Ondango - F-Commerce - FacebookCommerce - 20. Twittwoch Berlin

Exploring F-Commerce April, 2011

About me José Matías del Pino Founder at Ondango Industrial Engineer, MBA Graduate of The Founder Institute More than 2 years of experience in the German internet industry as founder (mobile content) and as Business Development Manager (monetization of online games). Previous industry experience in logistics (Procter & Gamble), marketing (Robert Bosch) and consulting (The Boston Consulting Group). Ondango -‐ Conﬁden-al 2

Agenda 1.  Introducing Ondango 2.  The f-Commerce space 3.  Lessons learned and best practices Ondango -‐ Conﬁden-al 3

Facebook is the new Internet 600 million users 290 million people play games onFacebook at least once a month Social Games 5 billion pieces of content are sharedon Facebook each week Social Sharing Facebook is the second largest trafﬁcsource for online videos Social Media More than 2 billion chat messages aresent each day Social Communication But what about shopping? Ondango -‐ Conﬁden-al 4

Introducing Ondango Shop owners use Disconnected experience between Facebook Page Limited capability to reach Facebook as marketing more people channel and shop Transforming their Users never leave Viral features to spread Facebook presence into a Facebook to complete the word sales channel the purchase Ondango is a shopping solution that helps people and small shops sell products directly on their Facebook Pages, by leveraging social interactions. Ondango -‐ Conﬁden-al 5

Ondango live demo Easy navigation Different product variations Like button Image gallery with zoom Rich HTML support for product description Flexible payment and shipping methods Comments with “post on news feed” Call to action for new shop owners … and much more: Localization Multiple currencies Optimized checkout ﬂow Facebook-like user interface Ondango -‐ Conﬁden-al 6

The market of e-Commerce in Facebook N° of shop owners with Facebook Pages 1,500,000 x Average N° of products sold per shop/year 60 x Average price of a product 55€ Global market size of f-Commerce: 4.5 Billion € Ondango -‐ Conﬁden-al 8

4 types of f-Commerce 1.  Fan Page Full Shop 2.  Fan Page Storefront 3.  Canvas Apps 4.  In-Feed Shops Ondango -‐ Conﬁden-al 9

Fan Page Full Shop A full-ﬂedged shop that exists completely within aFacebook Page, i.e. the user never leaves Facebook in order to complete the purchase. Examples: Ondango, Payvment Ondango -‐ Conﬁden-al 10

Example of Fan Page Full Shop Payvment: Ondango -‐ Conﬁden-al 11

Fan Page Storefront A shop that exists within a Facebook Page, but when ausers clicks on a product, it is redirected to an onlineshop outside of Facebook to complete the purchase. Examples: Dawanda, ShopTab Ondango -‐ Conﬁden-al 13

Example of Fan Page Storefront Dawanda: Ondango -‐ Conﬁden-al 14

Canvas Apps A shop that exists as an iFrame within Facebook, butnot on a Facebook Page. The user can generallycomplete the purchase within Facebook. Examples: Milyoni, Shop Igniter Ondango -‐ Conﬁden-al 16

Example of a Canvas App Milyoni: Ondango -‐ Conﬁden-al 17

In-Feed Shops A shop that exists on an embeddable widget that canbe shared through Facebook, and thus it can show upon a user’s news feed, where she can complete thepurchase. Example: Sellaround Ondango -‐ Conﬁden-al 19

Example of an in-Feed Shop Sellaround: Ondango -‐ Conﬁden-al 20

f-Commerce: Summary Type Example Pros Cons Best shopping Limited space toFan Page Full Shop experience within display products Facebook Easy to replicate Longer purchaseFan Page Storefront existing online shop funnel, users have to leave Facebook More space to Facebook is usedCanvas App display products just as a frame for a normal shop Products show up Only allows to sell directly on the one product,In-Feed Shop news feed unusual shopping experience Ondango -‐ Conﬁden-al 21

Lessons learned and best practices 1.  Users don’t install apps 2.  Tips on NFO (Newsfeed Optimization) 3.  Be different 4.  What’s in f-Commerce for Facebook? Ondango -‐ Conﬁden-al 23

Users don’t install apps FBML made necessary that the users install a shop’sapp in order to purchase something. Example: Payvment Ondango -‐ Conﬁden-al 24

Users don’t install apps Since February 2011, Page Apps can be developed using iFrame Advantages: •  No app installation necessary •  Product deep linking •  Better SEO Ondango -‐ Conﬁden-al 25

Users don’t install apps Ondango switched from FBML to iFrame in April 2011. Up to 80% of users would drop-out from the purchase funnel when requested to install our app! Ondango -‐ Conﬁden-al 26

Tips on NFO NFO is the f-Commerce Equivalent of SEO SEO NFO What do we want to Show up higher on search Shop up more frequentlyachieve? results on our fans’ newsfeeds What do we want to PageRank EdgeRank maximize? How are these formulas Sum of (PR of outbound Weight x Afﬁnity x Timecalculated? links / # of inbound links) Decay Ondango -‐ Conﬁden-al 28

Tips on NFO How does Facebook calculate EdgeRank? Weight x Affinity x Time Decay Weight defines a hierarchy between different types of content shared on Facebook. Facebook issaid to adapt this hierarchy to their strategic needs. Right now: Facebook Places > Video Update > Picture Update > Link Update > Status Update Affinity defines how relevant is a certain content for the content viewer. Different variablesdetermine the affinity, but the two most important are: How much have you interacted withcontent from that source before, and how much do your friends interact with content from thatsource (Interaction = likes, comments, shares, etc.). Time Decay lowers the EdgeRank of a piece of content depending on how old it is. Ondango -‐ Confiden-al 29

Tips on NFO How can I improve my EdgeRank? •  Post high-weight content more often (e.g. videos and pictures) •  Ask users for feedback or make questions on your status updates (that generates likes and comments) •  Ask for a large quantity of likes to reveal new content •  Create contest that involve commenting on a picture •  Don’t be spammy (max. 3 posts/day) •  Post content at the right time (status updates sent out in the morning get more user activity, and Wednesday is the best day of the week) Ondango -‐ Conﬁden-al 30

Be different Users expect different things from a Facebook shop •  Facebook-Only products (e.g. pre-ofﬁcial launch) •  One-time-only availability •  Special discounts •  Limited stock •  Other perks, such as free shipping In our tests, Facebook-only products and free shippinghave proven to increase engagement and conversion. Ondango -‐ Conﬁden-al 32

What’s in f-Commerce for Facebook? Facebook will use the same approach as with the Social Gaming Industry •  When shop owners discover the value of Facebook as a sales channel, they will spend more on Facebook Ads (which are cheaper for Facebook Pages than for external sites) •  Facebook Credits won’t be used for real goods (30% commission). Instead, they’ll be used as promotional tools (buy this and get 5 Credits for free!) Ondango -‐ Conﬁden-al 34

Thank you! jm@ondango.com

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Ondango - F-Commerce - FacebookCommerce - 20. Twittwoch Berlin

by Twittwoch e.V. on Apr 27, 2011

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Ondango - F-Commerce - FacebookCommerce - 20. Twittwoch Berlin — Presentation Transcript