“While Facebook hasn’t stipulated the exact fees for Shops, the current fee structure for Facebook Checkout is 5% per shipment or a flat fee of “They also aim to let users tag products during Facebook and Instagram live streams that click-through to product detail pages. These types of features are essential for playing to their strengths and make this a more social commerce experience different from Amazon and Google.”
One differentiator that Facebook has against its major ecommerce competitors is its core strengths in product discovery and demand generation.

The new feature, which will reportedly launch later this summer, will include a new shop tab in the main menu bar that allows users to shop with a tap.

“Navigating Facebook’s platform will be a familiar experience for many, and an opportunity for them to more easily expand their ecommerce presence. It’s likely that Shops will allow them to tie into local community pages, groups, and events for more visibility.” 
— Evan Kirkpatrick, VP of Shopping & Feed Management at Tinuiti Facebook is partnering with Feedonomics, Shopify, BigCommerce, WooCommerce, ChannelAdvisor, CedCommerce, Cafe24 and Tienda Nube on this rollout.

What Are Facebook Shops?

Source: Facebook

facebook shops example mobile

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Shops are free to create but will reportedly charge a fee when Facebook’s native checkout is used, which is still currently in alpha. In the meantime, users cannot purchase within the app unless the brand has access to Instagram Checkout beta.

Next Steps

Instagram Shop is an extension of Instagram’s current shopping features that allow users to browse and buy directly from the Explore feed as well as specific brand and creator pages. 
While Facebook’s original announcement emphasizes the focus of Shops being for helping small businesses as they struggle during COVID-19, there’s little doubt that the platform will become a major opportunity for brands and businesses of all scale.
“Facebook has been adding shopping features to its platform over the years, but this is a significant move towards becoming a social commerce platform. Long-term, they’ll be able to utilize WhatsApp and Messenger to drive higher engagement through chat.”

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