Sunday, February 5, 2012

Why Facebook Is Still A Tough Sell For Retailers.

Here is an excellent article by Sucharita Mulpuru of Forrester Research on the issues around Fcommerce, wherein she writes that "The vast majority of that valuation will come from the company’s digital advertising business.  As for commerce, don’t expect much."  

About a year ago, she asked the question Will Facebook Ever Drive eCommerce? and the answer hasn’t significantly changed in the time since.  Not only has Facebook seemingly been much more focused on the display ad side of the business all but dismissing retail (they rejected a keynote slot at the annual Shop.org summit last year and rumor has it that they turned down the slot following Bill Clinton at this year’s National Retail Federation big show, the trade show in all of retail), but the numbers that retailers have shared with us are no more encouraging:
  • Stores or fan pages on Facebook have yet to generate any significant revenue for companies as few shoppers visit brand pages or Facebook stores after becoming a fan
  • Few shoppers buy after seeing information posted on Facebook; a holiday study we did with GSI Commerce showed that less than 1% of revenue from retailers was attributable to social networks.

No comments: