Checkout on Facebook allows businesses to sell products directly on Facebook and Instagram. It provides an integrated payment processing system that allows customers to purchase items without leaving the app. Checkout aims to provide a seamless shopping experience by eliminating the need to go to an external website to complete transactions.
How does checkout on Facebook work?
Facebook Checkout integrates directly with a businesses’ product catalogs and utilizes the payment details users already have on file with Facebook to provide a one-click buying experience. To set up checkout on Facebook, businesses need to:
- Create a Facebook Shop and sync product catalogs
- Enable checkout on eligible products
- Process orders and fulfill purchases
Here is a more detailed overview of how the checkout process works for customers:
- A customer sees a product tagged for checkout on Facebook or Instagram and clicks the checkout button.
- If it’s their first time using checkout on Facebook, they are prompted to enter their shipping address and payment information which is saved to their Facebook account.
- For subsequent purchases, the customer’s shipping, billing, and payment details are automatically populated at checkout.
- The customer reviews their order details and clicks “Place Order”.
- Facebook processes the payment on behalf of the business using the customer’s default payment method.
- The customer receives a confirmation email with order details and tracking information.
- The business receives the order and processes it for fulfillment.
From a customer standpoint, the checkout process is designed to be quick and convenient with just a few clicks. Businesses benefit from access to Facebook’s massive user base, on-site advertising capabilities, and integrated payment processing.
What are the benefits of checkout on Facebook?
There are several key benefits checkout on Facebook offers both businesses and customers:
Benefits for Businesses
- Access to Facebook’s over 2 billion monthly active users
- Sell directly to an engaged audience without directing them elsewhere
- Listing products is free, only pay Facebook when you make a sale
- Utilize Facebook advertising to drive sales
- Built-in payment processing reduces third-party fees
- Carts are synced across Facebook and Instagram
- Sales and order data appears directly in Facebook analytics
Benefits for Customers
- Seamless one-click checkout process
- Payment information is saved for future purchases
- Shipping, billing, payment details pre-populated each checkout
- Purchases are secure – handled by Facebook Pay
- In-app support for any order issues
- Orders synced across mobile and desktop
By handling everything from discovery to purchase, checkout on Facebook provides a streamlined experience and allows customers to purchase products without ever leaving the app.
What types of businesses can use checkout on Facebook?
As of October 2023, checkout on Facebook is available for the following types of businesses:
- US retail businesses selling products in most categories
- Businesses using Shopify, BigCommerce, or ChannelAdvisor
- Businesses pre-approved by Facebook based on ads spending andcatalog size
Facebook is rolling checkout out gradually, so not all retailers have access yet. Eligibility requirements may change over time, but currently checkout is focused on larger brands with significant product catalogues. Categories restricted from checkout include:
- Alcohol
- Health supplements
- Weapons
- Adult products
Only physical products can be sold through checkout for now – no digital products or services. However, Facebook may expand checkout to more business types and categories in the future.
What are Facebook Shops?
Facebook Shops are digital storefronts that businesses can create to showcase their products on Facebook and Instagram. Shops are free for businesses to set up and serve as the foundation for powering checkout on Facebook.
To create a Facebook Shop, businesses connect their product catalogs using supported platforms like Shopify, BigCommerce, WooCommerce, or by directly uploading products. Key features of Facebook Shops include:
- Customizable online storefront on Facebook and Instagram
- Ability to showcase full product catalogs
- Shoppable product tags that customers can click to browse offerings
- Shopping ads in Facebook and Instagram feeds
- Shop tab on business Pages and profiles
Facebook Shops allow businesses to turn their product catalogs into immersive shopping experiences. Customers can browse products, save items, and now checkout directly without leaving the app. Shops are required in order to enable checkout functionality.
