As e-commerce continues to explode post Pandemic, ease of payment is becoming, a key part of increasing market share, and E-commerce giant Shopify has thrown it’s hat into the ring to hit back at Amazon where it counts.
On Tuesday, Shopify gave word that its one-click checkout service, Shop Pay, will be available to all merchants selling on Google, as well as Facebook and Instagram Shops, even if those brands do not have a Shopify store. The new offering comes after Shop Pay was made available to Shopify users selling on Facebook back in February, and available to Shopify merchants selling on Google in May.
This is the first product that Shopify has made available to merchants who don’t use Shopify to manage their store, and signals part of an ongoing battle with Amazon to help woo brands onto their platform.
While there are over 1 million Shops globally on Facebook and Instagram, Amazon is the undisputed E-Commerce giant, with a little over 3 million Amazon sellers across North America (and over 6 million globally), according to Marketplace Pulse, an e-commerce data firm.
According to Shopify, by the end of this year, Shop Pay will be available to all one million merchants across both Facebook and Google. The option will roll out to U.S. Facebook merchants by the end of July 2021, and Google merchants by the end of the year.
With so many DTC and E-Commerce brands at odds with recent changes to Facebook and Google’s privacy policies (most notably after the release of Apple’s iOS 14.5), this move by Shopify could create new opportunities for online retailers looking to regain some trust on those platforms and better compete with Amazon online. But for the privacy minded, be aware: Facebook and Google will receive data to complete orders, including email address, shipping address, and credit card numbers as part of their checkout flow.
Why should I use Shop Pay?
With a friction-less customer experience key to brand growth now more than ever, Shopify is looking to expand in this market, using their trusted name and in-built payment ecosystem to be the solution to retailers woes on Facebook and Google.
The company claims that Shop Pay is 70% faster than a typical checkout process, and has a 1.72x higher conversion rate than manually entering information.
By making Shop Pay widely available on Facebook and Google, it could help brands using those platforms catch up with competitors on Amazon, who’s long running one-click buying option has been shown to greatly reduce cart abandonment and drive sales.
Why should I use Shop Pay to sell on Facebook / Instagram / Google?
According to BigCommerce, “As of October 2018, more than 800 million people globally use Marketplace each month to browse, buy, or sell items, giving retailers an opportunity to drive discovery and sales of key products in a place where their consumers are already shopping.” Google claims that more than one billion shopping sessions happen on the site daily.
That’s a LOT of shoppers!
But when it comes to brand growth, using Shop Pay in connection with Facebook Marketplace gives you 3 major opportunities your brand may be missing:
1. Extended reach.
Retailers on Marketplace will be able to get their brand and products into the marketplace and increase those important touch-points on the customer journey. You would hate to miss that “buy now” impulse purchase or final consideration by sending a customer of platform.
2. A Personalized customer experience.
Facebook Marketplace surfaces products relevant to consumers, helping your business find the right customers. This helps ensure that your product is being seen by the right audience, ultimately resulting in an increased opportunity that the interaction will lead to a purchase, and providing a great customer service opportunity though using Messenger.
3.) Friction-less Checkout
As stated above, a friction-less checkout using Shop Pay can help almost double your conversion rates and reduce abandonment to help spur sales in an easy to execute, easy to integrate Multichannel solution. Many customers may balk at giving Facebook their data, while Shopify, a much more “trustworthy” partner, could help ease their payment anxieties.
Looking to help boost your brand’s E-Commerce growth? Abacus is the partner you’re looking for. Let’s talk.