Facebook is going to compete with online stores and hopes to make its own mega-database more valuable, especially now that online sales are booming. In addition to Facebook itself, Facebook Shops also opens on Instagram.
In this conversation with the Financial Times Facebook boss Mark Zuckerberg says the feature has been in the works for some time and has now been brought forward due to the massive demand for online orders due to the corona crisis. He also says that his company plans to use the user data that this generates, such as interest in products and sales, to further personalize ads. ‘The network wants to guide the entire customer journey,’ Kitty Koelemeijer, professor of marketing at Nyenrode University, responds to NOS on the initiative Facebook Shops that on too Instagram is being rolled out. She thinks the initiative “has all the potential to grow up, including through influencers:” Kylie Jenner can sell her lipstick directly to customers rather than through an intermediary like Amazon or Douglas. “
Five percent commission
The use of the functionality of Facebook Shops becomes free for retailers. It is true that when using Facebook’s own payment method, a commission of five percent is charged, according to the American tech site Recode. It is not yet known when the position will become available in the Netherlands, the NOS reports in this more extensive article. The test is currently underway in the U.S. The Netherlands is expected to follow sometime in the coming months.
(PvWK, sources: FT, Facebook, Recode and NOS, photo above: FB Shops on Instagram)