US, WASHINGTON (ORDO NEWS) — Facebook introduced its own platform for online trading Facebook Shops – a direct competitor to Amazon and eBay. Mark Zuckerberg accelerated its launch to take advantage of the boom in the online shopping market.
The new service is a direct competitor to Amazon and eBay, who are the dominant forces when it comes to online shopping. This is primarily due to the wide range of goods they offer as well as convenient online browsing and special offers through websites like Raise. Though Shops has been emphasized by the Financial Times to be able to compete with these two giants, there are many factors they have to take into account in order to successfully compete.
One front that they are hoping to secure is that of social media. Shops allows sellers to create digital storefronts and it also works simultaneously with Facebook and Instagram. In the future, the company also promises to introduce the ability to make purchases through chats on WhatsApp and instant messengers of its social networks. The company emphasized that it focuses on sellers of various sizes – “from the owner of a small business to an international brand.” The launch of the Facebook platform began on Tuesday, and it will become more widely available “in the coming months”.
The new Facebook service challenges Amazon and eBay because the social network has 2.6 billion users who can become customers, the Financial Times emphasizes. At the same time, Facebook CEO Mark Zuckerberg told the newspaper that he did not try to copy Amazon’s experience and would prefer to work with services such as Shopify, which helps small businesses create online stores and deals with analytics and payments. In the future, Facebook Shops may also become a competitor for food delivery services – Zuckerberg noted that it would be “good” to place offers of restaurants and order services on the platform. He added that his company will also be engaged in the implementation of delivery and logistics services.
Facebook will focus on launching a new service in developed regions such as the United States and Western Europe, where the company has the necessary resources to study information about sellers, Zuckerberg said. He suggested that in the future, Facebook’s Shops will have a system for evaluating sellers.
Zuckerberg also told FT that he had accelerated the launch of Shops to take advantage of the boom in the online shopping market due to the coronavirus pandemic. He noted that the company will be able to use user data to improve its advertising service and sell its services more expensive. Zuckerberg “hopes” that when users examine the products offered in stores, the company will use the data about it to better display recommendations. Interviewed FT analysts also suggested that Facebook has long-term plans to launch a super application that combines many features.
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