After losing $440 million last quarter, Snap Inc is launching a merchandise store…but the goal isn’t to make money. Today the company launched the Snap Store which lives in the Snapchat app’s Discover section and lets you buy Snapchat merchandise liek a $20 Dancing Hot Dog Plushie or a $30 Dog Lens T-Shirt. You can scan the Snap Code below with the Snapchat camera to open the store and buy exclusive items that will only be available for a limited time.
This isn’t designed to be a serious revenue stream for Snap Inc, though, despite it missing revenue targets last quarter. A Snapchat spokesperson gave no official comment but told me this is something the company does for its community. Essentially, it’s a way to drive brand loyalty, though it also earns Snap some free marketing as people wear the gear.
But if Snap can use its own Snap Store to prove the potential for in-app ecommerce, it could potentially develop a real revenue stream around charging brands a cut of what they sell on Snapchat or getting them to buy ads promoting their stores.
Snapchat has previously sold a few items like a Ghostface Chillah backpack on Amazon, and it sold its Spectacles camera sunglasses through its Snap Bots, pop-up shops, retail partnerships, and online. But now Snap is running its own sales of the third-party manufactured merchandise. And users can subscribe when they first open the Snap Store to see it pop up in the Discover section when new items become available. The next product drop happens on February 8th.
The current product offering is:
Dancing Hot Dog Plus Doll: $19.99
Streak Hat: $29.99
Winkface Sweatshirt: $49.99
Dog Lens Tee: $29.99
Bring Back Best Friends Sweatshirt: $49.99