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How does Facebook checkout work?

How does Facebook checkout work?

Facebook checkout allows people to purchase products directly on Facebook without leaving the app. It provides a seamless shopping experience by enabling purchases directly within the Facebook news feed, Facebook Marketplace, Instagram shopping posts, and ads. Here’s a comprehensive guide on how Facebook checkout works.

What is Facebook checkout?

Facebook checkout is a feature that allows people to purchase products directly within the Facebook app, Instagram app, or Messenger without needing to visit an external website. It removes friction from the buyer’s journey by making the entire purchase process possible within the app itself.

Facebook checkout was first introduced in March 2019 and was limited to Facebook Marketplace at launch. It has since expanded to enable purchases from business pages and product tags on Instagram as well as Facebook & Instagram ads.

Facebook checkout uses the payment details people have stored on their Facebook account to complete purchases. This means users don’t need to manually enter their payment information when they want to buy something. Their saved payment method will be used automatically at checkout.

How does Facebook checkout work?

Facebook checkout works seamlessly within the Facebook or Instagram app. When you come across a product you want to buy, you simply tap the checkout button to enter the checkout flow.

You’ll be presented with a summary of your order including delivery and payment details. Facebook will automatically select the saved payment method associated with your account, so you don’t need to manually enter anything. After reviewing your order details, you can tap “Place Order” to complete the purchase.

Once the order is placed, you’ll see a confirmation page with the transaction details. You’ll also get an email confirmation with an order summary. The sellers can see your order details including shipping address within their Commerce Manager.

Key steps in Facebook checkout process:

  • Find a product to purchase on Facebook app, Instagram app, or Messenger.
  • Tap the checkout button on the product page or ad.
  • Review order summary including delivery address and payment details.
  • Confirm order by tapping “Place Order”.
  • Get order confirmation page and email confirmation.
  • Seller receives order details in Commerce Manager.

Where is Facebook checkout available?

Facebook checkout can be used to purchase products from the following places:

  • Facebook Marketplace – Buy directly from sellers without leaving your News Feed.
  • Shops on business pages – Discover and purchase products directly from brand’s Facebook Page or Instagram profile.
  • Product tags on Instagram – Shop tagged products on photos and videos in Instagram feed.
  • Ads on Facebook & Instagram – Tap checkout button on any product ad to purchase.
  • Fundraisers on Facebook – Donate or purchase merchandise from fundraisers directly.
  • Facebook Pay on Messenger – Buy items shared by businesses without leaving your chat.

So whether you come across an item on Facebook Marketplace, an Instagram shopping post, or a product ad – you’ll be able to checkout right there without interruptions.

What can you buy with Facebook checkout?

Facebook checkout allows you to purchase a wide range of physical products directly through posts, ads or business pages on Facebook and Instagram. Here are some of the products that consumers can buy:

  • Apparel – clothing, footwear, accessories
  • Home decor – furniture, kitchenware, artwork
  • Beauty – makeup, skincare, fragrances
  • Jewelry and accessories
  • Sporting goods – equipment, apparel, gears
  • Electronics – smartphones, laptops, speakers
  • Books, movies, music
  • Toys and games
  • Pet supplies
  • Groceries
  • And many more categories…

However, there are some restrictions on what can be sold via Facebook checkout. Any product that violates Facebook’s commerce policies cannot be sold using checkout features. Prohibited items include:

  • Weapons, ammunition, explosives
  • Tobacco, drugs, drug paraphernalia
  • Unsafe supplements
  • Unsafe baby items
  • Live animals
  • Adult products and services

How to set up Facebook checkout as a business

For businesses and sellers looking to enable Facebook checkout, here are the steps to set it up:

  1. Set up a Facebook business page – This will be the hub for people to find and purchase your products.
  2. Set up a Commerce Manager account – Commerce Manager allows you to manage your catalog and orders.
  3. Create a product catalog – Add all your products to the Commerce Manager catalog with details like price, inventory etc.
  4. Sync your catalog to your business page – Connect your Commerce Manager catalog with your Facebook business page.
  5. Turn on checkout – Enable Facebook checkout in Commerce Manager to start selling via checkout.
  6. Drive traffic to your shop – Promote your products through ads, posts, Instagram shopping and more.

