Facebook have revealed they are currently testing a buy button which will allow users to make purchases through advertisements or posts on brand pages. It is being tested in America with a small number of SME businesses.
This service means that user’s will be able to make purchases without leaving the Facebook site, by entering their card details. They have promised that they have built this button with privacy in mind and will not share information to other advertisers. It will be available on mobile and desktop versions of the website.
This is another opportunity for Facebook to make money: it charges for the placement of the advertisement but then also takes a percentage of the purchase made from the advertisement. They’re not currently taking any money from the buy button while they are testing it..
With ecommerce it always comes down to the conversion rate. Two main losses of ecommerce are getting the customer to the checkout screen and to finally make them enter their card details. Facebook has cut out both these steps with the buy button, by cutting down the time and effort of buying a product. Facebook could get more people making ecommerce purchases.