Taking cues from many tech giants, Facebook is now trying to get small businesses to sell directly from its platform. The feature, called Shops, will be rolling out to both Facebook and Instagram and allows pretty much anyone to set up their own web store using the two platforms and sell from them.
“The headroom for growth is ample here,” said Sanchit Vir Gogia, analyst, Greyhound Research. “But I think it’s unfair and wrong to say they can compete with Amazon. There may be an initial swing, but a critical part of e-commerce is in ensuring delivery in the last mile, which is an area that takes years to develop,” he added. Facebook will also have to figure out warehousing and other aspects too.
Gogia also pointed out that Facebook has failed in attracting businesses to itself earlier, through Marketplace. “They’ve always had the bare minimum to create this was available much earlier. But if they haven’t been able to establish any credibility, that’s a big question mark,” he said.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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