New Instagram Shopping will make you forget eCommerce websites

May 21, 2020

New Instagram Shopping will make you forget eCommerce websites

Mark Zuckerberg, the founder of Facebook announced many new features in the Facebook and Instagram shopping experience. It will offer the brick and mortar shops to sell online within their network. As you might already be seeing that Facebook and Instagram are slowly shifting towards the eCommerce industry. So, this would bring a boost to the shopping experience. Also, it will benefit Facebook ads as more and more businesses will be selling online.

The Rise of eCommerce

Before we get into Facebook and IG shops, let’s see something about the eCommerce industry. Everybody knows that eCommerce is booming day by day. More and more people are starting to buy things online. This pandemic just gave it a huge boost. Talking about the US, before this whole thing, there were roughly 15% of total sales made online. During this pandemic, the rise has increased by 13%, now 27% of the total sales are made online. This data is from the Bank of America.

This was a great thing for Amazon and Walmart. Along with this, even Facebook is doing its part in eCommerce. They are up with the whole new concept about which we are going to discuss in this article. They are partnering up with the small business owner and allowing them to sell the products online.

Another reason why Facebook is going with this shopping idea is because of the decrease in growth. Facebook ads remained flat in April. In the previous three months, Facebook ads had seen roughly 17% growth if you compare with year-over-year.

So, this idea will change the entire Facebook business.

The Facebook store is not like Amazon

Well, when we said eCommerce and shopping, most of you were thinking about Amazon. However, it is not so. Facebook and Instagram store is not like Amazon.

You see, Amazon has a concept where the customer goes with the mindset to buy a product and then searches for the best one. Facebook Store will work differently. It will automatically suggest the products for you.

Based on your activities of Facebook and Instagram, it will automatically suggest the best products. In Simpler words, it will present you the personalized shop instead of a shop with all the products based on the categories.

The exact words said by Facebook were “As with other parts of Facebook, we use your activity from Facebook Shops to personalize your experience on our apps and show you more relevant content, including ads”.

As a result, it will change the way we look at shopping.

Connection of eCommerce and Facebook

Mark Zuckerberg has been trying to integrate the shopping features on Facebook for a long time. Back in 2014, they were testing the buy button which never came into life.

Later on, they launched the Facebook Marketplace and Instagram shopping was also being tested in many countries. Many huge companies have already started selling their products with this.

The shop feature is different from what it looks like. It is more aimed at small businesses. The shop feature will allow them to create a simple storefront and then the brands can sell their products. Till now, they only had a product catalog available which was quite good but still it didn’t give the feel of an actual brand.

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Facebook has already been working with the biggest eCommerce platform, Shopify to provide the best shopping experience for its user. Shopify is one of the best platforms where a business owner can create their storefront and sell their products online. Shopify also provides payment features that bring us to the Facebook checkout.

The shop feature on Facebook is going to be free and nor the sellers will have to pay a cut to Facebook unless they use Facebook checkout. If the seller or the business owner wants to use a Facebook checkout, they will have to pay a small fee that is 5%. The fee is less than other popular eCommerce stores.

How to set up Instagram Shopping

If you haven’t set up your Instagram e-Commerce storefront, you will first want to check your eligibility and complete the account set up before we move on to your product catalog. First, let’s make sure:

The impact

Facebook is surely one of the biggest social networking websites. Along with Instagram, it has billions of users among which many would be interested in the shopping section too.

The old Facebook feature which was the “Buy” button didn’t come to live. This time they are all set with the Shopify platform to launch the whole new shopping features.

Also, the buy button was being tested in 2014 and since then, people are using Facebook and Instagram in many different ways. This helped them in creating this feature easily. A Shopify Executive, Satish Kanwar said “That behavior is just happening a lot more naturally than it was five years ago”. As a result, the features would be a lot more interesting. Also, as most of the brands are now using Facebook and Instagram more openly, it has become easier for the audience to interact with them. Currently, Facebook and Instagram ads have the highest conversion rate.

Till now, the eCommerce masterminds are already targeting the perfect audience with Facebook ads. Facebook just made the entire process easier and automated with Facebook shopping.

Now, after the launch of Facebook and Instagram shopping, it will change the experience of how we do shopping.

Final words

To summarize, this was all about the new Facebook and Instagram shopping features. It will be focused on the small business owner. They will get the storefront where they can sell the products using their own payment gateway/checkout or they can use Facebook checkout. They will only have to pay the payment fee if they use Facebook checkout else if they plan to sue their own, there will be no fees, and neither they will have to pay any percentage of the sales. So, this would be helpful for all the small merchants. Also, the 5% fee is less than the Amazon and eBay charges. Looking at all the features and the pricing, the business owner would prefer Facebook and Instagram shopping store compared to others. Let’s see how the market responds here.

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