Back in 2014, When Facebook bought WhatsApp worth $19 billion, the aim was to go after its traditional monetization policy, which comes to an end by inserting ads into positive factors and generate massive earnings from WhatsApp users.
The strategy doesn’t work out with the popular messaging app. This year only, Facebook drops all its plan for inserting ads into WhatsApp status i.e a story type feature of the app, with other major paid promotions plans.
Problem For Facebook
Facebook New Approach
After the big failure in inserting ads into WhatsApp. Facebook has come up with a new strategy with in-app shopping features similar to Instagram. This will help the brands to control their interactions with potential customers and hence results in maximizing their business. These features are not free of cost, to get advanced features there is a fee for it. Facebook hasn’t cleared yet about the amount of fees but it will be nominal from the merchants.
WhatsApp has become a simple and convenient resource at this time. More than 175 million people every day message a WhatsApp Business account. Our research shows people prefer to message a business to get help and they’re more likely to make a purchase when they can do so.
Facebook is trying to build a strong presence of WhatsApp commerce in the Indian market, as it has a big potential. There is a slow expansion of WhatsApp Pay in some regions. Facebook’s new acquisition of eCommerce platforms such as Meesho gives Facebook more options to use it.
We will expand ways for people to check out available products and make purchases right from a chat. We also want to make it easier for businesses to integrate these features into their existing commerce and customer solutions. This will help many small businesses who have been most impacted in this time.
The evolution of eCommerce features in WhatsApp is logical and eventually could bring some income to Facebook by having some percentage from the sales generated. But for the initial phase, it should have a massive demand for this new focus.
This is how easy we think messaging a business should be – seeing a store’s catalog in a chat, adding an item to your cart, placing your order and getting fast responses to questions. We are looking forward to bringing these experiences to more people on WhatsApp! pic.twitter.com/nkJyC3dOzg
— WhatsApp (@WhatsApp) October 22, 2020
We’re announcing a new way for businesses to store and manage their WhatsApp chats with customers using Facebook’s secure hosting infrastructure which will roll out early next year. This will make it easier to onboard to WhatsApp Business API, allow them to respond to WhatsApp messages faster, keep their inventory up to date and sell products through chats.
If a business chooses to use a third-party vendor to operate the WhatsApp Business API on their behalf, we do not consider that to be end-to-end encrypted since the business you are messaging has chosen to give a third-party vendor access to those messages. This will also be the case if that third-party vendor is Facebook.
WhatsApp messages through Facebook hosting service will give more options to manage the WhatsApp exchanges from various far away workers. This change might impact the end-to-end encryption process of the popular messaging app.
We will charge business customers for some of the services we offer, which will help WhatsApp continue building a business of our own while we provide and expand free end-to-end encrypted text, video and voice calling for more than two billion people.
Changing in hosting service will give more flexibility in management and clarity in communication but it will also increase the cost as well.
Facebook is really trying hard to make WhatsApp as a single App for all work. The idea comes after seeing the Wechat growth in China that allows them to make payments, taxi bookings, and messages, etc.
India and Indonesia are the two main countries where Facebook is trying to make it massive. The changes will come in these two countries soon.