Facebook continues to upgrade its shop function and deepens its presence in the e-commerce market

Apple's recent app tracking transparency plan will affect Facebook 's advertising capabilities, prompting Facebook to increase its investment in the e-commerce field. These changes will have an impact on e-commerce sellers who rely on Facebook for traffic .

As the world's leading social media platform, one of Facebook 's core businesses is advertising and traffic generation . By pushing highly targeted sales ads and user-generated content to audiences , its operating income in the second quarter of this year exceeded US$12 billion.   However , the popularity of Apple 's app tracking transparency program has made it more difficult for Facebook and its advertisers to track user data , prompting it to begin expanding beyond advertising.

Facebook CEO Mark Zuckerberg pointed out in a recent earnings call that e-commerce is the most logical extension of Facebook's business.

Currently, Facebook has established partnerships with more than 7 million businesses . Many small and medium-sized businesses regard Facebook as an important part of their business, such as acquiring potential customers .

For a long time, companies have used Facebook to drive traffic and direct Facebook users to their own brand websites or independent sites, such as the Shopify independent site that has cooperated with Facebook .

E-commerce is not a new topic for Facebook . The social media giant has previously launched the " Shops " feature on Facebook and Instagram to expand into the e-commerce field .

At present, the annual sales of e-commerce in the United States are about to exceed 1 trillion US dollars. For a company of Facebook 's size, e-commerce is undoubtedly one of the businesses that can truly generate high profits .

Zuckerberg expressed his greater ambition in the e-commerce field during the conference call. He hopes to allow users to complete the shopping process on the Facebook platform , rather than flowing from the Facebook platform to brand websites or Shopify independent sites .

Now , Facebook has 1.2 million stores on Shops . Shopify has 1.75 million independent websites . It can be said that Facebook has enough capabilities to compete with leading e-commerce platforms in the field of platform e-commerce .

What does this mean for Shopify ?

Currently, Facebook may be the largest source of traffic for Shopify independent merchants , and Apple 's transparency program has encouraged Facebook to invest in its own commerce platform and shift transactions from Shopify to Facebook .

The e-commerce market is expanding year by year , and it may be large enough to satisfy both Facebook and Shopify , but Facebook's actions in the e-commerce field will still have an impact on Shopify. Shopify 's e-commerce sellers should pay close attention to the situation of Facebook Shops and pay attention to Apple's transparency plan, because this will be a far-reaching chain reaction .

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