While e-commerce is booming right now due to the pandemic, Facebook is leaping at the opportunity by doubling-down on its e-commerce business to make shopping a main destination and function for the app. Similarly to Instagram, Facebook is expanding the Facebook Shop feature which will allow consumers to browse through products and make purchases directly through the app as the feature was originally only available to users accessing the platform on their desktop. The Shops product was launched to provide a way for businesses to set up their own storefront on Facebook and Instagram for free as the pandemic hit small & large size businesses alike. The new tool will be available to eligible businesses across the globe and will include new customization options, messaging, as well as insights used to measure results. While Facebook is currently holding off on monetization of Shops transactions taking place on the platform, the social media giant plans to charge fees for business owners to use the tool. Shops will also serve as a one-stop shopping experience for users as products will be available for purchase within the app so users do not have to be redirected to another site where many drop-offs occur. Given the vast popularity of both Instagram and Facebook from a user and ads perspective, Shops will likely become a huge revenue line for both platforms. If this is the case, we could expect advertisers to shift budgets from other channels to FB, further increasing ad spend on the platform. Competitors such as Amazon and Google should be weary of the new feature since consumers already spend much of their screen-time scrolling through their social media apps. Now that these platforms offer an easy-and-seamless feature allowing their audience to purchase products directly from the app (some being promoted by their favorite influencers), it could be assumed that consumers will start to spend less time searching for products in other environments and more time scrolling through their social media given the new shopping feature.
Facebook also plans on making the shopping experience interactive and is adopting shopping methods similar to the likes of tried-and-true QVC by enabling live shopping events in which they can live-stream and show off the products that are available for purchase. This feature will also allow brands and creators to appropriately tag items from their catalogs so that those products will appear on the bottom of live videos where consumers can purchase directly from. Shops will also be integrating loyalty programs to incentivize consumers to continue to use the tool for future shopping needs. Businesses will also be able to interact and address any customer service or support issues through Facebook Messenger, Instagram Direct, and WhatsApp. Soon, Shops plans on allowing consumers to not only browse catalogs but also make purchases directly from the chat.
Ignited is always up to date on the “new best thing,” constantly utilizing test-and-trial methods to achieve business growth results for our clients. Ignited is already implementing Shops on Instagram to not only push e-commerce sales but also to have our brands be more easily accessible on the “Explore” page. Presence on the Explore page gives greater opportunity by expanding the ad’s reach which can potentially lead to more engagement, brand awareness, as well as followers.
Want to learn more about how Ignited can help reach your business’ e-commerce goals? Contact us today for a free consultation!
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