Earlier this year, Accenture reported that the global social commerce industry is expected to grow three times as fast as traditional e-commerce, from $492 billion in 2021 to $1.2 trillion by 2025. This growth is attributed to platforms and brands investing significantly in the space as Gen Z and millennial consumers continue to drive the majority of sales and are hungry for more.
Among these platforms is Facebook, which launched its Shops feature in 2020. What used to be a space dominated by small businesses without websites who wanted to showcase product catalogs on their Facebook profiles quickly became a space in which medium and large enterprises also sought to participate. However, some of the factors marketers are considering are understanding whether it's the right move for your brand and the amount of work involved in getting started. If you keep reading, you should be able to find the answers to all of your Facebook Shops questions.
Simply put, Facebook Shops is an online store where users can browse, shop, and buy products directly on Facebook or by clicking through to a company's website. You can think of it as the shop display window for your Facebook Page.
Due to the fact that Facebook Shops are discoverable organically and through ads, social marketers have a lot of opportunities to optimize their Facebook marketing strategies and boost sales. In fact, over a million people purchase products from Facebook Shops every month, and brands who invest in the platform are seeing significant returns. In one campaign, Kiehl's Malaysia attributed 59% of online sales in part to Facebook Shops, while Pink Tag Boutique reported 66% greater average order values from Facebook Shops users compared to those who bought from its website.
Ultimately, Facebook Shops is proving to be a valuable social commerce platform for many brands. With it, consumers enjoy smooth shopping experiences and exceptional customer service, while marketers can seamlessly integrate product catalogs and increase reach with ads.
Many marketers ask themselves this question. Typically, small businesses without websites sell their products through online stores like Facebook Shops. However, any B2C brand can benefit from this feature, regardless of size or industry.
Small businesses - Facebook Shops is ideal for business owners selling online for the first time. The feature is especially appealing to those who do not have a website and need to build brand awareness on a platform with 1.62 billion daily users.
Medium businesses - Established brands looking to grow their audience or expand into new markets can also greatly benefit from Facebook Shops. The simplicity and in-platform convenience of the feature make it a no-brainer for these brands.
Large businesses - With Facebook's easy inventory upload, you don't have to think twice about getting involved if you sell online already. As customers are able to make purchases directly on the brand's website, it is also an invaluable tool for established businesses.
There are hundreds of thousands of people browsing Facebook at any given time around the world, making it a thriving hub of activity. An additional benefit is that marketers can run Facebook Ads for their Facebook Shopping campaign, instantly reach a new audience, and drive conversions for their brand store.
Now that you understand what Facebook Shops can do for your brand, it is time to explore how you can get started and set up your Facebook shop.
You can upload your products manually, use an API or feed, or connect your catalog to an e-commerce platform. You should consider several factors, such as the size and type of your stock and the frequency of changes to your inventory. Dash Hudson’s product catalog integration solution may also prove useful here. The process of manually uploading products is outlined below.
After setting up your shop, you can customize its layout and style to reflect your business and create familiarity and identity.
Facebook outlines the following requirements for your account and Page in order to sell on the platform:
Using Dash Hudson's Facebook product tagging integration allows brands to create and share shoppable content on Facebook more efficiently. As a result of this feature, brands can now add Facebook product tags directly to their posts and publish them via Dash Hudson. Putting it simply, we make monetizing your content accessible.
Furthermore, Dash Hudson's Facebook Insights allows you to focus on your most important metrics with our topline stats and get a quick view of your Facebook page's performance. Easily create a campaign or quarterly reports based on these metrics and instantly share them with your team and stakeholders. Your Facebook marketing strategy will have to evolve along with your audience's tastes - so take the time to gather all the insights you need to stand out from the crowd.
As expected, Facebook will charge some fees when you use Commerce Manager to sell products, and the fee is deducted from your payout automatically every time you make a sale. The selling fee is 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less. Your remaining earnings are yours to keep, and taxes and payment processing costs are included.
When you sell a product through the Shops feature, Facebook will charge a selling fee of 5% per shipment or a flat fee of $0.40 for shipments of $8.00 or less. The fee is deducted automatically from the sale, and taxes and payment processing fees are also included.
When precautions are taken, Facebook Shops are as safe and secure as other sites. Look at reviews to determine the legitimacy of the store. In addition, Facebook provides some precautionary information that you can check out.
Yes, you can. With a Facebook Shop, you can easily encourage customers to make purchases on your website, and medium and large businesses often use this method. However, you do not need a website to sell through your Facebook Shop.