Facebook Inc is launching Shops, a marketplace enabling businesses to view and sell goods on the platforms of the world’s largest social network, Chief Executive Mark Zuckerberg said on Tuesday.
The push towards building up e-commerce services follows last year’s Facebook launch of restricted shopping choices on the Instagram photo-sharing site and WhatsApp messaging service. Company leaders wager to make the sites more business-friendly, even as consumer development slows, would produce fresh ad revenue.
Facebook Shops will bind at least some of these efforts together, allowing groups to set up a single online keep reachable from both Facebook and Instagram.
At least some of these efforts are connected by Facebook Shops, which enables companies to create a single online shop accessible both through Facebook and Instagram. A control app allows in-service transactions.
Consumers can communicate through WhatsApp, Facebook, or Instagram Direct with businesses through a deeply integrated Messages app.
Zuckerberg has also confirmed that Shopify and seven other online trading sites will work more closely with the world’s largest network. Tobias Lütke, CEO of Shopify, joined him in a live video showing the collaborations.
After the initial start of Facebook Shops, Shopify ‘s acts decreased, then resumed after the introduction of Lütke. In the afternoon the US market, shares of both companies increased by more than 2%.
Much like the other e-commerce apps of Facebook, shops will be able to give businesses the incentive to increase their commitment to consumer goods and advertisement revenues.
“Our business model here is ads,” Zuckerberg said. “Rather than charge businesses for Shops, we know that Shops are valuable for businesses. They’re going to in general bid more for ads and we’ll eventually make money that way.”
Facebook is also developing a tool that enables viewers to connect loyalty programs and a shopping feature that shows product labeling in live videos. Zuckerberg said that more than 800 million people use Facebook and Instagram live videos every day.