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Leveraging Facebook Shops for Online Sales: A Comprehensive Guide

Is there a superior platform for presenting your products and engaging with customers than Facebook? With its potent e-commerce feature, Facebook Shops, you can establish a seamless shopping experience for your audience, elevate your online sales, and elevate your business to new heights. In this blog post, we’ll delve into the advantages, features, and steps to create a Facebook Shop. Whether you’re a seasoned e-commerce entrepreneur or just embarking on your online venture, get ready to explore the extraordinary opportunities that await you on Facebook Shop!

What is a Facebook Shop?

A Facebook Shop is a social commerce feature provided by Meta. It functions as a digital storefront where businesses can exhibit and vend their products directly on Facebook. They have the ability to construct an aesthetically pleasing and well-organized display of their products, complete with product descriptions, pricing, and images. Once inside the shop, customers can peruse the products, locate what they desire, and make purchases effortlessly.

A Facebook Shop example | Credit: Meta

Facebook Shop is a social commerce feature offered by Meta that empowers businesses to present and sell their products directly on Facebook. It acts as a virtual storefront where businesses can establish a catalog of their products or services, enabling customers to browse, explore, and make purchases without departing the Facebook app or website.

Facebook Shop additionally offers several features to enrich the shopping experience. This includes product tagging in photos and videos posted on your Facebook Page, a search function for seamless product discovery, and customer reviews. Lastly, products, collections, and promotions can be added, removed, and arranged as per your requirements. If you’ve never encountered a Facebook Shop, we’ll clarify where you can locate them next.

Where to Find Facebook Shops

Customers can find Facebook Shops on a business’s Facebook Page, Instagram profile, Instagram ads with product tags, or shoppable content in their Feed, Stories, and Reels. Once inside a Facebook Shop, they can effortlessly explore diverse product categories, view product details, add items to their cart, and proceed with the checkout process.

On top of Facebook Shops, Meta has also introduced Instagram Shops, which can be discovered on Instagram Explore. Both Instagram and Facebook Shops are managed within Meta Commerce Manager. So if you have Shops on both Facebook and Instagram, your products can be visible on both platforms.

Facebook Shops can even be found on Facebook Shop ads

Customers can discover company Shops on a business’s Facebook Page, Instagram profile, Instagram ads with product tags, or shoppable content in feed, Stories, and Reels. Once inside, they can easily explore different product categories, view product details, add items to their cart, and proceed with the checkout process. Facebook Shops can even be found on Facebook Shop ads. While in the past it was possible to display Meta Shops (Facebook and Instagram) on the WhatsApp Business App, the default WhatsApp social commerce tool is now WhatsApp Catalogue, a mobile storefront that you can manage in the WhatsApp Business App.

Now, you might be wondering how customers can complete a purchase in Facebook Shops. You’ll find the answer in the following section.

Facebook Shop: Checkout Methods

When it comes to checkout methods for your Facebook Shop, you’ll encounter three possible options: Website checkout, Messenger checkout, and in-app checkout.

With website checkout, customers are redirected to the business’s external website to complete the purchase. When a customer selects a product and proceeds to checkout, they are taken to the business’s website to finalize the transaction.

Meta Pay allows customers to transfer money directly within the Messenger app in the US and Thailand. Customers can initiate the purchase process, select products, and complete the transaction seamlessly within the Messenger conversation.

Facebook Shop checkout methods

Finally, businesses in the US have access to the in-app checkout feature, which enables customers to complete their purchases without leaving the Facebook app. The entire transaction, including payment, can be conducted within the Facebook Shop interface, providing a seamless and convenient shopping experience.

Is Facebook Shop free? While creating one doesn’t cost money, you’ll incur certain fees, which we’ll explain next.

Facebook Shop: Costs Involved

Businesses will be charged a processing fee for every order. The exact amount of the fee will vary depending on how the business onboarded to Facebook Shops and the transaction type.

If you have onboarded to Shops via the Facebook and Instagram app on Shopify, Shopify will directly charge you the processing fee for any orders made through Meta. This applies to Shopify merchants who use Shopify Payments for their online store.

The amount charged by Shopify will be the same as what you are charged for orders made on your online shop. However, using Shop Pay for third-party gateways via Shopify will not impact your website’s processor or web order fees.

