© 2013 eMarketer Inc.

A P R I L 2 0 1 3

Facebook Commerce: Evolving, Not Extinct

For more information on this subject, see the related report athttp://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001091Krista Garcia

© 2013 eMarketer Inc.

Only 6% of US retailers had Facebook storefronts in 2012, down 63% from 2011

But Facebook remains a popular platform

© 2013 eMarketer Inc.

Many US marketers find Facebook at least somewhat useful to drive purchase intent

© 2013 eMarketer Inc.

Quantifying Facebook’s utility as a sales driver has been more difficult …

… But several US ecommerce firms have still published their own statistics comparing Facebook with other channels.

RichRelevance found that buyers coming from Facebook converted at more than twice the rate of Pinterest and Twitter and had the highest revenues per session. Science analyzed four of its largest sites and determined Facebook had a higher conversion rate than Pinterest (1.17% vs. 0.36%).Shopify discovered that Facebook drove considerably more traffic than Pinterest or Twitter (26.4% vs. 3.6% vs. 3.6%). 8thBridge found that Facebook beat out Pinterest and Twitter as a source of upstream traffic (2.9% vs. 0.13% vs. 0.07%).Social Annex determined the value of sharing a product on Facebook to be higher than on Twitter ($10.88 vs. $6.09).

© 2013 eMarketer Inc.

Facebook was the social network most likely to influence purchases among US internet users, trailing sales-focused sites

© 2013 eMarketer Inc.

Facebook influences US millennials to buy products more than other age groups

© 2013 eMarketer Inc.

Harnessing US Facebook users’ tendency to share is a core social commerce tactic

© 2013 eMarketer Inc.

Facebook Login can be a rich source of customer data

Though only about 12% of retailers in North America use this tactic

© 2013 eMarketer Inc.

Facebook regularly develops new products with promise for retailers

Facebook Exchange (FBX) is an ad retargeting product for selling ads through real-time bidding. Users are served cookies on their browsers so that after visiting a retailer's site, they see “marketplace ads” on the right side of Facebook.

Custom Audiences allows advertisers to target ads or sponsored stories using data collected online through browser cookies or offline through things like loyalty programs.

Offers are promos that appear in the newsfeed and are redeemable in-store, online or both. Facebook began testing phase two in early 2013 using two buttons, "shop now" and "remind me," with actions posting to the claimant’s newsfeed.

Gifts uses friends' data to provide gift suggestions and send real products without having to know the recipient’s address. Facebook’s physical gift cards are meant to be universal and reusable. Value can be added for a number of US merchants.

© 2013 eMarketer Inc.

Key Takeaways

Facebook commerce isn't new, but it remains experimental. The practice is still in its early stages, and not everyone has well-defined strategies.

Facebook is complementary and not a standalone channel.

Social commerce lacks instant measurability, so results aren't immediate.

There are no set rules for how merchants can leverage social commerce, and what's possible is constantly evolving.

Shoppers need transparency about how retailers use their personal data, along with reasons for using social logins and sharing with friends.