Facebook Announces New Mail Order Feature Available Across Multiple Apps

Facebook announced on the 19th that it will introduce Facebook Shoppes, a mail order service that allows companies to sell their products through the company's multiple platforms.

Facebook, which last year launched limited mail-order services on photo-sharing app Instagram and interactive app What's Up, will enhance its e-commerce capabilities with the introduction of Shoppes. By making the platform profitable for businesses, Facebook executives expect to be able to grow ad revenue even as user growth slows.

The Shops will allow companies to set up a single online store that can be accessed through "Facebook" or Instagram. There will also be enhanced messaging integration, allowing customers to interact with businesses through Watts Up, 'Messenger' and 'Instagram Direct'.

Announcing the new feature in a live video, CEO Mark Zuckerberg also indicated that he plans to work more closely with eight e-commerce platforms, including Canada's Shopify (SHOP.N) (SHOP.TO). The video also featured Tobias Lutke, CEO of Shopify.

Shortly after Facebook's announcement, Shoppify's stock was briefly sold off, but returned to value when Mr. Lutke appeared in the video. Facebook and Shopify's U.S.-listed shares closed up 1.7% and 2%, respectively, in trading on Jan. 19.

Facebook is offering Shoppes for free in anticipation of increased consumer usage and increased ad revenue. Mr. Zuckerberg said, "The business model here is advertising," and that "the Shops will benefit companies, and companies will increase their ad spending.

Facebook is also introducing a feature that will display product tags at the bottom of live video, allowing users to shop while watching the video.