Facebook Shops: Processing fees by Shopify and Meta

Things work differently for businesses that onboard to Shops via Commerce Manager. When you make a sale, a processing fee is automatically deducted from your payout. This amount varies based on the transaction type, as seen in the image.

This processing fee covers Meta’s service costs, and you’ll keep the rest of your earnings. Now that you know how Facebook Shops work, we’ll discuss the benefits of using a Facebook Shop.

Why Set Up a Shop on Facebook

There are a few reasons why both businesses and customers benefit from using Facebook Shops.

Facebook is a widely used social media platform with billions of active users. By setting up a Facebook Shop, businesses can reach a large audience, enhance their online presence, and increase brand visibility.

With the majority of Facebook users accessing the platform through mobile devices, having a Facebook Shop ensures that your products or services are easily accessible to mobile users. It allows for a smooth shopping experience within the Facebook app, increasing convenience for potential customers.

Why set up a Facebook Shop

Facebook Shop allows businesses to sell products directly through the platform. Customers can browse, select, and purchase items without leaving Facebook, simplifying the buying process and potentially boosting conversions.

This messaging functionality is integrated into the shopping experience, allowing customers to seek assistance, ask questions, or clarify product details before purchasing.

Because of the mentioned benefits, many businesses do not hesitate to use Facebook Shops to sell online. If you’re looking for inspiration, we’ll run you through some real-life examples.

Businesses Using Facebook Shops with Great Results

In this section, we’ll introduce you to Zimba and Pink Tag Boutique, two companies that have seen success using Facebook Shop to boost sales.

How Zimba Boosts Sales with Facebook Shop

Zimba, a teeth-whitening brand, eagerly embraced Facebook Shops to expand its distribution channels and connect with customers on Facebook and Instagram. With an existing presence on these platforms and a Facebook catalog, setting up the Shop was straightforward for Zimba.

Customers can easily discover Zimba’s Shop through various channels such as their Facebook Page, Instagram profile, Stories, and ads. The shopping experience was seamless, allowing users to browse, add products to their cart, and complete orders within the app itself.

Zimba’s Facebook Page Shop

Additionally, customers had the convenience of messaging Zimba for support through Messenger or Instagram DM. Shortly after implementing Facebook Shops, Zimba noticed a significant increase in incremental purchase orders, highlighting the value of this feature.

During the evaluation period of July 1 to August 31, 2020, Zimba assessed the impact of Facebook Shops using data from Commerce Manager and Facebook Ads Manager. The analysis revealed that Zimba received 1,200 additional orders through Shops.

Moreover, customers who made purchases through Shops had an average order value that was 6.7% higher compared to those who bought products directly from the website.

How Pink Tag Boutique Boosts Sales with Facebook Shop

Pink Tag Boutique, a fashion brand, collaborated with a digital advertising agency to optimize its presence on Facebook. They established a Facebook Shop with integrated checkout, enabling customers to directly make purchases on the platform. Utilizing photo ads and product tagging, they enhanced product discovery and browsing. Moreover, they introduced Facebook Live Shopping, allowing viewers to purchase featured items during and after live broadcasts.

Pink Tag Boutique’s Facebook Page Shop

The inaugural live shopping event proved to be a successful product launch, drawing in purchases both during and after the broadcast. Evaluating the results from October 1, 2020, to February 20, 2021, Pink Tag Boutique saw a notable increase of $44,448 in sales through Facebook Shops.

They received an additional 804 orders via the platform, with buyers on Facebook Shops displaying a significantly higher average order value of $65.79 compared to $39.65 for website purchases. These outcomes underscore the positive impact of implementing Facebook Shops for Pink Tag Boutique’s business.

Now that you’re familiar with how Facebook Shops function and how businesses leverage them for sales, it’s time to learn how to establish your own Facebook Shop.

How to Create a Facebook Shop

To create a Facebook Shop, you’ll need a Meta Business Account, Facebook Page, and a Facebook Catalog. If you don’t have the last two items yet, don’t worry, as you can create both during your Shop setup.

You’ll also need full control of the Meta Business Account that owns your Facebook Page and Catalogue. So make sure you can Manage permissions for both the Page and Catalogue.

To make your shop visible on Instagram, you’ll need an Instagram Business account, which must be connected to your Meta Business Manager or Facebook page. To start with the creation of your Facebook Shop, open Commerce Manager.

