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With a growing amount of people spending the majority of their time online in social networks and most notably, on Facebook, the popularity of social commerce continues to grow.  And with almost half of the overall U.S. population expected to be on Facebook by 2013, the development of Facebook Ecommerce (or f-commerce) makes a lot of sense.

What is F-commerce?

Facebook commerce is a type of e-commerce where Facebook is the platform for the sale. This can happen through the Facebook page or through Facebook’s Open Graph. Social Commerce Today has a great list of f-commerce FAQ here.  They also came out with another post that had some really interesting stats on f-commerce, which I think are important for you to know if you sell anything online. Here are a few of the highlights:

  • 50,000: Number of retailers who have opened an f-store with Payvment
  • 2-4%: f-store conversion rates
  • 7-10%: Increased Average Order Value for Facebook transactions (vs. web-store) for Kembrel
  • 1.5x: Facebook users spend 1.5x more online that other Internet users
  • 1/3: Proportion of time spent online on Facebook by Facebook users

So, people are spending a lot of time on Facebook and those people tend to spend more money. Why not give them an opportunity to spend that money with your store through Facebook?

While some f-commerce systems direct the user outside of Facebook to check out (such as to the e-commerce store), the popular Payvment option is actually an “F-mall” (all these F- words seem inappropriate, but in my defense, I didn’t choose the names.) This simply means that if your f-commerce runs on Payvment, a user can add products to their cart, and the products will stay there wherever you are on Facebook. Users can also add products from other stores running on Payvment and check out whenever they like.

There are also other ways to sell via your Facebook page, but the Payvment option is the best to cater to what Facebook users like to do — which is stay on Facebook.

We did a few informal polls of users on our Facebook Page & Twitter account and the majority of people said they would buy something on Facebook.

The evidence seems to be continually mounting to try out f-commerce. Have you thought about it or are you currently selling on Facebook? Do you think buying on Facebook will become more common?

 


 

Comments »

6 comments on F-Commerce: What Is It & Will It Work For You?

Jeff Sable says:

Lisa, thanks for sharing this. I am with Moontoast, a social commerce software company. We are seeing Facebook commerce across our client base. Here are a few items to keep in mind:

- Facebook commerce works (drives meaningful revenue, profitably) when implemented correctly.
- End users are NOT using Facebook to browse through a product catalog. They are spending time in Facebook to read updates from their friends and family members within their Newsfeed.
- End users are NOT clicking around to shop. You have an opportunity to feature interesting promotions that are ‘line of sight’ (visible – i.e. they appear within your Wall or their Newsfeed). 
- When someone wants to purchase, the process needs to be quick and needs to occur on the spot (i.e within the Wall / Newsfeed). 
- A promotion does NOT need to be a discount. 

May 4, 2011 @ 12:14 pm


lisakeller says:

Thanks for the info, Jeff. Do you have any stats to share?

May 4, 2011 @ 1:09 pm


Josh Kocurekq says:

Facebook commerce will undoubtedly take off as companies continue to get more and more traffic to their Facebook pages. Those who haven’t already shifted their focus or replicated what’s available on their website won’t be able to hold off for much longer.

The influence factor on product purchasing is through the roof on Facebook. I can imagine seeing messages in my feed from friends who are purchasing products on a Facebook page; the same way I would see ‘likes’ from stories or blog posts. Pair this with something like Amazon’s One-Click shopping and the process of consideration to purchase is mere seconds. All this without ever having to leave the site. A bit scary for impulse buyers like myself.

May 5, 2011 @ 11:11 am


lisakeller says:

@Josh — Yep! Just when I started to curb my Groupon/Living Social buying habits, now I have to keep my Facebook buying in check :) I just heard yesterday that Express is now the first company to offer their entire catalog for purchase within Facebook. I’m sure many more stores will follow suit.

May 5, 2011 @ 11:38 am


Adam Hallas says:

We have already looked into and foresee it as an item/area that would need more strategic attention. Great Article!

May 26, 2011 @ 9:07 am


Michael Daehn says:

Definitely something to add to the marketing mix. Marketing is not either/or, it’s both/and. This is another area that marketing professionals will need to pay attention to, and use when appropriate.

July 8, 2011 @ 12:33 pm


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