Earlier this week, Amazon announced a move towards socializing online shopping. A new application will allow Facebook users to integrate information from their Facebook profiles with their Amazon accounts.
So what does it do? In short, Amazon shoppers will be able to see recommendations from their friends on Facebook. It also will alert them to upcoming birthdays and suggest gifts from Amazon based on friends' interests and preferences from their Facebook profiles.
Does Facebook see Amazon purchases? No. Amazon states it will not share account information with Facebook, so Facebook will not receive any information about a user's purchases at Amazon.
Does Amazon see Facebook activities? Yes, but only profile information that is publicly shared on Facebook. Amazon will not scrape non-public information from friends' profiles. Meaning the application will only provide suggestions for those who are open-minded about sharing personal information to anybody online.
From a commercial perspective it is clear to see the benefits of one major online player having access to your activities on another major site. Whether users will be comfortable is another matter. If the integration is perceived to have value for the consumer, it will likely be welcomed. There is no doubt Amazon can drive up sales from the integration; the question is whether users are being compensated sufficiently for allowing them to use their data.
Is the utility in seeing friends' favorites and tips for their birthdays worth it alone, or is something more required, e.g. points, rebates, special promotions or other benefits - paid out in Facebook Credits for instance?
