Forget about the “like” button, Facebook wants you to push the Buy button.

Facebook is giving a new meaning to phrase “window shopping.” The social media giant has long been known as a place to socialize, share and discover. Soon it may become a virtual mall because Facebook announced last month that it has began testing virtual storefronts on company pages with the introduction of the Buy button.

Facebook has been testing its buy button in ads on the news feed for over a year. With Pinterest and Twitter adding their buy buttons to their networks, Facebook seems to further integrate their buy button into their network. The basic premise of this feature is that it will improve customer experience. The customer can browse, purchase and track items from their favorite brands without having to leave the social networking site. However, specific details and formatting are still unclear because this feature is still in the testing phase. Currently, Facebook is testing this new feature with a small number of businesses, which they have not disclosed the names.

Is Facebook trying to compete with Amazon?

Amazon is one of the biggest online e-commerce sites on the web, and it is no surprise why people love spending their money and time on the e-commerce site. Amazon has everything you could ever want or need. It provides great customer service and standard shipping is very fast because it only takes about 1-4 days to reach you. Most importantly, Amazon personalizes each customer’s experience. The company monitors its user’s browsing and purchasing activities to provide customers will relevant products that appeal to their interests.

According to reports, Facebook relies on digital adverting to accumulate the majority of its revenue, which is expected to reach approximately $60 Billion by the end of 2015. It is also expected that online commerce will reach about $350 billion by the end of 2015. Naturally, it is easy to see the appeal of investing into e-commerce features, which is exactly what Facebook may be looking to do.

Similar to Amazon’s personalization, Facebook has been improving user’s news feed. It has unleashed multiple algorithms so that its users can discover and see information that they find relevant. These new features may be the foundation for recommending retailers that appeal to Facebook users.

What this means for marketers

This buy button will have major effects on online e-commerce and marketers may need to rethink their strategy to adapt to this new feature. This feature gives businesses a way to monetize their Facebook pages without having to pay for sponsored posts.

By utilizing the buy button on their brand’s page, they will be able to potentially obtain more visibility and reach a larger audience. Furthermore, if customers are interacting more with Facebook pages, it can be a great way for a brand to target their ads.

While there are benefits to this buy button, unfortunately there are some drawbacks. Many marketers see this new feature as an attempt by Facebook to create a “walled environment” by keeping everyone on the website or mobile app. If a customer merely pushes the buy button on a business’ Facebook, they may be less likely to visit the brand’s website, which will affect the brand’s website traffic. Many have also pointed out that this new feature is oddly similar to Facebook Instant Articles because the social networking giant takes away the functionality of other sectors by hosting the services directly on Facebook.

Also, when you make a deal with Facebook, you are at the mercy of their terms and conditions. Currently Facebook says that they will not planning for a cut of the online transactions or charge for including a buy button on the page, but what is preventing them from changing their mind? Finally, brands may be at the mercy of Facebook algorithms or having to worry about Facebook favoring certain brands. Thus, they may start buying ads just to make sure that people view their products.

Will your brand utilize this new feature once it is released?

Here at Kraus Marketing, we specialize in search engine optimization, social media and web design. We try to remain up to date on digital news in order to provide you with news on emerging trends and innovations. For more information contact us at (973)-998-5742 or online at www.KrausMarketing.com.