Facebook’s E-Commerce Bet Stumbles

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Facebook’s E-Commerce Bet Stumbles
04 May 2022
4 min read

News Synopsis

Meta Platforms Inc, developed an e-commerce service in 2020 as people have more opportunities to shop from home and the company faced changes in the digital advertising market. Two years later, employees, former executives, and retailers say the department is still a work in progress.

Some of the retailers complained that the service is missing basic components including the ability to display products n different colors and sizes if they are not sold directly through Facebook and Instagram. However, others see the promise of connecting with shoppers through the large user base of Facebook and Instagram.

Meta started ramping up its efforts in e-commerce in the early days of the pandemic and launched features called Facebook and Instagram Shops in May 2020. The shops allowed brands to post their catalogs on Facebook and Instagram while some used it to direct users to their websites. 

Meta hasn't reported the results of its shopping business, but CEO Mark Zuckerberg said last week that the company has recently seen a decline in e-commerce usage. For many established retailers and brands, Facebook and Instagram shops provide a fascinating glimpse into the future. 

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