How does an Instagram checkout work

Facebook and Instagram Shops: This is how online retailers sell via social media
Facebook and Instagram Shops: How Online Retailers Sell

What is "Facebook Shops"?

The fact that online retailers can set up a shop on Facebook is nothing new. However, Facebook now wants to establish itself as a shopping platform with Facebook shops and compete with Amazon and eBay. To this end, the group has accelerated the “Facebook Shops” project that had been planned for a long time. Since May 19, 2020, companies that already have a shop on Facebook have switched to Facebook shops. If the function is available for you, you will be informed by Facebook via email and a notification on your Facebook page. The previous Facebook shop can then be converted automatically. More information about Facebook shops can be found here.

What can the new “Facebook Shops” do?

The new Facebook shops are based on the existing Facebook and Instagram page shops. In the Commerce Manager of your shop you can create collections with 6 to 30 products. You can sort the collections according to different topics and add cover pictures and videos. Gradually, additional functions are to be added, for example live shopping, whereby products can be sold directly via a video live stream. In addition, it should be possible for potential buyers to mix virtual content and real images with the help of augmented reality and thus try out virtual clothes, glasses or cosmetics, for example. The products should also be able to be sold easily via Facebook's chat services, i.e. Messenger, WhatsApp or Instagram.

In order for you to be able to use the new shopping function - when Facebook contacts you - you must already have a Facebook page shop. You will now find out how to set it up:

Set up a Facebook shop: that's how it works

To set up a Facebook shop, of course, you need a Facebook account. The shop can then be set up in just a few steps:

  1. On your Facebook page, click on the "Shop" tab in the navigation on the left.

Note

If you don't see this tab yet, the first thing you need to do is select the Shopping Template for your Facebook Page. To do this, click on "Edit page information" and then on "Templates and tabs" in the navigation on the left. There you can then select "Shopping" under Templates.

  1. You must then agree to the dealer guidelines and terms of use.
  2. Then you have to choose the type of purchase: Either you choose the option "Sales talk", then the sales process takes place via messages with the buyer directly; or you choose to complete the purchase on another website, then the buyers will be redirected to your website or online shop and complete the purchase there.
  3. Then select the currency for your shop - done.

List and sell products in the Facebook shop

When you have opened your Facebook shop, you can discontinue your products. To do this, simply click on the "Shop" tab again and there on the "Add product" button.

Outside of the USA there is (currently) no possibility to process the sale directly in the Facebook shop. The buyers are redirected from Facebook to your online shop and complete the sale there. However, there are several tools that can make the checkout process through Facebook easier. For example, you can set up your own small web shop in the form of a special landing page for Facebook customers (for example at Ionos). Shopify also offers seamless integration of the Facebook shop.

Sell ​​on Instagram

You can also sell your products via Instagram Shopping. To do this, you must first meet the following requirements:

  • You are only allowed to sell physical products (no services)
  • You need a corporate Instagram account
  • You need to link your Instagram profile to Facebook

If you meet these requirements, the next step is to link your Instagram business profile to a catalog on Facebook. You can either use the Catalog Manager, with which you can add product information step by step, or - if you use the e-commerce platforms Shopify or Big Commerce - use them to set up the catalog.

If your Instagram account is connected to the catalog, you can set up the shopping function in the Instagram app in the second step. To do this, click in the profile settings on "Business" and then on "Instagram Shopping." Then you have to wait, because your account will now be checked. This can take up to a week and a half. When the verification is complete, you will be notified and you can finish setting up Instagram Shopping.

Then you're ready to go and create your first shopping post or story. To do this, you can add a post or story as usual and then click “Mark Products” to add a product from your catalog. You can mark up to five products per photo or video post, and up to 20 in posts with several photos. You can insert a product sticker into each story. Users can access your shop via the “View shop” button, click through the products and shop via a link on your website or in your shop.

Tips for Selling on Social Media

Whether via the old or new Facebook shop, or on Instagram. You should consider the following if you want to sell products on social media:

  • React quickly to customer inquiries: On social media, customers expect an answer even faster than to inquiries via other channels, so you should reply as soon as possible, but in any case on the same day
  • Post your products in your timeline so that your customers can see them in the news feed
  • Rely on good product photos: Photos are particularly important on social media, especially Instagram. Your photos should therefore be as professional as possible and show the products from different angles and in different (usage) situations
  • Describe your product in detail, making sure that the name, price and link are correct
  • Use hashtags that aptly describe your product.

Legal problems selling on Facebook and Instagram

At the moment, neither Facebook nor Instagram is a “real” online shop. Because only the products can be displayed there like in a shop, the processing of the sale then takes place on your website or your own online shop. Nevertheless, you must observe all legal requirements that also apply to your own web shop, for example the imprint obligation (for the video imprint obligation), the price regulation or product information obligations. You must also refer to the right of withdrawal in your Facebook or Instagram shop.

Unfortunately, there is a lot of legal uncertainty, especially since there is often no space for the necessary legal texts and online retailers have to be creative in order to accommodate all the information correctly. It remains to be seen whether at least Facebook will remedy the situation with the new shop function.

In the "old" version of the Facebook shops, the button solution is also controversial. Because the button, which then leads to the respective online shop, reads “Execute purchase confirmation on website.” If the user only has to enter his data and payment information by clicking on the button, it becomes legally insecure. Because according to the rules of the so-called button solution, the text on the button must be clear, for example "order now for a fee." Therefore, even if this is technically possible, you should never put a link in the checkout process of the order behind this button leads to the fact that the customer already buys the item.

Tip:

Due to the many legal uncertainties for online retailers about legal security in social media, it can be worthwhile to buy legal texts from experts. There are offers, for example, at WBS, eRecht24, easyRechtssicher, the Händlerbund or Kanzlei Plutte.

Web shop insurance protects your eCommerce business: no matter where you sell

Regardless of where you sell your products as an online retailer, you always bear a high risk of legal violations and thus of warnings. And new regulations and laws are constantly being added. It is hardly possible not to lose track of everything.

That is why the webshop insurance is available from exali.de. With this you can secure your online shop comprehensively, regardless of whether it is a violation of the law on your website, when selling on Amazon and eBay or on social media. If you receive a warning, send us the warning and we will take care of everything else: The insurer will check the warning, ward off unjustified claims and pay justified claims for damages.

Ask? You can always reach our customer advisors personally, without a call center or waiting queue.