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Facebook Shop Is A Threat To Amazon

The biggest risk to Amazon, from Facebook Shop, is that the commission it takes on sales from vendors is the business. Commission on sales is not Facebook’s business and Facebook plans to waive that commission for businesses that sell on its platform. If you sell books on Amazon, you will pay Amazon say 10% as commission on gross.

But on Facebook, that is your money to be kept. Facebook does not need the commissions as its core business is advertising but Amazon needs that money as that is the business of the merchant aggregator. Facebook Corp is a “continent” with an excess of 3 billion people, well ahead of Amazon’s forest. On logistics, provided you are not promising same day delivery, most economies with functioning postal services will serve these Facebook vendors.

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