Social Ecommerce

Facebook has always tried to understand new ways to generate revenue and increase the interests between business by providing new way to interact with the final user. A lot of effort has been used to pursuing the will to create a Social Commerce (or Facebook Commerce), to enable companies to generate revenue trough social networks and make them justify the relative marketing investments.

Facebook Ecommerce

As can be seen form the screenshot above, Facebook launched a new feature (only for US Friends) that allows users to send a real gift to their friends trough a message on their birthdays’ reminder section. This feature can appear as a simple feature, that in my opinion can have a great success potential, as for the following reasons:

  • Conversion Rate: the conversion rate can be high, as can be taken in consideration the psychological impulse purchase factor, and the provided possibility to buy an important last-minute gift.
  • Reason Provided: along with the previous point, to generate a purchase the user needs a valid reason to use its resources. By using this delivery method, Facebook provides this element that is often forgotten by marketers.
  • Sponsored Gifts: those gifts (I haven’t tested this first person) is a feature that can be used along with the Facebook’s offers, that an user can redeem on a fanpage. But differently, those aren’t a discount codes but vouchers that the final user can use to redeem on a brick and mortar shop or in an ecommerce website.
  • Always a Gain: due to the nature of the voucher, the sponsoring company has always a gain. If its redeemed, a “new lead” is gained or the loyalty increased, if not the company will have a full economical gain as the product/service isn’t requested.

As expressed in the analysis before, this can be a further step toward what can be called Social Commerce. This is because by definition, this should be an environment where the user would be able to buy goods seamlessly with their social activities, and not by using methodologies aiming to push tab-stores or offers, there is the need to remember the different roles and aims of Social Networks and Ecommerce Websites.

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