The Facebook Gift Shop – Is tapping into the E-Commerce realm really a good idea Zuckerburg?
The hugely popular social media site, Facebook is growing yet again. Facebook is now inching towards being a full-blown E-commerce platform. Users can now purchase from certain vendors and send gifts up to a few hundred dollars. These gifts vary from Starbucks coffee, to eyeglasses by Warby Parker and more.
The addition of this purchasing feature is to open a new door to much more revenue. After Facebook’s bad start with public offering, the company hopes to make a bounce-back with the platform. By taking a cut of each purchase made on its site Facebook will gradually make money off its users. This will aid in Facebook’s attempt to make their money in places other than relying of advertisements. Just alone, during the second quarter, roughly 80% of its revenue of $1.18 billion came from advertisements. 15% alone, came from Zynga gaming.
If this gifting feature catches on, Facebook will begin yet another fad in its users social media routine. Instead of logging on and visiting their friends “farms” they will be logging on and buying their friends a cup of coffee. With each little purchase the gifting will push Facebook into a whole new frontier with huge possibilities.
Facebook hopes to change its users used to the concept of socializing and gifting as a part of their daily social routine.
As an avid Facebook User, I see the cons out weighing the pros for this platform. Users go to Amazon to buy, Pandora to listen, Facebook to share and socialize, not to make purchases. A few years ago, Facebook tried a type of ‘Virtual Gift’ program where users can send virtual icons and badges to their friends but shut it down in 2010 due to the dull attention. Hopefully this idea, like virtual gifting or F-Commerce doesn’t go belly up.
The service will be initially available to a random group of U.S. users logging into Facebook through the website and an Android app. An iPhone app is still undergoing development.