Why Facebook Shops is more than just a new feature
With an increase in online shopping during Covid-19 Facebook are currently rolling out their own retail platform in order to compete with the likes of Amazon and eBay called “Facebook Shops’ ‘. This new tool creates a digital storefront for both Facebook and Instagram where businesses can showcase their products, and Facebook can collect valuable data to improve it’s advertising service. Each user will have the ability to browse the products available as well as use the new checkout feature to complete purchases at the same time.
Helping Small Businesses
All businesses have been affected by the current pandemic and Facebook homes as many as 160 million small businesses on it’s 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?
The reason this feels like a bigger deal is because of the purchasing options available. 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 themselves 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 their 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.
Facebook also announced they will be working closely with their partners such as Shopify, BigCommerce, WooCommerce, ChannelAdvisor, CedCommerce, Cafe24, Tienda Nube and Feedonomics to give small businesses a hand in managing their Facebook Shops.
If you need a helping hand with your Facebook advertising campaigns or growing your business through social selling get in touch and find out how we can help you grow your business.