Snap dives into AR e-commerce, redesigns Spectacles

Snap is launching a futuristic e-commerce platform that allows users to try on jewelry, clothes, and other products.

Snap e-commerce: Snap CEO Evan Spiegel revealed on May 20 a set of augmented reality tools that will lay the groundwork for its e-commerce platform. The shopping tools will allow users to set their phone down to browse and try on brands’ catalogs, including clothing, jewelry, and bags. Users can also scan a photo of an outfit to receive clothing recommendations, and businesses will soon be able to list products that you can buy in-app.

Apple effect: Snap hopes its e-commerce platform will shield it from the impact of Apple’s new privacy policies, which helps users stop apps from tracking across iPhone apps. Investing in e-commerce creates new opportunities for Snap — and indie hackers — as it derives nearly all of its revenue from advertising.

A strong turnaround: Snap has had its share of ups and downs. After an unpopular redesign in 2018 that dropped the company’s valuation to $6 billion, Snap is now worth $86 billion. Snap posted revenue of $2.5 billion in 2020, up about 45 percent from $1.72 billion in 2019.

Unprofitable: Snap still isn't turning a profit and posted a net loss of $287 million in Q1 2021. However, some analysts say 2021 may be the year it finally enters the black.

“The strength of our business underscores our relentless focus on product innovation and is a testament to our team’s ability to execute well together over the long term.” —Evan Spiegel, Snapchat CEO.

COVID bump? Over the last year, users have flocked to the social video platform. Snap now has 280 million daily users — up 22 percent from 229 million daily users in May of 2020.

Android tops iPhone: There are now more Snappers using Android devices than iPhones. Spiegel said that is “a critical milestone that reflects the long-term value of the investment we made to rebuild our Android application.”

Fourth time’s the charm: Snap unveiled its latest generation of Spectacles — its first pair of shades to support augmented reality. The boxy, black specs are reminiscent of a pair of 8-bit pixel sunglasses popularized in memes but the hardware’s tech is a bit more impressive. Snap spent $500 million to acquire AR-tech firm WaveOptics.

The specs: Spectacles feature dual waveguide displays that superimpose AR creations in outdoor or indoor environments, four microphones, two cameras, two speakers, and an integrated touchpad. Snap isn’t selling them yet but rather giving them to AR creators that must apply. The Verge reports the Spectacles’ battery lasts only 30 minutes.

Creator tools: Snap launched an updated version of Lens Studio that allows creators and developers to build AR experiences in gaming, education, shopping, and more. Snap is deploying a $3.5 million fund for creators building AR experiences and offers a fellowship program that offers designers between $15K and $150K to build products.

Creator Marketplace: Snap is also making it easier for AR creators to connect with brands using the platform. You can learn more about the marketplace here.

“For businesses, this is a new opportunity to leverage the creativity and expertise of Snap Creators – who know the Snapchat Generation best! – to drive ROI for Snapchat marketing activity. For Creators, it opens the door to greater partnership opportunities with all kinds of brands so that Creators can build their own business on Snapchat,” —Snap blog

What do you think of Snap’s e-commerce strategy? Share your thoughts below.