Social Media

How Facebook is Changing The Face of Social Commerce!

How Facebook is Changing The Face of Social Commerce
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Online behavior of customers has been changing ate a very fast pace and the impact of E-Commerce has been extended from customers reviewing the products from Yelp, Maps, Forums, Blogs etc. to Social Networking sites like Facebook. With more than 850 million active users Facebook is a gold mine for marketers and companies who wish to generate sales through internet as medium.

In the past advertisements using social networking sites and social media sites has been considered to influence the sale of a product but the growth of Facebook has paved way for Facebook Commerce or F-Commerce. Now here I am going more deep into Facebook commerce its impact and how it drives more profit for your organization.

Types of Facebook Commerce

Facebook Commerce has been divided or categorized into various spheres; take a look at the image below for more detailed explanation.

fcommerce-ecosphere

Facebook Stores

Facebook stores have been on a huge rise and brands have been trying out innovative tactics to enable users to purchase a product easier through Facebook tabs. For example take a look at Lady Gaga’s Facebook Commerce page. Many companies have been looking for creative ways in order to let the people purchase a product from Facebook itself without moving away from it. Also take a look at the Fan page of ASOS and Delta Airlines for a better understanding of Facebook Store integration.

Facebook Advertisements and Facebook Sponsored Stories

Facebook advertisements and Facebook sponsored stories can give tremendous push to you social visibility. Facebook advertisement is the traditional paid ad strategy that is adopted by many brands whereas Facebook sponsored stories will offer social ads in a user’s new feed. Sponsored stories are not active yet and it is expected to be rolled out in from January 2012, Facebook traditional ads combined with sponsored stories can be a big marketing opportunity for a brand.

Facebook Mobile Platform

With the launch of Facebook platform for mobile devices a regular Facebook user can access and experience Facebook on various mobile devices and tablets. This is expected to change the phase of social shopping experience in the future as the mobile compatibility can enable more social engagement and can enhance the brand visibility.
Also Facebook with its recent partnership with eBay is expected to encourage developers to create apps for their e-commerce platforms which can bring about a huge increase in mobile commerce.

Facebook Credits

Facebook Credits are form of virtual currency that can be used to purchase a virtual product in any games or application of the Facebook platform that accept these modes of payment. The main aim of the Facebook credits system is to make social commerce easier and in a personalized manner. According to a recent survey Zynga has made $ 575 million in revenue on sale of the virtual goods in 2010 and they sell about 38,000 virtual items every second.

Facebook has been clearly trying to increase the credit usage as they continue to offer free credits through promotional giveaways and incentives. Facebook credits can be used to purchase of digital goods like Skype calls, movies, music, games etc. Facebook have also lately launched the credits for mobile applications as well and now HTML 5 developers can use Credit as their payment mechanism.

Facebook Open Graph

With the new Facebook update the Open Graph 2.0 the regular Facebook actions will go beyond like, share, send, recommend etc. Facebook will start using verbs and nouns like “Bought”, “Want”, “Wear”, “Owns”, Listening etc.
So in short E.G “Mahesh Narayanan likes Samsung” will become “Mahesh Narayanan owns Samsung” 
Facebook Open Graph is going to bring about a huge change in the way social commerce is performed considering anyone with permission can pull your Open Graph using Facebook’s API. For Example a company can work on a way to personalize the featured purchase section appearing on your webpage of the merchants store according to the number of “likes” from Facebook.

Facebook Places and Location tab

Facebook has also launched a location tab for the Fan page which enables cataloging the location for a Fan page. Several brands have already integrated this to their Fan page and all the check-ins which happens will be aggregated to a parent section of the Facebook Fan page. Now people will be able to search for the location of the store jut by the zip code.

Facebook Social Plugins

Use of Facebook like, share and send button and connection integration in websites have seen to tremendously increase the referral traffic to the website. Facebook plugin integration has also helped websites increase the credibility as well as to get a personalized experience for a visitor.

I may not be the most smartest person around but still I read a lot and get to interact with lot of people who are best in what they do. So by reading about my experiences and views your can boost your odds for success.
If you are looking for any questions on how Best to increase your Online Presence, Manage Your Online Reputation or on how to increase your website traffic, SEO or need help with anything of that matter. I can sure try helping you out. And don’t worry I am not looking out for financial benefits :)
Mahesh Narayanan
I may not be the most smartest person around but still I read a lot and get to interact with lot of people who are best in what they do. So by reading about my experiences and views your can boost your odds for success. If you are looking for any questions on how Best to increase your Online Presence, Manage Your Online Reputation or on how to increase your website traffic, SEO or need help with anything of that matter. I can sure try helping you out. And don’t worry I am not looking out for financial benefits :)
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