The social media giant announced Facebook Shops on Tuesday, which will make listing products to Facebook and Instagram easier.
On Wednesday, the company’s shares jumped to an all-time high of $230.75 as investors immediately embraced the e-commerce initiative and predicted that it could add as much as $30 billion to Facebook revenue going forward.
In the future, the company plans to also allow businesses to sell products to customers through WhatsApp, Messenger and Instagram Direct.
The CEO explained that businesses will also be able to tag products during Facebook and Instagram live streams.
Facebook Shops comes as Facebook ramps up its efforts to support small businesses during the coronavirus pandemic.
The company noted that it’s working with partners like Shopify, BigCommerce and others to support small businesses. Shopify’s stock price was up more than 2% following the news of Facebook Shops.
Small businesses make up the vast majority of Facebook’s more than 8 million advertisers, Zuckerberg said on Tuesday. Even though Shops is free, it will encourage small businesses to remain actively engaged with the platform.
Since the pandemic began, the company has announced a $100 million program to support small businesses through grants and a way for small businesses to sell gift cards directly to consumers through Facebook.
According to Zuckerberg,Long-term, Shops and other e-commerce products could help Facebook drive more ad sales.
Our business model here is ads, so rather than charge businesses for Shops, we know that if Shops are valuable for businesses they’re going to in general want to bid more for ads