The recently introduced Facebook Shops enables businesses to sell products directly to users on Facebook and Instagram without being directed to a third-party store. Facebook is hoping that businesses will create virtual storefronts on the platform, which can be done for free. However, businesses will have to pay a 5 percent transaction fee on sales. Facebook CEO Mark Zuckerberg said they will not share information on what people buy, but they will use the information to personalize the user’s experience on the site.
Key Takeaways:
- Because of the coronavirus, Facebook is attempting to start a virtual shopping experience that can substitute for a mall.
- The idea is that shops can now have virtual stores on any of Facebook’s apps.
- Facebook is also enabling ads to take people directly to the shop featured.
“Setting up a shop is free, but Facebook’s Merchant agreements note that the company will take a 5 percent transaction fee on the sale of goods processed over its services. Ideally, businesses getting a sales boost from their virtual storefronts will also entice them to buy more ads.”
Read more: https://www.entrepreneur.com/article/350891
