With the relaxations that accompany Lockdown 4.0, the one that got us most excited was that now, we can finally shop! With all that saved up salary ready to be splurged, Facebook CEO, Mark Zuckerberg rolled out Facebook Shops. This feature is (obviously) launched on Instagram as well making it available to 1 billion active users on the platform, worldwide.
In his statement, Mark stated, “I think this is particularly important right now because so many small businesses are moving online to deal with the economic fallout from Covid-19. As people are being told to stay home, physical storefronts are having a hard time staying open and millions of people are losing their jobs.”
This basically means that businesses can have their entire selling front on Facebook with their products available for purchase. This e-commerce tool mainly targets small businesses that had to face problems due the pandemic, allowing them to push their business online. Zuckerberg clearly stated that the intention is not to undo the economic damage caused by Covid-19 but to start focusing on the solutions to get back on our feet.
How will it work?
The setup of Facebook Shops will be free. The Facebook page or Instagram profile will present as a catalog of products for that specific business. Adding of products is straightforward and can be customized on the basis of new collection and different customer preferences. Instagram and Facebook Shops, both can be set up simultaneously to reduce the back end work to a minimum.
Facebook is also in work with third-party services (like BigCommerce, Shopify) that will act as support to compliment the agenda of setting up these Shops for small businesses.
Zuckerberg also mentioned that the feature will be rolled out on Messenger and Whatsapp as well but gave no specific deadline for the same.
What does it mean for other e-commerce platforms?
Whether it’s directly or indirectly, Facebook will pose as a leading competitor to the big shots like Amazon. This could mean that Amazon’s monopoly in the market is currently at risk and could see a fall in its e-commerce market share. With a combined user base of Facebook and Instagram, it seems likely that Facebook Shops will see an exponentially increase in its market curve.
Will Facebook Benefit?
Facebook had seen a significant downfall in its ad revenue since the lockdown started as the expenditure on marketing and branding for a lot of companies, big and small, came to a standstill. But with things returning to its original order soon and high expectations for the market to turn bullish soon, Facebook Shops can actually bring in double the amount of revenue boost through Ads.
Today we’re introducing Facebook Shops, which will make it easy for businesses to set up a single online store on both @facebookapp and @instagram, and soon @messenger and @WhatsApp too pic.twitter.com/bBloRGBFzP
— Facebook (@Facebook) May 19, 2020
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