Facebook introduces shops with the aim of bringing online kirana stores.
Facebook Inc is introducing Shops, a marketplace that will allow businesses to view and sell goods on the sites of the world's largest social network, Chief Executive Mark Zuckerberg said Tuesday.
The push in setting up e-commerce services parallels last year's Facebook introduction with restricted shopping choices on the Instagram photo-sharing site and WhatsApp chat service. Company leaders wager to make the sites more market oriented, even though consumer development declines, would produce fresh ad revenue.
Facebook shops would bind together at least some of those activities, enabling companies to set up a common online store that can be reached through both Facebook and Instagram.
Zuckerberg has said the biggest social network in the world will collaborate more closely with Shopify on product development and with seven other online trade sites. He had Tobias Lütke, CEO of Shopify, joining him in a live streamed video announcing the partnerships.
Following the initial introduction of Facebook Shops, shares of Shopify fell, but rebounded after Lütke 's presence. In the afternoon U.S. exchange, shares in both firms rose by more than 2 per cent.
Like with many e-commerce services provided by Facebook, shops would be accessible for companies to browse in the hope that this would increase customer interest and ad revenue.
"The ads are our business model here," Zuckerberg said. "We realize that shops are important to companies rather than paying companies for them. They 're going to pay higher on advertising in general and we're going to raise it this way finally.