Facebook Shops
Facebook has stayed in the spotlight over the past few months, with the July boycott by advertisers and the impact of the platform on the upcoming US election making front page news. Meanwhile, shifts in consumer behavior due to COVID-19 have created a surge in user activity, and time spent on the platform remains elevated. However, it is Facebook’s most recent product announcement that may have the most significant long-term impact for advertisers.
Small businesses are the largest source of ad revenue for Facebook and these local companies have been hit hard by the economic impact of COVID-19. Unable to rely on foot traffic to their brick-and-mortar locations, businesses are searching for creative ways to service their customers, many of whom now shop from the safety of their homes. In an effort to help businesses connect with their customers online, Facebook has launched Facebook Shops, providing free and easy eCommerce functionality hosted by the platform.
Facebook Shops make it simple for businesses to set up a single online store and present a consistent brand experience across the Facebook network, whether on Instagram, WhatsApp, Messenger, or Facebook itself. A business can select which products to feature from their catalog and the storefront is customizable with a cover image and accent colors. As there is no set-up cost, Facebook has made social eCommerce accessible to all businesses, no matter how small.
These digital storefronts also provide a frictionless purchase experience by allowing users to move seamlessly through the entire customer journey, from discovery and consideration to purchase, all while leveraging the existing social media platforms. Facebook conveniently remembers credit card and shipping information, creating a high conversion experience to minimize abandoned purchases. “The average bounce rate for pages loading within 2 seconds is 9%, and the bounce rate soars to 38% by the time it hits 5 seconds!” according to Pingdom.
For businesses, the launch of Facebook Shops could not have come at a better time, as business owners are seeking any resource available to construct a digital business from the ground up. According to eMarketer, retail social eCommerce sales are expected to more than double (130%) over the next five years, reaching $53.94 billion in sales by 2024. In a time when many physical storefronts are closed and point of purchase sits idly behind locked doors, Facebook Shops aims to allow small businesses to open again while tapping into the growing social eCommerce trend that started before COVID-19.
Facebook Shops can be accessed via a business’ Facebook page or Instagram profile, or discovered through stories or ads. A user can browse, save products, and place orders without having to leave the platform. Future additions to the offering include enhancements that will allow users to discover collections and categories via a new shopping navigation bar, live shopping features, and business loyalty programs.
To support eCommerce functionality for smaller businesses, Facebook has partnered with companies like Shopify, BigCommerce, WooCommerce, ChannelAdvisor, CedCommerce, Cafe24, Tienda Nube and Feedonomics to provide easy-to-use technology that arms businesses with a way to adapt in these uncertain times. Although the launch of Facebook Shops has been tailored to the needs of small businesses, brands and sellers of all sizes can benefit from leveraging this technology and expanding their presence on the world’s largest social media platform. If past performance is an indicator, the benefits and capabilities of Facebook Shops should drive significant adoption, making it a major facet in eCommerce strategies for marketers moving forward. This likelihood is only enhanced by the fact that these tools are FREE to use… for now