F-Commerce and the Many Dilemma’s of Facebook


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Facebook is at a certain stage in its lifecycle that begs half the world to scoff at it. Literally half of the people polled in a survey by the Associated Press and CNBC said that they thought Facebook is a passing fad. I find this interesting because of their extremely high IPO. Their business model is yet to be understood as their main sources of revenue are display ads and gaming, plus, they have to face the reality that their time may run out.

It seems that pressure from investors has forced Facebook to focus more seriously on F-commerce. Exactly how it sounds, F-commerce is e-commerce that is done directly on or through a brand’s Facebook page. In theory, it seems to have a lot of promise for the company. Some say its transactions will come close to Amazon’s sales in the next 5 years.

If that’s the case, Facebook has a lot of catching up to do since big retailers like JCPenny, Nordstrom and the Gap recently shut down their Facebook storefronts to focus more on their own site’s e-commerce. This seems to be a pretty common trend for bigger brands, probably because their customers are accustomed to shopping directly through their websites. Additionally, many customers are not ready to trust F-commerce due to all the other scams they see on the network.

Small to midsize businesses may not put as big of a dent in Facebook’s wallet, though they are seeing positive results from F-commerce. According to data from e-commerce software company, Ecwid, over 35,000 global SMBs are experiencing revenue increases by using both on-site e-commerce and F-commerce. It’s an interesting trend that seems to reverse my last point about big brand F-commerce. SMB customers may be less reliant on the company’s website and equally as willing to purchase through Facebook.

It will be intriguing to see what becomes of F-commerce in the next five years and what type of effects it has on investors. Chances are, if it doesn’t work, Facebook will move on to something else.

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