Facebook is launching a new Page Shops platform for e-Commerce merchants looking to sell their products and services. It’s another step in the direction of online shopping for Facebook, as it adds another revenue stream.
Facebook already has a Marketplace where users can list their products for sale.
But unlike Marketplace, Facebook Page Shops seems to take a more direct aim at Amazon.
Amazon has long been the reigning champion of e-Commerce, albeit not without its fair share of controversy and complaints.
Complaints mainly from 3RD party sellers like myself, who are at the mercy of Amazon’s rules and regulations.
It’s not uncommon to hear about Amazon shutting down a listing over a customer complaint, whether that complaint was warranted or not.
Facebook Page Shops
Mark Zuckerberg took to a live stream to announce his new project.
He is trying to help in the recovery efforts amid the current pandemic that has taken hold of the global economy.
Many small business owners are facing difficulties, while others have shut down entirely.
It’s hard to say at this point if Shops will have any significant impact against Amazon.
More than likely, it won’t for now, because Amazon is such a vast, massive company with a massive digital footprint.
People are so addicted to Amazon, and online shopping it’s on another level.
You have to give credit to Amazon, though, because it has made online shopping more of a thing. More people are inclined to shop online vs. a decade ago, mostly due to Amazon and its Prime Membership.
Page Shop Fees
One of the most important things to keep in the forefront of your mind if you’re deciding to sell on a platform is those fees.
eBay and Amazon are known for their platform fees, which can add up.
Facebook is taking a healthy 5% cut from every transaction, which isn’t too bad.
The selling fee is 5% per shipment, or a flat fee of $0.40 for shipments of $8.00 or less. You keep the rest of your earnings.
Compare that to Amazon: Individual sellers pay $0.99 for each item sold on Amazon, in addition to variable closing fees ranging from $0.45 to $1.35. Professional sellers pay variable closing fees and referral fee percentages ranging from 6% to 25% (an average of 13%) plus a monthly subscription charge of $39.99 for your Professional account.
Mind you, that Amazon lets you ship your inventory to their fulfillment centers where their workers are packing and shipping your orders, which is a huge time saver.
Am I going to jump on Facebook’s Shops? I’ll give it a try and see how it goes.
As with any new product or services, there’ll be a learning curve.
It will be interesting to see how Facebook does against Amazon, eBay, and the rest.