Facebook Shops To Drive Accessible E-Commerce In 2020

With the COVID-19 pandemic accelerating digital transformation, Facebook announced its entry into e-commerce. On May 20th, founder Mark Zuckerberg unveiled Facebook Shops — a mobile-first shopping experience designed to help businesses reach customers directly through Facebook and Instagram.

How will Facebook Shops operate?

Facebook Shops builds on the existing Marketplace platform launched in 2016. Business owners can showcase product catalogues and collections on their pages while customising their shops with branded cover images and colours — a distinction from Amazon’s standardised approach.

The feature lets users browse products on Facebook Pages and Instagram profiles, save items, and complete purchases within the app. Zuckerberg also announced plans to expand Shops to Facebook Messenger and WhatsApp.

Facebook is partnering with Shopify and BigCommerce to deliver what it calls a “Real-time Shopping Experience.” The platform includes customer support features like order tracking, receipts, and direct messaging.

Why now, and how Facebook stands to gain

This is Facebook’s second e-commerce push after the unsuccessful Facebook Store. Shops aims to convert social platforms into direct sales channels for small business owners — accessing Facebook’s massive user base without fees for merchants.

The initiative also addresses flat ad revenue during April’s pandemic downturn while positioning Facebook to compete with Amazon.

What will it cost to operate a Facebook Shop?

Setup is free for Facebook Page owners. Merchants pay a 5% transaction fee on sales processed through Facebook’s checkout system.

Making the most of the new feature

The feature rolled out initially in the U.S. on Facebook, with Instagram and global expansion planned. Brick-and-mortar businesses should explore this tool as a low-friction path to transitioning online.