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Sci-Tech
Wednesday Sep 15 2021
By
Reuters
,
Web Desk

WhatsApp rolls out new business directory to promote e-commerce

By
Reuters
,
Web Desk
A representational image. — AFP/File
A representational image. — AFP/File

  • Instant messaging platform announces the business directory to quickly find local businesses within WhatsApp.
  • This feature may not be available to some right now, but it will be rolled out for more people later, writes WABetainfo.
  • This can be...the primary way that people start a commerce process in WhatsApp, says Matt Idema.


Instant messaging platform WhatsApp has announced the business directory to quickly find local businesses within WhatsApp, WABetainfo reported Wednesday.

“This feature may not be available to you right now, but it will be rolled out for more people later,” WABetainfo wrote.

In order to bolster e-commerce on its services, a new test has been rolled out which allows users to find shops and services through a directory in the app.

“This could be...the primary way that people start a commerce process in WhatsApp,” Matt Idema, Facebook’s vice president of business messaging, said in an interview with Reuters this week.

WhatsApp, unlike Facebook and Instagram, does not run ads in its app. Idema said previously businesses were promoting their WhatsApp numbers on packaging or websites or using Facebook ads to bring users into chats on WhatsApp.

The messaging service has increasingly courted business users, with a specialised app for small firms and an API, or type of software interface, for larger businesses to connect their systems, which generates revenue.

As online retail has continued to boom during the COVID-19 pandemic, Facebook has pushed in-app shopping features across its apps. In June, Zuckerberg announced Facebook’s Shops feature would expand to WhatsApp in several countries. In recent years, WhatsApp also has also launched shopping tools like product catalogues and shopping carts.

WhatsApp said the new test would include thousands of businesses in categories like food, retail and local services across certain São Paulo neighbourhoods. Idema said India and Indonesia were good next candidates to expand the feature.

The company, which has faced user backlash amid confusion over privacy updates and was fined by the Irish data protection regulator over privacy breaches, said it will not know or store the location of people’s search or results through the new directory feature.

Idema did not rule out the possibility that WhatsApp could introduce in-app ads in the future.

“There’s definitely a route on ads, which is Facebook’s core business model, that over the long term I think in some form or another will be part of the business model for WhatsApp,” he said. WhatsApp says about one million advertisers currently use Facebook and Instagram’s ‘click to WhatsApp’ ads to send users to the messaging app.

Idema said WhatsApp, which Facebook bought for $19 billion in a landmark 2014 deal but which has been slow to monetise its features, was also excited about non-ad models like building software to help businesses to manage their services across Facebook’s apps.