Facebook-owned instant messaging platform, WhatsApp has released Carts, an e-commerce feature that allows users to browse a merchant’s catalogue, select multiple items, and send the order as one message to the merchant.
Cart is similar to that on e-commerce platforms like Jumia and Konga in which users add the items they want to buy in one cart and send it to the merchant when they are ready to buy. While the feature is being rolled out globally from Tuesday, merchants in Indonesia got early access.
The cart feature aligns with Facebook’s push to transform users’ experience while interacting with businesses on WhatsApp as well as play a vital role in the global e-commerce space. As a result, WhatsApp has released a sleuth of features including QR codes, a dedicated shopping button, and the ability to share links in chats.
Two months ago, WhatsApp said more than 175 million people everyday message a WhatsApp Business account. People prefer to message a business to get help and they’re more likely to make a purchase when they can do so.
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The company went ahead to announce it was making three investments; shopping; Facebook Hosting Services, and Business Sales.
Shopping enables users to check out available products and make purchases right from a chat. It also makes it easier for businesses to integrate these features into their existing commerce and customer solutions.
Facebook Hosting Services is an option for businesses to manage their WhatsApp messages via hosting services that Facebook plans to offer. WhatsApp says providing this option makes it easier for small and medium-sized businesses to get started, sell products, keep their inventory up to date, and quickly respond to messages they receive – wherever their employees are.
Business Sales allows Facebook to charge business customers for some of the services they are able to access.
For Facebook, pushing WhatsApp into the e-commerce space is a means to an end – profitability. Since it was acquired by Facebook, WhatsApp has pulled little weight in terms of revenue although it has massive followership.
A Facebook spokesperson had told BusinessDay in August that while WhatsApp was a free-to-use app for consumers and small businesses, it also has a WhatsApp Business API which allows larger businesses like airlines, e-commerce companies, or banks to build their solutions. It generates revenue from the API.
“When people reach out to receive support from a business or opt-in to receive useful information like a boarding pass or receipt, Facebook makes money by charging the businesses to send these types of messages,” the spokesperson said.
Nevertheless, its foray into e-commerce makes it a viable challenger for more established brands like Alibaba, Amazon, Walmart, and in Africa, Jumia. Jumia has the largest share of the e-commerce market in Africa.
The WhatsApp e-commerce releases are reportedly helping businesses in India already to kick-start their journey. Payment experts say to become a full end-to-end, WhatsApp needs to address payment support.
“Only payments + logistics missing for a full end-to-end e-commerce experience in-app,” Wiza Jalakasi, Business Development lead at Hover Developer Services tweeted on Tuesday. “Open up the API and let local solution providers integrate, and charge them per API call. Much easier than attempting top=down integration approach, though way less margin.”
WhatsApp Pay could be the answer to the payment support. The payments service is built atop UPI, a payments infrastructure built by a coalition of large banks in India. The service has been allowed to roll out in a graded manner in India and has to work with multiple banking partners. WhatsApp is currently working with five big banks in India: ICICI Bank; HDFC Bank; Axis Bank; the State Bank of India, and Jio Payments Bank.
