What is F/Facebook Commerce (Facebook Shop)?
Are you a small or medium business owner looking for a new way to sell your products? Facebook Commerce, also known as Facebook Shop, might be just what you need. This feature allows businesses to set up an online store on Facebook and Instagram. But before you dive in, here are some things you need to know.
However, if you are looking for an agency that can provide support for Facebook shops and run Facebook and Instagram ads for you, you can consider us.
Who Is Eligible for Facebook Commerce or Shop?
To use Facebook Commerce, you need to meet several eligibility requirements. Here are some of the most important ones:
1. Facebook Account
You need to have a personal Facebook account to set up a Facebook Shop.
2. A Business Page
You need to have a Facebook Business Page to use Facebook Commerce.
3. Minimum Likes
Your business page should have a certain amount of likes. This is not a mandatory thing.
4. Products Need to Be Physical
Facebook Commerce is designed for businesses that sell physical products. Digital products and services are not allowed.
5. Comply With Facebook Shop Merchant Terms
You need to agree to Facebook’s Merchant Terms and Policies.
6. Business Registered in the Country
Your business needs to be registered in the country where you’re using Facebook Commerce.
7. A Valid Bank Account
You need to have a valid bank account to receive payments from Facebook Commerce.
8. A Tax Identification Number
You need to have a tax identification number to set up a Facebook Shop.
How Is Facebook Shop Different From Facebook Marketplace?
Facebook Shop and Facebook Marketplace are two distinct features on Facebook. Facebook Shop is designed specifically for businesses to set up an online store on Facebook and Instagram, and is best suited for new or professional sellers. On the other hand, Facebook Marketplace is primarily used for buying and selling used goods with other Facebook users, and is more of a peer-to-peer platform. However, businesses can still showcase their products on Facebook Marketplace by uploading them on Facebook Shops. So while they share some similarities, it’s important to note that Facebook Shop is tailored for businesses, while Facebook Marketplace is geared more towards individual users looking to sell their used items.
The Benefits of Facebook Commerce or Shop
Here are some of the benefits of using Facebook Commerce:
1. Access a Large Audience
With over 2.8 billion active Facebook users, Facebook Commerce gives you access to a huge potential audience.
2. Lower Marketing Costs
Facebook Commerce is an excellent option for small and medium businesses looking to promote their products while keeping marketing costs low. You can set up a Facebook Shop for free without any cost to Facebook, although you may need to spend some money to advertise your products to new audiences. Additionally, if you choose to use the Facebook and Instagram checkout systems, Facebook will charge a certain amount for each transaction. Despite these fees, Facebook Commerce remains a highly cost-effective way to reach new customers and grow your business.
3. Connect With Customers
Facebook Commerce allows you to connect with customers directly through Facebook and Instagram Messenger. So it’s a huge advantage.
4. Mobile-Friendly
Facebook Commerce is designed to work seamlessly on mobile devices, making it easy for customers to browse and buy products on the go.
5. Seamless Customer Experience
Facebook Commerce offers a seamless, integrated customer experience that makes it easy for visitors to browse and purchase your products. Research has shown that when customers have a positive shopping experience, they are more likely to make a purchase. With Facebook Shops providing a good user experience, customers are more likely to feel comfortable and confident in making a purchase. From browsing to checkout, Facebook Commerce ensures that the customer journey is smooth and hassle-free, leading to higher conversion rates and greater customer satisfaction.
6. Facebook Shop Fees
One of the benefits of Facebook Commerce is the transparent fee structure. There are no upfront fees to set up a Facebook Shop, making it an accessible option for small and medium businesses. Facebook takes a small transaction fee only if you choose to use its checkout system on Facebook and Instagram. However, if you choose to use your own website for checkout, Facebook will not charge you any fees.
7. Seamless, Easy Checkout
Facebook Commerce offers a convenient checkout solution for businesses that don’t have their own website. With Facebook’s checkout system, customers can complete their purchase without leaving the platform, increasing trust and reducing cart abandonment. This streamlined checkout process makes it easier for businesses to convert visitors into customers, while providing a seamless and reliable experience for both parties.
8. Increase Your Reach With Ads
Facebook Commerce allows you to promote your products with targeted ads, increasing your reach and driving more sales.
9. You Don’t Need a Website
If you don’t have a website, you can still sell products using Facebook shops. In that situation, your customers just have to check out from Facebook and Instagram directly.
The Limitations of Facebook Commerce or Shop
While Facebook Commerce offers many benefits, there are also some limitations to consider:
1. Transaction Fee
Facebook takes a small transaction fee on each sale made through Facebook Commerce if you choose checkout directly from Facebook and Instagram.
How Is Facebook Commerce or Shop Different From Ecommerce?
Facebook Shop, a feature that enables businesses to set up an online store within their Facebook page, is known as Facebook commerce. This allows businesses to showcase their products, provide details and pricing, and allow customers to make purchases without leaving the Facebook platform. In contrast, traditional e-commerce refers to the buying and selling of goods or services over the internet through a dedicated website or online marketplace.
There are several key differences between Facebook commerce and traditional e-commerce:
1. Platform
Facebook commerce is built on top of the Facebook platform, while traditional e-commerce is typically hosted on a separate website or online marketplace.
2. Discoverability
Facebook commerce allows businesses to leverage their existing social media presence to attract and engage with potential customers, while traditional e-commerce requires businesses to actively market and promote their website or online marketplace to attract visitors.
3. Customer experience
Facebook commerce offers a streamlined shopping experience that allows customers to browse, shop, and checkout without leaving the Facebook platform, while traditional e-commerce may require customers to navigate multiple pages and websites to complete a purchase.
4. Integration
Facebook commerce is tightly integrated with Facebook’s advertising and marketing tools, allowing businesses to target specific audiences with their products and promotions. Traditional e-commerce platforms may offer similar features, but they may not be as tightly integrated with other marketing channels.
5. Data collection
Facebook commerce allows businesses to collect detailed customer data through their Facebook page, including demographic information, purchase history, and social media engagement. This data can be used to personalize the shopping experience and improve marketing efforts. Traditional e-commerce platforms may also collect customer data, but it may be more limited or difficult to access.
Additional Resources
Learn the difference between an e-commerce store and a marketplace, and discover how your small or medium business can benefit from both.
Learn how many types of Facebook ads are available and which one you should choose for.
Sell Products on Facebook MarketplaceLearn how to sell products on the marketplace. It’s easy and free, and it is the best way to sell second hand products.
Final Words
If you’re a small or medium business owner looking for a new way to sell your products, Facebook Commerce might be just what you need. By setting up a Facebook Shop, you can reach a huge potential audience, connect with customers, and increase your sales.
