The social media giant 'Facebook' launches 'Shops' to help the COVID-19 struck businesses to sell and expand online. The company is trying to expand all of its platform to create a business market places for the other businesses creating a full-fledged Facebook Shop, which can help them to acquire more customers and audience for their businesses. Let us see the complete report on the topic Facebook trying to enter in e-commerce environment with 'Facebook Shop'.
Business Model of 'Facebook Shop'
Facebook and Instagram are already supporting some sort of e-commerce marketing place for different types of products. Facebook has the option of Marketplace in their platform helping the merchants to get the good customers with the help of their ads business and their newly launched Libra currency. Similar to this, Instagram has the feature of posts and ads and so the users can buy the product easily by just seeing the trusted sources with the help of Instagram.
In the Live session, Mark Zuckerberg, talked about the new initiative taken by them in the field of retail marketplace over internet with the help of Facebook and Instagram. He told that, this is a new way of helping the businesses which are suffering adversely due to the COVID-19 pandemic and so thought to help the merchants to improve their economic conditions as well as the economic conditions of different country.
Facebook's CEO, Mark Zuckerberg also included that the Facebook and Instagram are one of the trusted sources of buying any product and this is all done by the regular users of these platforms and so, suggested that this will remain useful after the pandemic whereas will help the merchants to expand their online presence and existence. He also told that looking the presence of the large no. of community, he think that these community is going to continue living more of our lives online and grow more and will be going to do more business online in the upcoming future and the platform like them can help in this as they are having the high engagement rate .
3rd party integration in 'Facebook Shop'
The announcement also consisted the main highlight that the Facebook will be going to make a tie-ups with some of the partnering platform like Shopify, BigCommerce, Woo, Cafe24, CedCommerce,Channel Advisor , Feedonomics and Tienda Nube. These third-party platforms will be helping the merchants manage easily managing their Facebook Shops, as well as the ads tied to those Shops.
Revenue Source for 'Facebook Shop'
Dan Levy (Facebook’s vice president of ads) told about the benefits of this initiative to the social media platform. In other words, he told about the business model from this initiative. He told that the Facebook will be charging a small fees on each purchase done with the help of their platform and the real earning will be coming from the advertising, which has now become one of the money earning source for the Facebook.