Facebook launches platform for online stores in Corona crisis

In addition, there is "Live Shopping": the possibility to sell goods in a video livestream. The project is intended to help smaller companies in particular survive the Corona crisis, Facebook's founder and chief executive Mark Zuckerberg told Deutsche Presse-Agentur.

"It's something I've been interested in for a while, but when Covid-19 came along, it became really critical and urgent." Many smaller companies - whose ads are important to Facebook's business - were facing extinction and looking for a way out in online business, he said. That's why Facebook Shops development was "dramatically accelerated," he said.

Data on customer behavior

For Facebook itself, the shopping platform will bring data on customer behavior - similar to other offerings from the online network, Zuckerberg pointed out. "We'll see which stores they interact with, what products they're interested in, what they buy and so on."

Currently, however, there is no function for sharing this information with friends, and no one else except the user, the store and Facebook gets access to it. With the data, however, the online network could continue to perfect its lucrative ability to bring advertisers to the right addressees for their ads.

Fees for payment functions

Setting up the Facebook stores will be free of charge for merchants, Zuckerberg said. Fees would only be charged for payment functions, for example - "but that's largely about covering our costs". Facebook expects that advertisements from merchants will increase the online network's revenues.

"Our advertising system works with auctions, where a company bids as much as an ad is worth to them. If we can make an ad more valuable because someone who clicks on it is more likely to buy something, we will make more money from advertising," he said, describing Facebook's thought process.

Facebook also wants to score points by linking its various services. For example, users will be able to contact an online store via WhatsApp, Facebook Messenger or Instagram's chat function. If a credit card is stored in the Facebook system, you can pay directly with it.

The aim is to make it easier for people to try on cosmetics, clothing or glasses, for example, with the help of augmented reality. Virtual content on the display is mixed with real images. For example, makeup colors can be displayed on the face or pieces of furniture in the room. The online network is also working on integrating bonus points programs.

Some categories, such as guns, will not be available on the platform, even if their sale would be legal, Zuckerberg said.

Competition with Amazon and Ebay

Facebook, with its 2.6 billion users and well-oiled online advertising system, could become a powerful competitor even to major commerce platforms like Amazon and Ebay. The shopping initiative is at the same time likely to attract the attention of regulators - like anything a company Facebook's size does, Zuckerberg said. "But I don't think our response can be to not do anything new."

Many people and businesses wanted to use Facebook's products and relied on them. "We have a responsibility to innovate, and I think we're one of the institutions in the world that can really help." (SDA/hae)