The Future of F-Commerce: The Market Destination or Social Futiliy?
Hessie Jones, June 29, 2012
E-Commerce is going to explode !
http://mncomarketing.files.wordpress.com/2011/07/usa-e-commerce-trend3.pdf
As of 2011:
• 179 MM consumers 14+ research products online
• 83% purchased online
• 18-29 YO citing Internet as main source doubles
• 3 major sources of growth: mobile, social commerce and daily deals
“It is widely contended that F-Commerce transactions will exceed Amazon’s annual
sales over the next 5 years.”
http://searchenginewatch.com/article/2172155/Is-F-commerce-a-Flop-Why-Retailers-Arent-Sold-on-Facebook
Vevo is pulling its music video content from Youtube and shifting to Facebook’s Open Graph!
• 200% increase in daily registrations since the change to Facebook-only registration
• 600 percent increase in published actions on Facebook from February to March
• 130 percent increase in referrals from Facebook to VEVO from February to March
• 60 percent of Facebook referral traffic comes from Open Graph stories
• UK Stats: 177K monthly video streams in January, 23% more monthly viewers
Viddy is attracting celebs like Snoop Dog since its integration with FB Open Graph!
• Integrated with FB in February 2012
• 1.5 million joined Viddy
• growth from 60K to 920K MAU
• 2X increase in average daily sign-ups with Open Graph
• 9MM Viddy interactions on FB
• 90% of new users join Viddy through FB
• 45% of all uploaded videos are shared through FB
“... If we fail to maintain good relations with Zynga, we may lose a significant Platform
developer and financial results may be adversely affected”
Facebook 2011 Revenues 3.7B
• 85% from Advertising• 12% from Zynga
http://searchenginewatch.com/article/2143126/Facebook-IPO-Show-Ad-Revenue-Increased-69-in-2011
Turn FB Credits into a payment system for all goods within Facebook
http://www.nytimes.com/2011/03/09/technology/09facebook.html?_r=1
“An economy that walls itself off from the rest of the world is doomed to failure”
Facebook credits are exactly that FACEBOOK CREDITS. They are controlled by facebook, can only be sourced from facebook approved locations and are held onto your facebook account by facebook.
xxx does not have the ability to do what you want as facebook doesnt allow it.. If you go to the facebook faq section on credits it specifically states that credits are not transferable to another account...
What you want wont happen because facebook wont allow it to happen..
http://forums.kixeye.com/threads/137415-Send-friend-fb-credits
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“BREAKING NEWS: Facebook shifts approach to payments!”
Changes encourage companies beyond game developers to sell their wares on the Facebook platform:
• Facebook users will be able to subscribe to services that require monthly payments.
•Users will also be able to pay for things on Facebook in their own currency, rather than credits.
http://forums.kixeye.com/threads/137415-Send-friend-fb-credits
“It (FB Stores) was like trying to sell stuff to people while they’re hanging out with their
friends at the bar”
“There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop,” ......It was basically just another place to shop for all the stuff already available on the retailer websites”
Sucharita MulpuruForrester
•Fans “like” brands primarily for one reason – special discounts and sales promotions.•Likes influence purchase likelihood among friends of fans.•Liking a brand’s page or product is often a post-purchase activity.•Demographic differences play a role, with Millennials being the generation most open to shopping on Facebook.
•34% of respondents said they would never purchase anything on Facebook,•but nearly 20% already have
“Facebook is simply NOT the place where users want to go to buy things”??!!
F-Commerce is not fully defined... at least for large retailers
SOURCE: CHRIS SCHAUMAN, NOKIA AND SOCIAL MEDIA, MARCH 2010
•Lack of measurable ROI
• Doubt targets will purchase through a social network
• Social is largely awareness and brand building
•Potential for commerce is there but not a priority
The Few Successes
“From our (SMB) view, f-commerce is not only alive and well, it is thriving despite the fact
that some big brands have stumbled.”
http://thenextweb.com/socialmedia/2012/03/19/while-major-retailers-shutter-f-commerce-stores-report-shows-15-additional-revenue-for-smbs/
Of the 140K storefronts using Ecwid’s app
• 15% total SMB revenue came from Facebook stores• In Q1 2012, that figure rose to 17.7 percent• FB generated revenue increased by 40% in 2011
Of the 100K sellers on Payvment
• 37% of users selling exclusively through FB•60% confirm customers do not leave FB to make a purchase
Re Timeline: Facebook’s goal was to make Pages more about storytelling than
product selling. And it worked.
FB Covers: No Selling Please!!!
“Citizens of the world, Your personal information is not your own”
•54% of US consumers said they did not feel safe buying products or services on Facebook
• 8 % said they felt extremely safe
This reflects a wider concern: 6 in 10 Facebook users in the US do not trust Facebook to keep their information private.
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The Future of F-Commerce? By All Accounts, the Future is Rosy:)
• E-Commerce is an inevitabilty and social is already an instigator.
• By all speculation, Facebook is primed to lead the charge.
• Facebook is now serious as a payment platform that becomes truly “global” in nature.
• Big brands are still figuring it out. Many are hesitant to step up to the market that is Facebook.
• SMBs seem to be fuelling early success.
• Timeline may not necessarily benefit the online merchant in the short term but it mitigates user churn
• Open Graph has significant impact on visibility and shareability
•Data collection is a valid hindrance that must be addressed.
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“The customer journey must be defined...This just isn’t about Facebook.... but about all
emerging channels where customer attention becomes increasingly distributed”
1. Facebook is still a social space and should not be treated as just another marketing exercise.
• Interaction with customers is vital to maintain your business' social credentials. Don't let your business become just another faceless retailer.
• Remember that Facebook users talk to each other. Treat them with respect.
• Integrate Facebook into your enterprises other activities. Today, retailing is all about delivering a seamless experience for the consumer.
Thank You
[email protected]://www.faceb
ook.com/hessie.jones twitter: @hessiejones http://gplus.to/hessiej
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