With an increase in online shopping during Covid-19 Facebook is currently rolling out its retail platform to compete with the likes of Amazon and eBay. It’s called “Facebook Shops’ ‘. This new tool creates a digital storefront for both Facebook and Instagram where businesses can showcase their products. With Facebook collecting valuable data to improve its advertising service. Each user is able to browse the products available whilst using the new checkout feature to complete purchases. But, what makes Facebook Shops different?
Helping Small Businesses
Every business has been affected by the current pandemic. Facebook homes as many as 160 million small businesses on its platform. Which means a lot of these owners, advertisers and entrepreneurs are currently struggling to make ends meet. CEO Mark Zuckerberg said in a statement:
“We’re seeing a lot of small businesses that never had online presences get online for the first time, and we’re seeing small businesses that had online presences now make them their primary way of doing business,”
With brick and mortar stores closing across the world, many businesses are bringing their businesses online. Facebook Shops allows these businesses to create a catalog of products and customise their shopfront the graphics and branding they choose.
What makes it different?
So, what’s the big deal? Well, Users can checkout directly from Facebook without going to a third party to complete the purchase. Before, many transactions online were left up to the sellers to organise. Now you can set-up, sell and profit all in one place. Transactions will be made using Facebook Pay. With each purchase using Facebook Pay, Facebook will tailor its ads based on previous purchase data. This data will help advertisers by increasing the accuracy of their targeting. Alongside each purchase, users can choose if they would like to receive marketing emails from the business.
You can set up Facebook Pay in three simple steps:
- Open up Facebook and select Settings
- Select “Facebook Pay”
- Select your payment method
Impact on Advertising
With the integration of Instagram this will put a stronger focus on influencer marketing. With brands and products readily available to purchase directly on the platform. This could drastically increase the ROI of influencer marketing. With sales figures even easier to track from time and money spent collaborating with content creators with large followings.
“Soon, sellers, brands and creators will be able to tag products from their Facebook Shop or catalog before going live and those products will be shown at the bottom of the video so people can easily tap to learn more and purchase.” – Introducing Facebook Shops: Helping Small Businesses Sell Online
Facebook announced they will be working closely with partners such as Shopify, BigCommerce, WooCommerce, ChannelAdvisor, CedCommerce, Cafe24, Tienda Nube and Feedonomics. To give small businesses a hand in managing their Facebook Shops.
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