Facebook recently announced the E-Commerce move on Facebook Shops. As it manages the content of small businesses Instagram or Facebook page, the company, which enables it to manage the stores they will open on Facebook Shops, guarantees a very efficient e-commerce infrastructure to businesses.
At this point, businesses will be able to contact the customer through every channel, even with WhatsApp, Messenger or Instagram messages within Facebook. Thus, Facebook, Amazon, Ebay and Etsy will be able to rival platforms. With Instagram’s shopping features and Marketplace, Facebook will fold its income with Shops.
According to research by Deutsche Bank analysts, Facebook Shops is expected to bring an annual $ 30 billion income to Facebook with advertising fees and commissions.
Facebook earns 7.7 billion dollars in 2019 and $ 17.7 billion in the first quarter of 2020, while Shops is expected to increase its annual income by 50 percent.
This situation; Facebook, a company of $ 654 billion, is further growing and increasing its dominance in the market. When Instagram’s payment feature was published in April 2019, the same analysts announced that the shopping features on Instagram will incorporate up to 10 billion dollars by 2021. The fact that the audience addressed by Facebook addresses strengthens the estimation that income will increase to $ 30 billion.
In the note sent by Deutsche Bank to its customers, it was underlined that the Facebook Shop is expected to generate $ 30 billion with the commission and advertising revenues obtained through turnover. In the note, it was emphasized that Facebook Shops would expand the labeling and trading transactions of Instagram Checkout and offer businesses a more branded experience on a wider platform.
The note also emphasized that higher advertising pricing will emerge with the increase in commercial activity and said, “There are 140 million enterprises serving on Facebook, but only 8 million advertising. Allowing them to install catalogs; It means that more businesses are advertisers. In the longer term, when the number of masses increased, when it provides more advertising volume and improves the e-commerce set, the rates will increase even more. “
With this feature, which was published during Facebook’s spandem, it was aimed to help businesses more. With Facebook Shops, the aim can be explained as increasing the sales of businesses, but it can also be considered as winning new advertisers in the long term.
Stage Media
01-01-1970 02:00:00