What is Facebook Shops and How to Use it for Your Business

Taking cues from their success with Facebook Marketplace and Instagram for Business, Facebook has revealed a new point-of-sales opportunity, Facebook Shops.

facebook-shops-businessFacebook Shops allows businesses to use their Facebook account to sell their products online through the social media platform. This is big news for small businesses who either already sell items online or would like to start but don’t have the resources. No matter the size or budget of your business, you will be able to service your customers anytime anywhere!

Many businesses already have a Facebook account. Understandably, selling through Facebook would be a natural step to take for many small businesses. Facebook’s ecommerce platform also extends to Instagram and WhatsApp. This allows for a wider flexibility in reaching customers across multiple platforms. Some businesses may also focus just through a single social media platform and will be able to sell products through any of these.

Facebook is always striving to connect people on their expansive social network. Whether people are communicating with their friends, meeting new people, or buying and selling through Facebook Marketplace, there is something for everyone.

*Please note that Facebook Shops is still in beta and is only available to a select few at this time. However, Facebook will roll out this awesome new feature very soon!

How Does Facebook Shops Work?

If you have a Facebook business account or Instagram business account, you will have the option to create a shop page where you can showcase your featured products and customize the look and feel of your Shop to compliment your brand. Upload your own eye-catching cover image and change the color accents of your Shop page to make it your own.

Next, upload product images, description text, features, and price points for your products. Customers will be able to buy directly from you via Shops. Customers can view your Shop through your Facebook profile or Instagram profile, or discover your brand through ads or stories.

Buyers can browse your full catalog, save products they are interested in, and ultimately place an order. Buying through Facebook Shops can take place via desktop, app, or they can be directed to your business website.

Another benefit of using the Shops feature is that you can directly communicate with your customers through Facebook Messenger, Instagram Direct, or WhatsApp. Built-in chat features are incredibly helpful for assisting customers in finding a product, tracking shipments, or other questions they may have.

How Much Does Facebook Shops Cost?

A Facebook or Instagram business account is free, and so will Shops. However, Facebook will charge a percentage for each individual sale. The good news is that the numbers are very low. Sellers may expect to pay:

  • 5% transaction fee per transaction
  • $0.40 USD selling fee per transaction
  • Chargeback fee of $20.00 USD for each chargeback

Instagram Shops

In the coming months, Instagram Shops will be more connected with Facebook Shops for better cross-platform integration. Eventually, Instagram will have a Shops tab where products can be browsed and filtered by category. Using posts, stories, or ads within the Instagram ecosystem will make a one-tap buying experience possible within the app.

Using Facebook Live and Shops

Facebook will also integrate buying features through Live. This means that a business can “go live” and tag their products while live streaming. This is a dynamic opportunity for businesses to demonstrate a product, interact with customers in real time, and drive sales. After this update, many businesses won’t look at Facebook Live the same way again!

Loyalty Programs and Facebook Shops

If your business uses a loyalty program, your customers will be able to use earned points and redeem rewards on this platform. Users will be able to keep track of the points they earn and the rewards they’ve redeemed directly in their account.

How to Set Up Facebook Shops for Your Business

Follow these steps to set up your own Facebook Shops:

  • If you don’t have a Facebook Business Account, create one. Otherwise login.
  • Click to the page template and select the Shopping template.
  • Go to Settings>Templates & Tabs>Edit>Choose>Apply Template.
  • Select your Checkout Method and currency.
  • Accept the terms and conditions.

Once you have completed these first steps, the Shop Tab will appear on your Business Page. You aren’t quite done yet. To start selling products with your Facebook Shop, to do this next:

  • Add Descriptions and Products manually.
  • Once you add your first product, your Shop will be approved.
  • Select your Checkout Method. You may choose your own website if you wish.

That’s it! You are now ready to start selling with Facebook Shops.

How to Link Products on Your Website to Facebook Shops

After you have set up your Facebook Shops page, you may want to link the products on your website to your Facebook Shop.

Connecting Facebook with your website makes updating your virtual store so much easier. When you update products on your website, those changes will be automatically updated on your Facebook Shops page for a more seamless network.

To link your website products to your Facebook Shop, do this:

  • If you don’t have an ecommerce website, create one using any commonly used platforms (Shopify, WooCommerce, BigCommerce, 3dCart, Volusion, etc.)
  • Make sure all of the products you wish to sell are listed on your website.
  • Create a CSV file of your products.
  • Look for the Facebook Shop integration options in your ecommerce editor.
  • Follow instructions from your platform host to connect Facebook Shops.
  • You may need to provide your Facebook Pixel ID provided in your Facebook Business account. Follow these instructions from Facebook to get your Pixel ID.

After completing the steps from Facebook and your ecommerce platform, your website store and Facebook Shop will now be integrated! Customize the layout of your Facebook Shop to make your store most appealing to customers and improve their experience.

Using Third-Party Ecommerce Platforms with Facebook Shops

Facebook is working with an increasing number of ecommerce partners and expanding their network support. If your business website uses an ecommerce platform, it may already be on the list of supported partners.

So far Facebook Shops works with Shopify, BigCommerce, WooCommerce, Magento, Opencart, Prestashop, ChannelAdvisor, CedCommerce, Cafe24, Tienda Nube, and Feedonomics. The list is expected to grow in the coming months.

You won’t need to treat Facebook Shops as an island within your marketing channels. With their focus on ease of use and integration, Facebook wants to help businesses streamline their online presence.

Who is Facebook Shops For

There are no limits or exceptions in regards to who exactly Facebook Shops are for. That being said, the business owner would know best how well the platform would benefit. Facebook Shops makes a lot of sense for small businesses who already have an online presence, use Facebook, Instagram, or WhatsApp, or would like to start selling online.

The resources available are powerful with little overhead cost or resources. Larger businesses who may be advertising on social media could benefit from being able to sell to the individuals who discover them through the app.

Facebook Shops Requirements

According to Facebook, there are a few requirements for creating a Shops page. While not everyone can start selling through their account, most businesses already qualify. Here are the requirements to start using Facebook Shops:

  • You must sell physical items
  • Agree with Facebook Merchant Terms
  • Provide a link to a valid US bank account
  • Have a Tax Identification Number (TIN)

When Will Facebook Shops Be Available?

The beta version of Facebook Shops was made available to a small number of businesses as of May 9th, 2020. Although the Shops feature is available now, the final version is being rolled out slowly. The selling feature will be made available to more and more businesses in the coming months.

Follow the instructions to create your Shops page in your account. Facebook will prepare and review your page. Once your Shop is ready, you will receive an email from Facebook notifying you that your Shop is ready. Now you can begin managing your Shop and selling!

Using Facebook Shops During COVID-19

facebook-home-pageBecause of the economic complications caused by COVID-19, there are a few things to keep in mind if you are creating a Facebook Shop or planning to sell new products through Facebook.

Facebook, like many other online networks, are being more vigilant to help protect the public from questionable ads or products on the web. Within Facebook, there are new restrictions in regards to the use of COVID-19, coronavirus, or products that may be associated with these keywords.

Keep in mind that you may find your Facebook ads or products may take longer to be approved or may not be approved. It is best to review Facebook’s Terms & Conditions and familiarize yourself with their guidelines to avoid issues with your web store.

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