Facebook Helps Entrepreneurs Move Their Shops Online -- for Free

Automatic TRANSCRIPT

From wondering. I'm David Brown. And this is business wars daily on this Monday. May Twenty Fifth Happy Memorial Day last week. Facebook made a big announcement for small business. Owners entrepreneurs will soon be able to create virtual storefronts on facebook and instagram using a new feature called facebook shops. The idea facebook. Ceo Sheryl Sandberg says is to help all small businesses but especially the struggling ones according to a recent survey conducted by facebook and the Small Business Roundtable one third of all small businesses in the US have already closed their doors. Another eleven percent say they will fail. Should the economy remain mostly closed for much longer giving continuing social distancing and stay at home orders? Transitioning to online sales may be the only path forward for most smaller companies in its livestream announcement facebook. Ceo Mark Zuckerberg said. We're seeing a lot of small businesses get online for the first time but moving online and especially to mobile friendly. Commerce isn't always easy. The process can be expensive and complicated but facebook. Says it wants to help entrepreneurs solve those problems therefore setting up a new storefront on shops will be free and Sandberg claims. It's easy to. She says it'll only take minutes. The new storefronts are intended to allow merchants. Not just to show their wares but to conduct transactions as well a business owner who is linked. Her existing website to facebook shop will be able to take payment on her website. Alternatively she'll be able to check out customers right on facebook or instagram for a small fee to help users. Simplify what can be complicated back in mechanics. Facebook is partnering with Shop Afyon and other ECOMMERCE engines shop which is based in Canada as well known as the merchant platform for millions of small online businesses behind the scenes. The story that facebook is telling that it's here to help is not surprisingly more nuanced. The new shops feature represents facebook wholehearted foray into commerce with brick and mortar stores restaurants closed online sales of sword and facebook. Once in Zuckerberg told the Financial Times at facebook shops had already been under development. The company sped up its launch to take advantage of the spike in online shopping observers. Say The new feature pits facebook against Amazon and ebay based books partnership with shop of. I should help as we reported right here just a couple of months ago shop. If is aggressively competing with Amazon last year at began investing five billion dollars. Over five years to build a nationwide fulfillment network VAT network is intended to help. American merchants offered two day shipping all over the country. You know just like Amazon and that could be an answer to one problem savvy. Merchants will ask about selling directly from facebook and INSTAGRAM. Who'LL SHIT MY products? Facebook won't but shop if I and other logistics partners will Voila problem solved but let's not forget another albeit smaller. Ecommerce rival Oetzi. The company has made it easy for Solo artists and small companies to build online stores from their bedrooms and Kitchens Oetzi. Share price is up ninety percent this year. According to The Wall Street Journal and REVENUES IN THE FIRST QUARTER. Were double what they were three years ago. The paper reported at sees Growth Spike. Especially during the lockdowns has made one thing extremely clear. Just how many millions of soloists are interested in and capable of starting successful businesses online even if facebook is late to this war for online customers. The company has one significant weapon that Amazon Ebay. Oetzi don't have two point six billion monthly users. It's intuitive to see how shops owners will be able to leverage their facebook and instagram followers to boost sales on shops. According to the verge shops will be found on facebook pages or instagram profiles. Dunkelberg says merchants will also be able to let customers. Virtually try on products like sunglasses and makeup by using reality tools. According to the Wall Street Journal so facebook is giving shops away for free. How will it make money while the answer is simple? Advertising Sheryl Sandberg Toll Madman Jim Cramer that one hundred sixty million small business owners already used facebook's free business tools eight million of them already purchased. Facebook ADS Zuckerberg assumes that if facebook shops owners find the storefronts valuable. They'll want to bid more to buy facebook ads according to NPR. That's where the quote real money will come from. According to the Motley fool too many facebook shops is

Coming up next