The Tech Bet

Hey Amazon lovers! Shop til' you drop on Twitter?

Christina Medici Scolaro
Tech Yeah! Amazon & Twitter partner up

Twitter is using the enticement of instant shopping through Amazon as a way to gain more members and increase engagement with existing members.  Amazon and Twitter announced the partnership Monday. 

Once a user links the two accounts, when a Twitter user spots a product they're interested in, they can add it to the linked Amazon account by hitting reply and typing #AmazonCart.  The user can then buy the product later.

Lionel Bonaventure | AFP | Getty Images

Jon Swartz, San Francisco bureau chief at USA Today said this is a revenue producer for Twitter.

 "They do a really good job of monetizing and milking as much revenue as they can from their existing members. That's the good news. The bad news is that they don't have as many members as they hoped they would have," Swartz said.

Swartz pointed out that Twitter is only reaching about half the amount of users they want, currently weighing in at 255 million members, missing its previous goal for 400 million users by the end of 2013.

Twitter's stock is off from the $74 high it made last December, in fact, shares are just slightly above the 52-week low it hit a week ago. That said, it's not the only social media company with falling stock prices. Shares of LinkedIn and Yelp are also lower.

Swartz said It would be a clear advantage for any social media site to be part of such a partnership.

"If you have an opportunity here in addition to advertising—which is the holy grail of social media companies—if you can actually bring in something like online shopping as tied in to Twitter, you expand your opportunities beyond advertising because everyone is moving in to mobile advertising," Swartz said.

 It gives Twitter an added dimension and advantage, he added.  "That's something they can exploit," 

—By CNBC's Christina Medici Scolaro.

Related Tags