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Facebook to Launch Buy Button to Keep Up with Pinterest, Google


Jun. 25 2015, Updated 8:06 a.m. ET

Facebook to offer news feed buy button to Shopify Merchants

Facebook (FB) is jumping on the bandwagon of “buy-button” service. A report by John Constantine was recently published in Techcrunch called “Facebook Challenges Pinterest With News Feed Buy Button for Shopify Merchants.” According to the article, the company will collaborate with the e-commerce player Shopify (SHOP) to offer its merchants a “call-to-action” button within its news feed.

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Avoid the hassle of leaving the site to make a purchase

The buy button will be available on both page posts and promoted-post ads for Shopify merchants. Users can now easily purchase items they come across on their news feed without leaving the Facebook site. They also have the option to save their payment information on Facebook for future purchases. This makes purchasing easier, especially on mobile.

According to a report from AddShoppers, and as the chart below shows, email is still the most effective medium for getting users to purchase products online. After email, it’s ads on Google, Facebook, and Twitter.

Today, companies including Facebook, Google (GOOG), Twitter (TWTR), and Pinterest are focusing heavily on e-commerce capabilities and foraying into the mobile shopping market. Retailers, too, could benefit from these initiatives, as they are struggling to compete with the likes of Amazon (AMZN) that dominate the mobile shopping space.

Twitter has launched an in-tweet buy button for users to complete e-commerce transactions instantly on its own platform. For its part, Google recently launched a similar service on YouTube.

For diversified exposure to Facebook, you can invest in the Technology Select Sector SPDR Fund (XLK). XLK invests 4% of its holdings in Facebook.


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