Changes Coming to Meta Commerce Shops in 2024
Changes Coming to Meta Commerce Shops in 2023
Meta has announced significant changes to its Shop support across different regions in a new update released on April 27, 2023. This update reveals changes that may have substantial implications for online businesses in the United States and around the world. These changes will particularly affect businesses that operate online shops on Facebook and Instagram or use these platforms to promote online stores hosted by companies such as Shopify. At Vicinia Digital, we are committed to keeping our partners at the forefront of the digital landscape. We provide services such as setting up and optimizing Meta Commerce Shops, ensuring our partners are always up-to-date with the latest requirements and opportunities in the ever-evolving digital marketplace.
Starting June 5, 2023, all new US shops onboarded through Commerce Manager and Shopify will be required to have Checkout on Facebook and Instagram enabled. This requirement will extend to new shops onboarded through other eligible partners by August 10, 2023.
From April 24, 2024, shops in the US without Checkout with Facebook or Instagram enabled will no longer be accessible. This includes shops that use Checkout with messaging and shops that direct people to an e-commerce site to complete a purchase, rather than allowing people to make a purchase directly through Facebook or Instagram. Businesses without checkout-enabled Meta Shops will no longer be able to use features associated with shops, including organic product tagging in posts and new custom and lookalike audiences derived from people who visited a shop. Exceptions will be granted for omnichannel and subscription businesses.
While these changes are US-centric, they also have implications for businesses in other regions. Businesses in 21 international markets, including Australia, Brazil, Canada, Denmark, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Netherlands, Norway, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the UK, and Ukraine, may continue using shops without Checkout with Facebook or Instagram enabled until further notice. However, the Shops experience will evolve in these markets to focus more on driving product discovery and conversion on a business’ website.
These changes present a significant opportunity for Vicinia Digital to assist businesses in navigating these new requirements. While we do not operate a shop ourselves, we do offer expertise in setting up and optimizing Meta commerce shops for partners looking to adapt to these changes. One exciting feature about utilizing this update is that when enabled and running an ad campaign, Meta will use an AI to detect where a user is more likely to convert (Meta Shop or website) and send them there. For example, if you sell dog leashes on an online store and you also have your Meta Commerce Shop setup, Meta will decide where the user is more likely to make a purchase, the shop or the website, and send each respective user there.
In addition to the changes to Shops, Meta announced that if a Facebook Page has not yet been updated to the new Pages experience by June 5, 2023, it will be updated automatically. This update will not support some old features like the ability to manage and post a catalog or product details page from a Facebook Page. However, businesses will still be able to post website links.
Despite these changes, Meta continues to encourage businesses to utilize a mix of free and paid tools to find customers and drive sales, including personalized ads, Reels, and messaging across Facebook, Instagram, and WhatsApp.
In light of these changes, the services offered by Vicinia Digital are more valuable than ever. We help businesses adapt their strategies and stay up-to-date with current trends. By understanding the implications of these changes and planning accordingly, Vicinia Digital can ensure a smooth transition and continued business success for its clients, both in the US and internationally.
Q&A
How does this work for taxes in different states?
This is not legal advice however most states levy online store taxes in regard to the customer’s physical location, not the business’s physical location. The Meta Commerce Shop states “We’re required to collect and remit sales taxes on your behalf in certain states regardless of your nexus. Learn about marketplace facilitator states and sales tax.” Here is a link to their article regarding more about this.
Meta does all the setup for online shopping on their website, what are the fees for them taking the money?
Right now there is no selling fee through June 30th, 2023 however afterward there will be a 5% selling fee. Shopify has a lower fee ranging from 0.5%-2% depending on your plan however setting up a store here would be slightly more expensive and does require a monthly subscription. I have a lot of experience with this though if you wanted to go that route and put more money upfront to save money on the backend.
Once the store is up Meta takes the sale, then notifies of where to ship the product. How exactly does the Meta store work from start to finish of a sale?
Meta has a Commerce Manager dashboard where you can view your shop, all of your orders, and everything you need to run an online store right there. You can even turn on email notifications for every order you get! For more information, please reach out to Meta directly or schedule a free consultation with one of our neighborhood growth partners to see if setting up a Meta Commerce Shop is right for you.
Disclaimer: Vicinia Digital is an independent digital marketing agency that provides services related to Meta platforms including Facebook and Instagram. We are not part of, endorsed by, or in any way officially connected with Meta Platforms Inc., or any of its subsidiaries or affiliates.
