Chief Executive Mark Zuckerberg said on Tuesday that Facebook is launching Shops. This service will allow businesses to display and sell products. It will be on largest social network’s platforms.
The move to build up e-commerce offerings follows Facebook’s launch last year. This was of limited shopping options on photo-sharing app Instagram and WhatsApp. Company leaders making the platforms more business-friendly, will generate fresh ad revenue.
Facebook Shops will enable businesses to set up a single online store that will be accessible via both Facebook and Instagram. The Checkout feature will enable In-app purchases. Also, a messaging feature will allow customers to chat with businesses through WhatsApp, Instagram and messenger.
Also, Zuckerberg said the platform will work more closely on product integrations. It will be with Shopify and seven other online commerce platforms. Shopify CEO Tobias Lütke joined him in a live-streamed video telling about the partnerships.
Shops will be free for businesses. This is to access with the expectation that it will boost ad sales and consumer engagement.
“Our business model here is ads,” Zuckerberg said. “Rather than charge businesses for Shops, we know that Shops are valuable for businesses. They’re going to in general bid more for ads and we’ll eventually make money that way.”
Also, Facebook is coming with a tool to connect loyalty programs and a shopping feature. This includes showing product tags under live videos. And also allowing viewers to make purchases while watching. According to Zuckerberg, more than 800 million people engage with live videos. This number is on daily basis across Facebook and Instagram.
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