The Future of F-Commerce: The Market Destination or Social Futiliy? Hessie Jones, June 29, 2012
E-Commerce is going to explode !As of 2011:• 179 MM consumers14+ research productsonline• 83% purchased online• 18-29 YO citingInternet as main sourcedoubles• 3 major sources ofgrowth: mobile, socialcommerce and dailydeals http://mncomarketing.files.wordpress.com/2011/07/usa-e-commerce-trend3.pdf
“It is widely contended that F-Commercetransactions 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
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
“... 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 Facebookhttp://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 thatFACEBOOK CREDITS. They arecontrolled by facebook, can only besourced from facebook approvedlocations and are held onto yourfacebook account by facebook.xxx does not have the ability to dowhat you want as facebook doesntallow it.. If you go to the facebook faqsection on credits it specifically statesthat credits are not transferable toanother account...What you want wont happen becausefacebook wont allow it to happen.. ” http://forums.kixeye.com/threads/137415-Send-friend-fb-credits
“BREAKING NEWS: Facebook shifts approach to payments!”Changes encourage companiesbeyond game developers to sell theirwares on the Facebook platform:• Facebook users will be able tosubscribe to services that requiremonthly payments.•Users will also be able to pay forthings on Facebook in their owncurrency, 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 ofanticipation thatFacebook wouldturn into a newdestination, a store,a place wherepeople would shop,”......It was basicallyjust another place toshop for all the stuffalready available onthe retailerwebsites” Sucharita Mulpuru Forrester
“Facebook is simply NOT the place where users want to go to buy things”??!!•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 opento shopping on Facebook. •34% of respondents said they would never purchase anything on Facebook, •but nearly 20% already have
F-Commerce is not fully defined... at least for large retailers•Lack of measurableROI• Doubt targets willpurchase through asocial network• Social is largelyawareness and brandbuilding•Potential forcommerce is therebut not a priority SOURCE: CHRIS SCHAUMAN, NOKIA AND SOCIAL MEDIA, MARCH 2010
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.”Of the 140K storefronts using Ecwid’s app• 15% total SMB revenue came from Facebookstores• In Q1 2012, that figure rose to 17.7 percent• FB generated revenue increased by 40% in2011 Of the 100K sellers on Payvment • 37% of users selling exclusively through FB •60% confirm customers do not leave FB to make a purchase http://thenextweb.com/socialmedia/2012/03/19/while-major-retailers-shutter-f-commerce-stores-report-shows-15-additional-revenue-for-smbs/
Re Timeline: Facebook’s goal was tomake Pages more about storytellingthan 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.
The Future of F-Commerce? By All Accounts, the Future is Rosy:)• E-Commerce is an inevitabilty and social is alreadyan instigator. Text• By all speculation, Facebook is primed to lead thecharge.• Facebook is now serious as a payment platform thatbecomes truly “global” in nature.• Big brands are still figuring it out. Many are hesitantto step up to the market that is Facebook.• SMBs seem to be fuelling early success.• Timeline may not necessarily benefit the onlinemerchant in the short term but it mitigates user churn• Open Graph has significant impact on visibility andshareability•Data collection is a valid hindrance that must beaddressed.
“The customer journey must bedefined...This just isn’t about Facebook.... but about all emerging channels where Text 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. Dont 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@example.com://www.facebook.com/hessie.jones twitter: @hessiejones http://gplus.to/hessiej