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Keeping Up With Facebook: What Is Facebook Shops?

Amanda Rudich

Consumers continuously want a frictionless shopping experience. Whether it’s in store or online, providing a seamless experience from discovery to checkout can be the difference between a sale and a lost customer. This is one reason why Facebook released Shops. 

This new shopping experience helps Facebook and Instagram users browse retailers’ collections and products without leaving Facebook or Instagram. From a retailer’s perspective, shops are a great way to showcase a customizable storefront to make selling easier.

In this installment of Keeping Up With Facebook—a series that highlights the latest news and updates across Facebook Advertising—we discuss Facebook Shops and Instagram Shop. These two experiences keep simplicity in mind for retail marketers that want to connect with users and generate brand awareness and sales on each platform.

Release Date:

Facebook Shops was announced in May 2020 and is currently available at no cost to all-sized businesses. Instagram Shop began a phased rollout for retailers globally in May 2020 beginning with eligible businesses that use Instagram Profile Shops.

Which Channels:

Shops are available for retailers on both Facebook and Instagram.

What It Does:

According to Facebook, Shops are a new way to help small businesses further sell their products during the COVID-19 pandemic. Shops may entice retailers with a strong brick-and-mortar presence to bring their business online at no additional cost. Customers can access shops through retailers’ Facebook page or Instagram profile. 

Facebook Shops
Source: Facebook

Additionally, customers can find a shop through targeted ads across Facebook and Instagram. They can then browse, save, and order products directly through Facebook or Instagram, or check out on the retailer’s website.

What This Means for Your Business:

Facebook Shops and Instagram Shop give retailers a new avenue to showcase products and reach more customers. eMarketer reports that up to 51% of U.S. adults are using social media at higher rates during the COVID pandemic, meaning there is more opportunity to get in front of potential customers without them leaving social media platforms.

One major benefit retailers receive from shops is the no-cost setup. Retailers can simply use Catalog Manager to link their product feed to their shop. From there, they can create collections and promote new or best-selling products. Linking products in their shop to their website also requires no additional cost. However, there is a per-transaction fee for any products that go through Facebook and Instagram checkout.

Instagram Shop
Source: Facebook

Facebook has offered product ads for many years, but shops are a new way for people to find and purchase through the social media company. While retailers can setup and customize their shop in a matter of minutes, Facebook and Instagram users benefit from exploring products and brands without having to leave either platform.

Facebook also plans to integrate Shops with Facebook Live Shopping. Its latest press release states that sellers, brands, and creators will soon be able to tag products featured in their shops before going live. These products will also display below the video for viewers to access. While no release date is confirmed, Facebook plans to roll this feature out in the coming months.