Facebook Shops allow businesses to easily set up an online store on Facebook and Instagram. With Facebook Shops, businesses can showcase their products, tell their brand story, and sell items seamlessly across Facebook apps. An important consideration when setting up a Facebook Shop is which checkout methods to enable for customers.
Checkout Methods Overview
There are three main checkout methods available for Facebook Shops:
- Checkout on Facebook: Customers complete purchase on Facebook without leaving the app
- Checkout on Instagram: Customers complete purchase on Instagram without leaving the app
- Checkout on your website: Customers are redirected to your online store website to complete purchase
Each method has its own pros and cons in terms of customer experience, integration, and costs. Businesses can choose to enable one or more checkout methods based on their ecommerce strategy and business needs.
Checkout on Facebook
Enabling checkout on Facebook allows customers to complete transactions seamlessly within the Facebook app. Customers can browse products, add items to cart, go through checkout, and complete payment without having to leave Facebook.
Here are some key things to know about checkout on Facebook:
- Seamless customer experience – Customers do not have to switch between apps or sites to make purchases.
- Supports multiple payment methods – Facebook checkout integrates with Stripe to support credit/debit cards, Apple Pay, etc.
- Sales and ads reporting – Purchase activity is tracked within Facebook ads reporting.
- Requirements – Businesses need a Facebook business page, Facebook commerce merchant account, Facebook shop and product catalog.
Checkout on Facebook provides the most integrated experience for customers. However, businesses need to invest time in setting up the required ecommerce infrastructure on Facebook.
Checkout on Instagram
Enabling checkout on Instagram provides a similar seamless purchasing experience for customers within the Instagram app. Key capabilities include:
- Checkout directly within Instagram feed, stories, reels or ads.
- Uses existing payment details when customer is logged into Instagram.
- Tags purchases with @mentions of brands.
- Turns saved posts into real products.
Checkout on Instagram is great for spurring impulse and social purchases. The requirements are similar to Facebook checkout in terms of needing a business page, payment processing, and product catalog.
Checkout on Website
This checkout method redirects customers to the business’s online store website to complete the transaction. The website can be on any ecommerce platform like Shopify, WooCommerce, Magento, etc.
Benefits of checkout on website include:
- More seamless for established ecommerce stores
- Flexible – works with any online store platform
- Can leverage existing inventory, orders and shipping management
The downside is that customers have to switch between Facebook/Instagram and the external website which can drop-off some users. There is also less built-in integration for tracking sales from Facebook ads.
Considerations for Choosing Checkout Method
When assessing which checkout method to use, here are some key considerations for businesses:
- Existing online store – If business already sells through own website, redirecting to site checkout may be easiest option.
- Ecommerce experience – Businesses without existing ecommerce will need to invest more in onboarding for Facebook/Instagram checkout.
- Target audience – Checkout on Facebook/Instagram caters well to mobile-first shoppers.
- Product mix – Physical products will need shipping/logistics while digital products are easier.
- Resource availability – Dedicated resources needed to manage orders/shipping/returns for Facebook checkout.
Utilizing a combination of checkout methods is also an option. Businesses can start with website checkout and gradually test and add Facebook/Instagram checkout. The checkout methods can also be tailored for different products, promotions or audiences.
Supported Payment Methods
Facebook and Instagram checkout support a range of payment methods. The specific options may vary based on business location and setup.
Facebook Checkout Payment Methods
- Credit and debit cards (Visa, Mastercard, American Express, Discover)
- Facebook Pay – stored payment credentials
- Apple Pay
- PayPal
- Localized payment options in some countries
Instagram Checkout Payment Methods
- Saved payment details when logged into Instagram
- Credit and debit cards
- Facebook Pay – stored payment credentials
- Apple Pay
- PayPal (in select markets)
The variety of payment options ensure customers have flexible ways to pay that are convenient for them. Facebook and Instagram can prompt customers to save a payment method for even faster future checkouts.
Setting up Facebook & Instagram Checkout
To enable checkout on Facebook and Instagram, businesses need to link their Facebook page and Instagram account, and meet the following requirements:
- Facebook business page – Create or connect existing page.
- Facebook commerce merchant account – Manages payment processing.
- Facebook product catalog – Add products for checkout.
- Instagram business account – Switch to or create business account.