How to set up a Facebook Shop
To create a Facebook Shop:
- Navigate to the Commerce Manager section under Settings
- Click “Set up shop” and choose a product source to connect
- Use the Commerce Manager to customize your shop layout
- Turn on tagging for shoppable products
- Publish your shop to make it available on Facebook and Instagram
Facebook provides step-by-step guidance on how to configure product catalogs from supported ecommerce platforms. Shopify, BigCommerce, WooCommerce stores, or uploaded product catalogs can all be linked to populate the Facebook Shop.
What products are eligible for checkout on Facebook?
For a product to be eligible for checkout on Facebook, it must meet the following requirements:
- Be listed in a businesses’ Facebook Shop catalog
- Be an approved product category for checkout
- Have inventory connected (optional)
- Be tagged for checkout in Commerce Manager
During the checkout setup process, businesses can review their inventory and individually enable checkout eligible products. Items that meet the category and catalog requirements can easily be toggled on to activate checkout functionality.
In addition, checkout must follow Facebook’s commerce policies. Restricted items like alcohol, weapons, services, digital goods, and adult products are not allowed. Banned or unsafe products also cannot have checkout enabled.
Enabling checkout on products
Businesses can mass enable checkout on eligible products or toggle it individually per item. To do this:
- In Commerce Manager, navigate to the checkout settings
- Use the filters and bulk actions to enable checkout
- Or click into each product to toggle checkout on/off
Facebook recommends enabling checkout on popular products first. Sellers can always increase the number of items available for checkout in their shops at any time.
How much does it cost to use checkout on Facebook?
Registering for Facebook Shops and listing products is free for businesses. Facebook only collects a fee when a checkout transaction is processed. The checkout selling fee depends on the payment method:
- PayPal: Pay Facebook 3.99% + $0.30 per transaction
- Facebook Pay: Pay Facebook 5% per transaction with no fixed fees
These rates are competitive with leading third-party processors like Stripe or PayPal. There are no monthly fees or setup costs – businesses only pay when a sale is made. Selling fees help support services like payment processing, customer support, and return protection.
Does checkout on Facebook support shipping and returns?
Yes, Facebook Checkout provides native support for shipping, tracking, and returns management. When setting up checkout, businesses can configure the following options:
Shipping
- Set up pre-defined shipping profiles and rates
- Offer real-time calculated shipping based on customer address
- Provide free shipping thresholds (e.g. orders over $50)
Tracking
- Send tracking numbers and carrier details automatically to customers
- Tracking updates show directly in Facebook notifications
- Visibility into shipment statuses from Commerce Manager
Returns
- Accept returns up to 30 days from purchase
- Allow exchanges for different size or color
- Offer refunds to original payment method
- Customizable return policy displayed at checkout
Sellers can choose to customize shipping profiles by location, set return windows, and specify other policies. This provides a flexible system to handle fulfillment and post-purchase support natively via checkout on Facebook.
How do refunds and disputes work?
If a customer requests a return or refund, the original transaction can be reversed through Facebook Payments. Funds get credited back to the customer using their original payment method. Some key points on dispute management:
- Sellers have tools to accept/decline return requests
- Required documentation depends on return policy set by the seller
- Customer service reps can help mediate disputes
- Refunds must be processed within 2 business days
- Refunds appear in the seller’s Payments tab transaction history
Facebook Checkout provides an integrated system for managing returns and refunds. Dedicated support teams also help review fraud disputes or any contested charges. The goal is to make the process quick, secure, and fair for both buyers and sellers conducting transactions on Facebook.
What customer support does Facebook provide?
Facebook Checkout comes with dedicated customer support for shoppers and businesses. This includes:
- Buyer support – Customers can get assistance with orders via live chat, email ticketing, or messaging directly from the Facebook app.
- Seller support – 24/7 teams assist with disputes, refunds, account issues, and product questions via chat, message, and email.
- Returns portal – Allows businesses to easily view and manage return requests and refunds.
- Notifications – Checkout triggers real-time updates on transaction activity, disputes, and other alerts.
