Facebook has unveiled its plans to launch a new shopping service, connecting users with businesses around the world. Users will have the ability to browse products, message businesses to arrange purchases and buy products directly through an online checkout feature.
The new Facebook Shops is a challenger for the likes of Amazon and eBay. The Covid-19 outbreak has created a boom in online shopping, where millions of consumers are trying to find refuge due to lockdowns and social distancing plans. This makes the 2.6 billion social network users potential buyers or sellers, which could make Facebook a huge player in the ecommerce market.
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Facebook is planning to profit from user data, raising concerns over the security of the new platform
In order for Shops to be not only profitable, but also connect sellers and buyers, the company must reassure users that their data will be well-protected.
Through Facebook Marketplace users are able to perform simple tasks in terms of buying or selling products; however, when the more sophisticated Shops is introduced, sellers and buyers will use more information to conduct a transaction, information which could be potentially breached. This suggests a need to introduce better and higher quality data protection measures for its users alongside its new platform.
The successful launch of Facebook Shops will mark the road to entering new markets
Entering the ecommerce market will be only the beginning for the social media giant. Through a well-established and well-protected online shop, Facebook could venture into food delivery services, connecting local restaurants with its users.
This will not only create easy access for its users, but will give restaurants the opportunity to advertise their products directly to customers. However, it all comes down to how secure the new Facebook Shops will be and this can only be decided over the course of time.
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By GlobalData
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