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First, f-commerce is already a viable retail platformTop 3: The top 3 brands on Facebook (by fans) all sell directly on Facebook - Coca-Cola (24m), Starbucks (20m) andDisney (19m)2-4%: f-store conversion rates – on a par with web-stores (avg. 3.4%, according to Forrester/Shop.org)7. Seventh, industry adoption of f-commerce is accelerating76%: percentage of retailers who plan to use Facebook for ‘social commerce’ initiatives8. Eighth, f-commerce is future-proof retail (mobile and app platform, Facebook as the OS of the future)50%: Proportion of mobile internet traffic accounted for by Facebook and other social networking tools44%: proportion of retailers who plan to use Facebook application in place of microsites for product launches and promotions
“People try to take their dot-com and turn it into Facebook and vice versa. The two are mutually exclusive, and they are separate channels.usante elaborated: A social page can, and should, be moderated on a regular basis, as it’s the closest to a brick-and-mortar experience that one can get in the digital realm. Customers can ask a question, they can ask a friend a question, they can share or even start a poll — and two users can even be looking at the same thing. “You want to give them every opportunity to tell other users how cool they think the brand is because, most likely, they’re the tastemaker in their group. These are the people you’re catering to, so it’s important that you don’t make it hard for them. You give tastemakers every opportunity to share your product and the discussion that they’ve started, whether this is on Facebook or Twitter. It’s all about the conversation. The holy grail of social media is to turn people from lurkers to advocates. That’s always been the idea behind a fan page.”
Brands can bring the Facebook experience to their websites, tapping users’ connections and interests to support the purchasing process. The simplest examples involve using social plugins — short code snippets that ping Facebook’s network for information about the user visiting the brand’s site. Social plugins let you see what your friends have liked, commented on or shared on sites across the web.The Like button lets a user share your content with friends on Facebook. When the user clicks the Like button on your site, a story appears in the user's friends' News Feed with a link back to your website.The Like Button is the most common plugin and is usually regarded as a content sharing device, but when it is used in conjunction with a product page it can provide peer support by displaying the names and profile images of people who have Liked the product — most appealing for brands is the fact that it also highlights any of the user’s Facebook friends who have Liked the product.One step further than social plug-ins, a more sophisticated approach uses Facebook’s Open Graph API to retrieve the Likes and interests of the user, as well as those of his or her friends. There is a permission screen involved and every friend’s privacy settings are individually respected.Anyone can take the Open Graph for a test drive (as long as they aren’t blocked from Facebook via firewall). Just type “http://graph.facebook.com/[any Facebook username]” into a browser, and the Open Graph will show you very basic information for that user.Data provided:"name": "Facebook Platform", "type": "page", "website": "http://developers.facebook.com", "username": "platform", "founded": "May 2007", "company_overview": "Facebook Platform enables anyone to build...", "mission": "To make the web more open and social.", "products": "Facebook Application Programming Interface (API)...", "likes": 449921, "id": 19292868552, "category": "Technology"With this data, you would be able to customize your marketing based on the fact that some of your customers know each other and that they share interests. In other words, this is where good social media marketers really start earning their paychecks.For the past few months Amazon.com has been offering a “Tap into Your Friends” option (still labeled Beta). After the permission screen, the user is taken to an Amazon page showing the upcoming birthdays of Facebook Friends and their Amazon Wish List if they have one. Amazon uses a user’s friends’ profile data, which often includes favorite books and music, to make gift suggestions.
The company’s been well funded, raising a total of $8 million from BlueRun Ventures, Sierra Ventures, and 500 Startups.Unlike other solutions that have popped up from major retail chains, Payvment's tools are truly social. Musante tells Fast Company that Payvment understood from the beginning that Facebook was not the place to mimic e-commerce sites. “People go to Facebook with intention,” to connect with friends and family Musante says, “But we see [retailers] who say rebuild my store.”Musante says Payvment saw the Facebook platform as an opportunity to reinvent shopping. Payvment powers individual shops on FB but also pulls them together on an aggregate site --a "mall" if you will-- that both allows for discovery and recommendations, as well as provide an intro to small boutiques, like Amazon's network of sellers on steriods.Vivienne Westwood; Gibson Guitars; Molly Sims’ jewelry line, Grayce, and Lakers Nation
Unlike other solutions that have popped up from major retail chains, Payvment's tools are truly social. Musante tells Fast Company that Payvment understood from the beginning that Facebook was not the place to mimic e-commerce sites. “People go to Facebook with intention,” to connect with friends and family Musante says, “But we see [retailers] who say rebuild my store.”Musante says Payvment saw the Facebook platform as an opportunity to reinvent shopping. Payvment powers individual shops on FB but also pulls them together on an aggregate site --a "mall" if you will-- that both allows for discovery and recommendations, as well as provide an intro to small boutiques, like Amazon's network of sellers on steriods.For $29.99 a month, Payvment Premium offers subscribing sellers a host of features including the oh-so-social dashboard that aggregates advanced analytics beyond simple sales and traffic data. Payvment’s tools show all social interactions including likes, comments and Tweets on a product-by-product basis, enabling sellers to evaluate the impact of promotions and understand which products are trending or driving viral reach.Sellers can also schedule posts to their wall and Twitter feeds and run promotions on individual products using product-specific coupon codes.For large sellers with more sophisticated needs, or an agency handling a large number of clients, Payvment will also offer Payvment Platinum, a custom version that comes with a corresponding price tag. Taylor says the promote button in particular, allows brands to seem much more social. “”There is a 900 percent increase in conversation about that product. If you automate that a bit and set up a week’s worth of promotion you can generate the world’s perfect promotion,” he says.
