May 18, 2022

Meta plans to sell products through Facebook and other apps next year –

Due to Apple’s new privacy policy, Facebook’s parent company Meta plans to launch sell more products directly through its Facebook, Instagram and Messenger applications from next year. Meta will prioritize investments in “on-premises commerce and shopping” in 2022. It will sell more products directly on its suite of apps, including Facebook, Instagram and Messenger. Dan Levy, vice president of advertising and business platform at Meta, said the the company hopes its applications will become a major destination for businesses. He said

“This is our priority area and our most important area of ​​investment. We need to work on the vision for our app to become the primary business destination and move forward ”.

According to Levy, Meta can sell companies’ products through Facebook stores, Instagram stores, and other digital stores. It will be very relevant to the American manufacturers of lifestyle brands.

In reality, Meta has been experimenting with e-commerce since 2015. At this time, the company introduced a group of buyers and sellers. In 2020, due to setbacks in advertising activity, Meta launched digital storefronts Facebook and Instagram. Now, as the business enters the next chapter (metauniverse), e-commerce becomes a more important part of its revenue model.

Meta is still developing the “on-site” sales functionality

It is not yet clear what payment methods Meta’s digital store will use. However, it is likely to cannibalize some of Shopify’s business. A Meta insider said that the development of “field sales” aims to encourage companies to invest more in advertising. IIf the performance of “buy on site” ads is better than “get people to leave the site to buy products” ads, then 2022 will be a successful year for the company. The company hopes to convince people to buy products directly from Facebook or Instagram.

For Levy, in order to focus on the goal of users buying directly from the Meta app, he will do the following

  • Meta will not explicitly prioritize expanding into new markets such as the UK until at least 2023
  • It will not invest in business partners other than current partners
  • For the time being it will focus on American lifestyle merchants.

Furthermore, Meta will not invest in digital commerce “Meta Universe” until at least 2023. These changes are due in part to Apple’s privacy changes in iOS. The changes limit the amount of user information that applications can collect. Meta also acknowledged on its recent earnings conference call that this had a negative impact on its business. Levy said that the growth of “shopping on the spot” will be “help businesses feeling the pain of Apple’s iOS changes“.