Facebook launches e-commerce tool 'Shops'

Facebook announced the company will launch a new shopping feature that allows businesses to sell products on the social media platform. Yahoo Finance’s On The Move panel weighs in.

Video Transcript

ADAM SHAPIRO: One of the things we're also watching is the news from Facebook that they are going to launch Shops. Now this will allow businesses to sell products creating a single online store accessible via either the Facebook interface or Instagram.

Akiko Fujita, are they a little late to the game on this?

AKIKO FUJITA: They may be late to the game a little, but this is really part of Mark Zuckerberg's grand ambition. I mean, he has always wanted to get into the e-commerce side of things. And, you know, as cynical as it sounds, this disruption in business brought on by the pandemic has created this perfect opportunity for Facebook.

Now, you also want to think about revenue channels that can come in. I think we're talking about obviously potentially payment side of things. There is a fee related to the checkout as well. So advertising on top of all that certainly allows for new channels of revenue, but I think this is just the very latest step for Facebook in becoming the super app it's always wanted to be.

JARED BLIKRE: Guess what? I was unmuted. I [INAUDIBLE]. I've said that before.

Just look at the chart. Facebook is at an all-time high now. Just achieved that status. A lot of the other FAANG stocks are there.

Just imagine-- think about the adversity that they've overcome. Of course they are going to benefit from COVID, but they've shook off a lot of the regulatory and antitrust complaints. Those have kind of taken a back seat.

Yeah, I agree with Akiko. I don't think it matters that they're late to the game. They're number one in social media, and they are the juggernaut. People are going to be watching videos. You're going to be able to click on a little icon while you're in a catatonic state, buy things. I think it's a great way for people to be separated from their money.