POV: Facebook Ecommerce Updates

Background:

Facebook has announced another ecommerce update, launching a Shop tab in the main Facebook app and is also expanding its Shop products on both Facebook and Instagram.

Details and Implications:

Facebook Shop Tab

Facebook is launching a Shop tab test on its main Facebook app. The feature is similar to the Instagram Shop tab that was launched earlier this year, both are in testing in the US with a global launch expected to follow.

In May, Facebook updated its ecommerce features and announced the launch of Facebook Shops across its family of apps, which essentially allowed brands to turn their pages into storefronts and since the launch, 1 million businesses have created Shops. Now this new Shop tab update will allow people to search for products and explore brands and categories in a dedicated tab on the Facebook app. The use of AI will make it easy for users to find relevant products. For brands, Facebook Shop will provide opportunities for them to be discovered by new customers.

The update will also include an expansion in the tools available to businesses, including: new design tools for single products and groups of products - which will be available within the ‘Customize Your Shop’ tool in the Commerce Manager; real-time collection previews; new data and insights to measure results; new automation options and messaging options. Businesses will be able to communicate with their customers over Messenger and Instagram Direct and in the future, WhatsApp too.

Other commerce updates

Along with these Shop updates, Facebook will also be launching Checkout on Instagram in the coming weeks which allows people to buy products without leaving the app. The feature stores payment information for future purchases, making it really easy for consumers to buy items. It is only available for businesses that use Facebook Commerce Manager or their partners Shopify and Big Commerce and it is currently only available in the US.

Facebook is also testing a live shopping experience to make it easier to shop in real time. This was announced back in May with the launch of Shops but is now being tested in the US on both Facebook and Instagram and will help businesses set up a live experience featuring products from their shop and sell directly from the video.

Summary:

Mindshare’s New Normal Tracker shows that more and more people are shopping online, 44% of global consumers are shopping online more than before the pandemic and of these, 75% say they will continue to do so in the future. Therefore, Facebook Shop will provide even more ecommerce opportunities for brands as the latest developments make it easier to shop and sell within the app.

Further Reading:

The Verge | TechCrunch | Social Media Today | AdAge | Facebook