THREATS: Privacy Issues: In 2007, Facebook tried Project Beacon, which collected ecommerce activity on third party sites and announced a user’s purchases on his or her friends’ news feed. Facebook quickly withdrew from that privacy nightmare but its dismal reputation for freely dispersing user data still haunts F-commerce. Many Facebook users have become so accustomed to Facebook’s aggressive data sharing policies that they automatically assume the worst. A recent study from JWT found the percentage of people worried about Facebook privacy and security to be in the 75% range.WEAKNESSES: Slow page loads, smaller page size due to ads & navigation: Experienced ecommerce managers also see problems with Facebook.com itself. “The user experience is less-than-optimal with slow page loads and smaller page size due to Facebook’s advertising and navigation. I don’t see why customers would bother shopping through Facebook when a faster and better experience is only a browser tab away,” notes Linda Bustos, director of ecommerce research at Elastic Path Software. Facebook advertising is certainly an issue. No matter how you structure your F-commerce store, the user will still be served targeted Facebook ads during the buying process.Strength: behavior is influenced by these environmental factors or stimuli, and not psychological factors alone.OPPORTUNITIES: Many web marketers question the social nature of shopping itself, and there is considerable opinion that people visit Facebook to catch up with their Friends and not to be sold products. The good news on that front, from the JWT study, is that 48% of millennials (aged 20-33) would like to see the places where they shop give them the ability to buy directly on Facebook.Don’t count on Facebook coins and Facebook Ads: The best reason for businesses to take a deep breath before investing in a F-commerce is Facebook itself, which currently benefits from F-commerce primarily through the sale of ads promoting it. They’d obviously like a better cut and nobody is quite sure how they would do it. Facebook Credits could somehow be expanded to become the currency for F-commerce. Credits for gaming and virtual goods earn Facebook a 30% commission — F-commerce Credits would probably be in the 5% range.
Intro to Facebook Commerce (F-Commerce or Social Shopping)
* * *Social Shopping By Savitrii (Kiki) Rizki @savrizki November 9, 2011 CRAFTFor SocMed100: Social Media in Business PCE FAIR
CRAFTFCOM 101: Introduction to F-Commerce FAIR F-Commerce: (n.) The art of selling through Facebook. Four Types Evidence 1 Evidence 2 Conclusion F Stores Web Stores Already aBiggest brands sell directly. Conversion Conversion viable retail(by fans) 3% 3.4% platform 76% of retailers 24% have not Industry plan to use F- adoption is Commerce accelerating 29m 50% of mobile 44% plan for Future-proof 36m internet traffic FB product retail launches 26m
Comparisons to E-Commerce2-way F-Commerce Free fromconversation Facebook• Start a poll E-Commerce • Uncluttered with by Facebook friends Ads• Creates advocates Complements • Separate channels • Not replacements CRAFT FAIR
Overview of F-Commerce TypesFacilitated Fb Initiated Selling iFrames v. Fb AppsOn-siteAmazon’s “Tap into JCPenny Lady Gagayour Friends”Social plug-ins (8) Storefront on 520 v. 760 pixels(i.e. the Like button) Facebook Browse on Simple: iFrames - create Facebook & maintain own content Redirect to site CRAFT More difficult: Apps , also expensive FAIR
Complete Selling The fourth branch of F-Commerce & certainly the most interesting CRAFT FAIR
Complete Selling CRAFT FAIR What is it? Never takes user away from Facebook Example: Mark.Girl Select products, delivery options, pay makeup & share without interruption Tools: 8thBridge, PayvmentExample: Delta Airlines ticket sales
60,000 active sellers | 80% of F-shopping | Palo-Alto based “Truly social – Not a copy of E-commerce” Payvment Mission Payvment is the #1 social commerce platform on Facebook. Our goal is simple: to connect people, products, and conversations in new ways to reinvent online shopping. CRAFT FAIR
Complete Selling with Payvment CRAFT FAIR Store front: Set up shop, upload products with no fee. Fb & Payvment doesn’t take a cut of sales revenue Mall: Pulls together individual shops for one- time checkout • Like Amazon! Discovery, recommendations, intro to small boutiquesUpgrades$29.99/month: Analytics dashboard, schedule posts, coupon codesPayvment Platinum: Custom, automated promotions
Recommendations S W O T Strength Weaknesse Opportunitie ThreatsAnalysi s • Privacy & s s Facebook’s s • Slow page • 48% of • Social millenials flawed loads reputation reinforcement (aged 20-33) • Smaller page • A browser tab • Facebook is want to the size due to away expected to opportunity ads & reach 1 billion to buy navigation users directly from FbStrategi Perfect & Faceboo Target Good es Promote k R&D Millenials Design • Drive FB users • Make pages • F-commerce • Good design & to F-stores • Complete selling load faster developers should target CRAFT incentives to stay on • Delete ads or • Use Payvment hide options millenials’ Facebook FAIR favorite • Educate users on companies privacy changes
References Web Pages 1. Mashable.com - Facebook Commerce Guide: http://on.mash.to/nJtDP1 2. Fastcompany.com – Facebook Commerce is the New Black: http://bit.ly/qVKeDl 3. Payvment.com - http://www.payvment.com/ 4. Facebook.com Developer’s Page - http://developers.facebook.com 5. SocialCommerceToday.com - F-Commerce Statistics Roundup: http://bit.ly/sCeunj 6. PracticalECommerce.com – Social Media: Selling on Facebook: http://bit.ly/aTs6M3 7. VentureBeat.com – Facebook Approaches a Billion Customers: http://bit.ly/oUBoqq 8. WWD.com – Talking F-Commerce with Payvment: http://bit.ly/pKUtuY CRAFT FAIR
Thanks for Listening! Enjoy the next presentations and have a restful evening! CRAFT FAIR
Shopping is Social Questions Anyone?Again! CRAFT FAIR