Facebook teams actively monitor stores, transactions, and shopping behavior to detect fraud risks. Support staff are available to address any checkout-related issues for both buyers and sellers.
Does Facebook offer integration support?
Yes, Facebook provides resources to assist with the checkout integration process:
- Onboarding education – Videos, guides, live training to get started
- Technical documentation – Developer references for the Checkout API
- Partner support – 1:1 assistance connecting to channels like Shopify or WooCommerce
- Account managers – Dedicated reps for large sellers
- Community forums – Discuss integration and best practices
The Commerce Manager section contains detailed walkthroughs and setup checklists. Facebook also offers live seller education sessions and webinars to explain the product and features. Technical questions can be discussed with engineering support staff.
Is my data secure with Facebook Checkout?
Yes, Facebook Checkout uses industry best practices for securing transactions and storing data:
- Encrypted data transmission via HTTPS
- No credit card numbers are stored on Facebook servers
- PCI compliant tokenization to protect payment information
- Multi-factor authentication required for account access
- AI monitoring to detect fraudulent activity
- Secured servers with limited employee data access
Facebook employs top fraud prevention specialists and automated systems to analyze transactions in real time. They use signals like login patterns, purchase history, device information, and shipping addresses to determine risk levels.
Sellers only need to share minimal customer details to fulfill orders. Sensitive payment data always stays between the customer and payment network – never directly accessible to sellers or Facebook employees.
How does Facebook advertise checkout eligible products?
Facebook provides the following ad formats to promote checkout-enabled products:
- Collection ads – Showcase catalogs, promote sales or new products
- Product tags – Tag products in posts and ads to showcase them
- Dynamic ads – Auto-generate customized ads for shop items
- Instagram shop – Show shoppable Instagram posts or stickers
Advertisers can specifically create campaigns and catalog-based ads to drive traffic to checkout-ready items. The checkout “Buy Now” button displays on any eligible products.
Optimizing for checkout conversions
Best practices to increase checkout performance with Facebook ads:
- Lead with high-intent offers or sales
- Advertise newly launched or trending products
- Retarget customers who already added items to cart
- Make sure thumbnail images are clear and titles descriptive
- Test call-to-action copy and layouts
- Measure cost per checkout to identify winning products
Checkout conversion events can be tracked to see returns on ad spend. The tight integration with Facebook ads allows retailers to directly attribute sales to their campaigns.
Is checkout on Facebook right for my business?
Checkout on Facebook delivers significant benefits for eligible sellers. Yet weighing the pros and cons is important when deciding if it is a fit for your commerce strategy.
Pros of Facebook Checkout
- Huge built-in consumer audience on Facebook/Instagram
- Fully native mobile checkout experience
- E commerce tools integrated with advertising
- Increased visibility and discoverability for products
- Lower fees compared to third-party processors
Cons of Facebook Checkout
- Limited to US businesses currently
- Primarily focused on larger brands
- Less control over look/feel of checkout process
- Product restrictions in certain categories
- Can be complex integration depending on tech stack
Checkout on Facebook delivers huge exposure potential given its massive user base. Yet the platform, fees, and control may not align for some smaller direct-to-consumer brands.
Key takeaways
- Checkout on Facebook allows customers to purchase products without leaving Facebook or Instagram.
- After setting up a Facebook Shop, businesses can tag eligible items for one-click checkout.
- Buyers complete orders using their saved payment information and shipping address.
- Sellers pay a 5% fee on transactions with no monthly or setup costs.
- Checkout aims to provide a fast, native buying experience across mobile and desktop.
- Facebook provides tools and support for setting up checkout while securing shopper data.
- Checkout gives retailers huge exposure, but may not suit smaller brands dependent on other sales channels.
Checkout brings ecommerce directly into the Facebook ecosystem. For retailers eligible to activate it, checkout can become a powerful sales engine combined with advertising and shop capabilities. The seamless in-app buying experience keeps customers engaged while removing friction from the purchasing process.