- Payment provider – Connect Stripe account or set up payments.
- Facebook shop – Turn catalog into online shop.
Step-by-step guides are provided in Facebook and Instagram to help businesses connect their pages, accounts and tools. Facebook also offers Commerce Manager for consolidated management of orders, shipping, refunds, etc. across checkout methods.
Processing Fees
There are a few types of fees to consider when selling through Facebook and Instagram checkout:
- Payment processing fees – Typically 2.9% + $0.30 per transaction for card payments via Stripe.
- Chargeback fees – Around $15 per disputed charge transaction.
- Platform selling fee – 5% of each transaction on Facebook/Instagram (not website checkout).
The platform selling fees help support the cost of providing integrated Facebook/Instagram checkout. There are no subscriptions or monthly fees. Businesses only pay processing and selling fees on completed sales.
Shipping with Facebook Checkout
For tangible products, shipping capabilities are required if using Facebook/Instagram checkout. Sellers can choose to handle shipping themselves or integrate with supported carriers:
- USPS (US)
- DHL (Worldwide)
- Sendle (AU)
- Starship (US)
- Floship (Worldwide)
Shipping rates can be configured based on customer location. Pickup and local delivery options are also available. Facebook automates taxes for U.S. businesses based on product and shipping address.
Returns and Refunds
To manage returns and refunds from Facebook/Instagram checkout sales:
- Seller policies – Add return/refund policies for shop.
- Commerce Manager – Tools to accept or reject return requests.
- Original payment – Refunds go back to original payment method.
- Return shipping – Provide prepaid return labels or customer pays.
Having clear return and refund policies provides buyers peace of mind. Streamlining the returns process reduces friction for customers.
Checkout Best Practices
Some best practices for setting up and managing checkout include:
- Test checkout flow thoroughly before launch.
- Optimize mobile experience for easy checkout.
- Highlight security and ease of payments.
- Set clear delivery timelines and shipping policies.
- Enable seamless returns and refunds.
- Provide exceptional post-purchase support.
- Continue marketing to previous customers.
Optimizing the end-to-end experience – from checkout to delivery, support and re-engagement – drives customer satisfaction and repeat purchases.
Advertising Products in Facebook Shop
There are several options to advertise and drive traffic to products in a Facebook Shop:
- Product tags in posts – Tag products that followers can purchase.
- Shop tab – Highlights products on Facebook page.
- Shop Instagram posts – Enable shopping bags icon and tags.
- Catalog sales ads – Promote catalog to cold audiences.
- Retargeting ads – Remarket to product viewers.
- Messenger – Share product links for purchase in Messenger.
A strong social and ads strategy helps get your products and brand in front of high-intent audiences ready to purchase.
Connecting eCommerce Platforms
Facebook Shops can also integrate with popular ecommerce platforms like Shopify, WooCommerce, BigCommerce, etc. Connecting platforms allows syncing product catalogs and orders across the sites.
Benefits of connecting ecommerce platforms include:
- Seamless product data sync
- Centralized order management
- Consistent inventory across channels
- Shared customer information
Connecting existing ecommerce tools can help streamline processes and eliminate redundancies. This enhances efficiency for businesses managing products and orders across channels.
Facebook Shop Metrics and Insights
Facebook provides Commerce Manager insights to track key Facebook Shop metrics across checkout methods:
- Orders
- Sales
- Average order value
- Items purchased
- Order conversion rate
- Top converting products
Seller analytics are also available showing metrics like impressions, post engagement, and clicks. Metrics can be filtered by date ranges, products, payment methods and other dimensions.
Insights help businesses assess Facebook Shop performance and fine tune strategies to increase sales and conversion rates. Data can inform decisions on marketing spend, product assortment, features to improve, and more.
Conclusion
Facebook Shops empower businesses to easily set up an online storefront and sell products directly on Facebook and Instagram. Choosing the optimal checkout methods involves balancing factors like customer experience, implementation complexity, costs, and existing ecommerce capabilities. While checkout on Facebook and Instagram provides the most integrated experience, redirecting to an existing online store may be the easiest starting point for established merchants. Utilizing a mix of checkout options can help cater to diverse customer preferences for completing transactions. With the right combination of checkout methods, product mix, compelling storytelling and targeted marketing, businesses can drive sales and brand engagement through their Facebook Shop.