Facebook launches new shopping feature for small businesses

In a bid to help struggling small businesses during coronavirus pandemic, Facebook has introduced with free tools for creating online "Shops" to help set up a single online store for customers to access on both Facebook and Instagram.

Facebook Inc is launching Facebook Shops, a service that will allow small businesses to display and sell their products on the social network's platforms, Chief Executive Officer Mark Zuckerberg said on Tuesday.

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A checkout feature will enable in-app purchases, while a more deeply integrated messaging feature will allow customers to chat with businesses through WhatsApp, Messenger or Instagram Direct.

"The primary focus is to ensure small and medium size businesses have presences online and survive the current situation," Facebook director of product management George Lee said during a press briefing on the new product.

Businesses have an option to buy Facebook ads to direct customers to their online shops. Sales can be consummated at websites off the social network.

The move to build up e-commerce offerings follows Facebook’s launch last year of limited shopping options on photo-sharing app Instagram and messaging app WhatsApp.

Company leaders wager making the platforms more business-friendly will generate fresh ad revenue, even as user growth slows.

Zuckerberg also said the world’s largest social network would be working more closely on product integrations with Shopify and seven other online commerce platforms going forward. He had Shopify CEO Tobias Lütke join him in a livestreamed video announcing the partnerships.