  1. Click Get Started.

How to set up Facebook Shop: Click Get Started

  1. Select Create a Shop.

How to Create a Shop on Facebook: Click Create a Shop

  1. Click Next.

How to set up a Facebook Shop: Click Next

  1. Choose a checkout method.

How to add Shop on Facebook Page: Choose a checkout method

  1. Select a Facebook Page or create a new one.

How to set up a Facebook Shop: Select or create a Facebook Page

  1. Connect a business account or create a new one.

How to set up a Shop on Facebook: Connect or create a business account

  1. Select or create a catalogue.

How to add Shop in Facebook Page: Select or create a catalogue

  1. Add countries you deliver to.

How to create a Facebook Shop: Add countries you deliver to

  1. Review all the information and click Finish setup.

How to create a Facebook Shop: Finish setup

The Facebook Shop approval process can take up to 48 hours. In the meantime, you can manage your catalog items in the Meta Business Manager. Or you could get started with a business messaging platform like Leadshouse to take customer communication to the next level.

Now that you’ve listed your products and services on your Facebook Shop, you can anticipate more sales and inquiries from customers.

If you’re a large business that needs advanced messaging features to handle high volumes of messages, then you’ll need to connect Facebook Messenger to Leadshouse. Let’s discuss how Leadshouse benefits businesses with Facebook Shops.

Facebook Shops: Extend the Messaging Window with the Human Agent Tag

Facebook Messenger’s 24-hour messaging window is sometimes limiting. For example, if a customer contacts your support team on Friday and your business closes on weekends, the messaging window will likely end before the problem is solved.

Other issues are simply more complex and take longer to be identified and solved in only 24 hours.

Leadshouse is one of the selected platforms that enable the Human Agent Tag, which extends the messaging window from 24 hours to seven days. You’ll have access to it once you connect Facebook Messenger to Leadshouse.

Facebook Shops: Connect All Your Messaging Channels to a Single Inbox

Your customers probably message you from other popular messaging channels besides Facebook Messenger. For example, if you also have an Instagram Shop, you’ll receive customer messages through Instagram DM too.

Therefore, you’ll need an omnichannel inbox to consolidate all messaging channels in a single platform for efficiency.

When using several channels for customer communication, it is common to end up with siloed conversations across different channels.

Leadshouse’s Contact Merge tool has been purposely designed to tackle this issue. By merging duplicated customer profiles, you’ll be able to create a single customer story and message history.

Facebook Shops: Automate Daily Operations with Workflows

To ensure the best shopping experience, it is important to give customers prompt attention when they reach out to you.

While handling low volumes of conversations manually is not a problem, it is hard to guarantee efficient and consistent support when the number of inquiries increases.

In these cases, an automation builder like Leadshouse’s Workflows can reduce agent load and systematize all business operations. For example, you can build chat routing Workflows to route customer conversations from your Facebook Shop to specific teams according to your routing logic.

Similarly, build automatic assignment Workflows to pass the Contact to available agents following your automatic assignment logic.

Facebook Shops: Integrate Seamlessly with Other Software

Leadshouse allows you to integrate your messaging inbox with various tools such as CRMs, databases, and email marketing platforms for enhanced convenience and efficiency.

The platform is designed to seamlessly integrate with your existing software stack to reduce agent load, keep your customer data updated, and provide a great customer experience.

Zapier and Make.com have native integrations with Leadshouse, meaning you can connect to thousands of apps without coding. If you don’t use the aforementioned services, use Leadshouse Webhooks to integrate with other apps and automate actions in response to events occurring in Leadshouse.

Facebook Shops: Keep Track of Key Metrics with the Reports Module

To track the quality of your Facebook Messenger conversations and the performance of your customer-facing agents, Leadshouse comes with a full-fledged Reports Module. Use it to track key metrics such as response and assignment times.

By making use of the different tabs and filters, managers can identify areas for improvement and find insights to keep improving their customer communication.

In conclusion, Facebook Shop offers an incredible platform for businesses to showcase their products and connect with customers.

By using Facebook Shop for sales and services on your Facebook Shop, you can anticipate more sales and inquiries from customers, and effectively enhance both their sales performance and customer support capabilities.

If you are looking for the best customer conversation management software, visit our website today!

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