Facebook checkout is directly integrated with Commerce Manager. So you need to use Commerce Manager to manage checkout inventory, orders, and fulfillment.

How does Facebook checkout integrate with payment?

Facebook checkout leverages the payment details people have already saved to their Facebook account. During the checkout process, customers don’t need to enter any payment info – their default card on Facebook will be used automatically.

Here’s how payment works:

  • People save their payment method such as debit/credit card to their Facebook account. This can be done via Facebook Pay.
  • The default payment card is selected automatically at checkout.
  • Customers can change the payment method before completing a purchase.
  • Facebook sends the payment request to the payment processor. It does not receive or store full card details.
  • Payment processor approves the payment and communicates transaction status to Facebook.
  • On successful payment, the order confirmation is sent to both customer & seller.

For checkout transactions, Facebook uses Stripe as the payment processor. Facebook lets Stripe handle all sensitive payment data. It sends limited transaction details to Stripe which facilitates the payment.

How does Facebook checkout handle shipping and delivery?

Facebook checkout fully integrates with supported shipping carriers to enable product delivery tracking. As a seller, you can choose to ship via USPS, DHL, UPS, FedEx or other supported carriers.

During checkout, customers select their shipping address. This is communicated to the seller via Commerce Manager.

Once the order is dispatched, sellers can use Commerce Manager to send shipment tracking details to Facebook. The tracking details are then communicated to the customers.

Customers can also view the shipment tracking details and current status directly within Facebook transaction history. This provides visibility into delivery status without leaving Facebook.

Facebook checkout also supports scheduled delivery dates. Sellers can set a preferred delivery date which buyers can confirm during checkout. Facebook shares this delivery data across all touch points – website, apps, ads etc.

Pros and cons of Facebook checkout

Here are some key benefits of using Facebook checkout for businesses:

  • Seamless native experience increases conversion rates.
  • Simplifies purchases by removing friction.
  • Buyers don’t need to manually enter payment and shipping information.
  • Payment is via saved debit/credit cards for faster checkout.
  • Enables selling products directly from Facebook and Instagram.
  • Syncs checkout inventory automatically with Commerce Manager.
  • Supports omnichannel fulfillment across web, mobile, and in-store.

Some potential drawbacks to evaluate:

  • Customers may have security or privacy concerns around purchases on Facebook.
  • Need to send buyers outside Facebook for support issues.
  • Commerce Manager costs extra unlike Shopify or WooCommerce.
  • Sellers have less control over branding and checkout customization.
  • Limited payment options – only cards are supported by default.

Tips for selling with Facebook checkout

Here are some tips for businesses to drive sales using Facebook checkout:

  • Showcase products natively with Facebook Shops and Instagram Shopping.
  • Use enticing videos and images of products to catch attention.
  • Promote products through Facebook and Instagram ads.
  • Offer discounts or incentives for first-time checkout users.
  • Ensure smooth post-purchase experience for repeat purchases.
  • Provide order status and tracking details via messaging.
  • Retarget customers who abandoned carts and remind them to complete purchase.

The future of social commerce

Facebook checkout is a key step in Facebook’s long-term commerce strategy. It brings social media closer to becoming a native shopping experience. Here are some ways Facebook checkout could evolve in future:

  • Expanded payment options – PayPal, mobile wallets, buy now pay later etc.
  • Tighter integration with Instagram shopping and messaging.
  • Shopping across Facebook family of apps – WhatsApp, Messenger etc.
  • Augmented reality to visualize products in home.
  • Shopping personalized recommendations based on data and interests.
  • Expanded support for services, food orders, and virtual goods.
  • Tighter integration with brick-and-mortar stores.

Facebook is investing heavily in commerce and building out tools for businesses to sell directly on its platforms. Checkout is the tip of the spear for enabling social commerce and creating personalized shopping experiences.

Conclusion

Facebook checkout removes the need to visit external websites by allowing in-app purchases seamlessly. Customers can securely buy products from Facebook Marketplace, Instagram Shopping, and ads without friction.

For businesses, Facebook checkout provides a unified omnichannel commerce solution to sell across web, mobile and offline stores. The native on-platform experience increases conversion rates. While checkout is still evolving, it holds great promise for the future of social commerce.