Facebook stock climbed 2.5 percent Tuesday afternoon after the social network announced expanded shopping capabilities on its main app as well as on Instagram.
Shoppers will now be able to make purchases from any business directly within the Instagram app. Previously, only certain businesses were eligible for Instagram Checkout. BigCommerce, one of the companies that Facebook has partnered with to enable in-app checkout, was up 27 percent on the news.
Instagram said it will waive its selling fee through the rest of the year, ” to reduce the cost of doing business online, especially given the current economic crisis.”
Facebook shares were up 2.9 percent Tuesday afternoon at $279.19.
The company is scaling up its e-commerce capabilities as more and more businesses have turned to its platform to reach customers during the coronavirus pandemic.
Facebook also announced on Tuesday that its upgrading Instagram Shops to allow stores to communicate with shoppers via the app’s built-in messaging capabilities, as well as to let stores do QVC-style live streams where they can show off goods in real-time.
It’s also introducing a dedicated Facebook Shops tab on its app and website where users will be able to buy products from businesses.
Facebook Shops will be similar to Instagram Shops, which was introduced in May and allows business to create an online storefront within the app where customers can browse their selection and choose products to buy.