A big part of what Facebook envisions for its future (which is totally justified considering its market value of $75 billion) is the idea that the social networking site will one day become an ecommerce hub, generating billions more in revenue from major brands and online retailers. But is this possible? Many web analysts do not think that this is particularly realistic. As far as ecommerce is concerned, and driving huge amounts of revenue, Facebook may not get any bigger than what it currently is.
Surveys have shown that many retailers (big as well as small) who have used Facebook as a sales channel have found that it offers small pockets of opportunity, but can never compete with the opportunities presented by Google. This is probably because many of the Facebook-based stores are ineffective, especially for the larger retailers, and that the click-through rates are also largely anemic.
Although hundreds of millions of people use Facebook on a daily basis, the ability of this site to drive revenue for ecommerce businesses is certainly elusive. Most retailers have reported little direct or indirect benefit from Facebook. However, many retailers are still experimenting with social networks.
If Facebook wishes to buck up in the area of ecommerce, then here are the challenges it will have to face:
The Facebook stores will have to be made more effective.
Facebook will have to compete with Google in the area search. Google matches shoppers’ needs with products and services. Facebook on the other hand is more of a communication tool.
Payment systems on Facebook are complex.
Facebook has faced many issues regarding privacy.
Surveys have shown that many retailers (big as well as small) who have used Facebook as a sales channel have found that it offers small pockets of opportunity, but can never compete with the opportunities presented by Google. This is probably because many of the Facebook-based stores are ineffective, especially for the larger retailers, and that the click-through rates are also largely anemic.
Although hundreds of millions of people use Facebook on a daily basis, the ability of this site to drive revenue for ecommerce businesses is certainly elusive. Most retailers have reported little direct or indirect benefit from Facebook. However, many retailers are still experimenting with social networks.
If Facebook wishes to buck up in the area of ecommerce, then here are the challenges it will have to face:
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