What is A Facebook Shop?
Facebook Shops are one of Facebook’s newer endeavors, introduced in May of 2020. This offering from Facebook allows stores to simply create an online storefront on a platform that welcomes over 2.9 billion monthly users.
A number of industries, such as eCommerce, automotive, and travel, are able to promote their products on Facebook and Instagram using this storefront. With a simple setup, a Facebook Shop is an easy way for a store to allow its consumers to explore and purchase products directly on Instagram and Facebook.
How Does It Help?
There are a few reasons that creating a Facebook Shop can greatly help a business. Three of the most prevalent reasons are it allows consumers to see products without having to leave Facebook, it can help businesses gain valuable insights about their products, and creates an environment to answer messages quickly and easily.
The first reason Facebook Shops are important for businesses is the ability to show products on Facebook without being directed to another website. This simplifies the shopping process for the consumer, and lowers the risk of them falling off during their shopping experience.
Another reason that creating a Facebook Shop is important for a business is the valuable insights that the business can gain regarding their products, sales performance, and more.
The amount of data available depends on if the business allows checkout directly on Facebook, or if they require the consumer to go to their site to checkout. Overall, you can get reports to gain insights on performance, discovery, tagged content, and audience.
Lastly, the third reason it’s important for a business to have a Facebook Shop is because of the environment that the shop creates which allows the consumer to send messages about the products to the business, and ease the engagement process for your company.
Businesses are able to stand out when they are more responsive than their competitors because it shows the customers how important they are to the business and it shows that the business is organized, and able to accomplish tasks quickly.
Although there are plenty of reasons to set up a Facebook Shop, there are some negatives to consider before making a final decision. For example, one negative about setting up a Facebook Shop for your business is the requirements that your products and company must meet in order to create the shop.
Facebook offers its service to five different industries, which include eCommerce, travel, real estate, auto, and entertainment/media. Depending on the industry that your business falls into, there are different requirements that the products must meet, and navigating around these requirements can be time-consuming.
Another negative aspect of starting your own Facebook Shop is the lack of control that you have.
Compared to your own site, Facebook is going to have much fewer customization options, and you will have less control of your brand’s image. While Facebook does still allow some customizations to increase the UX on your Facebook Shop, there are a lot of aspects of the shop that cannot be controlled.
A third negative aspect to consider before setting up a Facebook Shop is the fee that Facebook charges. This fee is only going to apply to businesses that sell their products directly in the Facebook Shop instead of directing the consumer to another website.
For every sale that your business makes in your Facebook Shop, Facebook is going to charge a 5% selling fee for each purchase, or a flat fee of $0.40 if the sale is less than $4.00. This fee accounts for taxes and processing and is applied to purchases made in any product category on both Facebook and Instagram.
Facebook Shops are a great endeavor for a business to pursue while trying to increase its online presence. It is available for use in a wide range of industries and has a simple setup to get the shop started. Before diving into a Facebook Shop, there are pros and cons that the company should be aware of.
Pros of Facebook Shops include the ability to show your products directly on Facebook, the valuable insights that can be gained about your products, and the environment that eases engagement between your company and your consumers.
On the other hand, you should be aware of the requirements that your company must meet, the lack of control you are going to have over the Facebook Shop, and the fees that you will be paying on every sale if selling directly in the shop. Creating a Facebook Shop can certainly be beneficial for a business, but you must be aware of the trade-offs that come with it.