Facebook has announced earlier that they are taking a new jump into the e-commerce business. Yesterday the company declared its newest reveal and its name is Facebook Shops. It’s a new tool to help businesses and buyers to create stores and offer their products directly on Facebook and Instagram.
Facebook will use third-party companies including Woo, BigCommerce, and Shopify to run the shops project. This will turn Facebook into a cutting-edge organization.
Mark Zuckerberg the CEO of Facebook announced the news in a live stream. He said that this step is important to start reforming e-commerce during the COVID-19 pandemic crisis. He also added that you can now receive your clients’ orders and ship them easily. If you can not physically open your store, this does not mean your business will stop. This crisis is encouraging more businesses to go online for the first time.
The Shops launch timing could not be better as the sales of e-commerce companies are hitting new records these days. The coronavirus pandemic has damaged a large number of small businesses. About a third of these businesses have stopped working at all according to a survey conducted by Facebook and the Small Business Roundtable. In the same survey, the other 11% think that they will stop as well if this situation goes on for more than three months.
Online sales can be a lifeboat for these companies. Etsy, a company specialized in knitting face masks and pastries baking, recorded double its revenue for the first time in three years.
Create Facebook Shops
All Shops can be created for free, where it will certainly add new more options for Facebook in terms of payment, advertising, and others. Stores can use ads to promote their products. Facebook checkout option also charges the buyers a fee.
Mark said that this service will improve the current online shopping experience. It will save the users’ payment credentials in a single service that can be used in any Facebook or Instagram store. He added that over 160 million businesses are already using their apps.
Shops will be easily found on Instagram and Facebook profiles/pages in addition to stories and ad promotions. The items that the business sells will be available in the shop. Users can order directly or save items for future use.
The orders may be directly managed through Facebook or through the website of the store, according to their will.
Stores will manage customer service and support through Messenger, Whatsapp, or Instagram. In the future, you will be free to browse products and order them through the chat window. On live streams, the owners can tag their products, it will appear at the bottom of the screen of the live video.
Facebook Shop will also add loyalty programs in its new service. You will easily track your points and redeem them for rewards. They will also help small businesses to build and manage their loyalty programs.
Facebook shop is not new in the e-commerce playground. It launched Marketplace in 2016. Marketplace is a place where you can buy and sell for anyone on Facebook. Instagram worked after that on a shopping app on its own two years later, but the idea was dismissed after that.
Shops will be available on Facebook starting today in the United States. Instagram will roll shops out later this summer. Instagram will first show brand products on the shop account, after that, this year they will add a new shopping tab to the navigation bar.