Facebook Commerce

Facebook Commerce White PaperWhat You’ll Learn:

How Facebook Commerce can be used to

  • Increase online sales
  • Increase Facebook fan base
  • Build excitement around your brand

 

 

 

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The Importance of Facebook Commerce for E-commerce Businesses

It is no secret that Facebook dominates the social networking field. Facebook controls more than half of the US traffic to social media sites and has more than 500 million active users who together spend over 700 billion minutes per month on the site. Facebook is now taking on e-commerce, and changing the way that people shop online and interact on social media sites.

Facebook commerce (F-commerce), the ability for merchants to sell products directly from their Facebook Fan page via the creation of a “shop” tab, is one of the fastest growing subsets of social commerce. The Facebook shopping experience gives users the ability to view a product catalog, read reviews, make a purchase, and interact with their friends, all from a company’s Facebook fan page.

The Benefits of Selling Products on Facebook for E-commerce Businesses

Facebook commerce gives merchants the opportunity to succeed by using this viral selling platform to maximize the results of their social media efforts. Selling products on Facebook can help e-commerce merchants:

  • Increase online sales
  • Measure social media ROI
  • Build brand awareness

The Benefits of Selling Products on Facebook for Consumers

Facebook commerce provides a unique experience for online shoppers, giving fans access to Facebook-only sales, exclusive coupons, and sneak peeks at unreleased products. F-commerce helps consumers by providing:

  • More convenient online shopping
  • Special discounts and coupons
  • Ratings and reviews

Facebook Commerce Applications

In order for merchants to sell products on Facebook, they must first install an application that creates a “shop” tab on their fan page. Currently, only a handful of companies provide F-commerce applications. Some offer flat-fee services, while others operate on a revenue-share pricing model. A few of the applications allow consumers to complete the entire checkout process on Facebook, while others transfer the shopper back to the company website to finish the transaction. The following five companies are leaders in this new industry.

Milyoni (Million-eye)
Milyoni helps integrate e-commerce business with social media in a “conversational commerce” site that operates on a performance driven pricing model. Milyoni offers a managed solution instead of a software download, and they provide the necessary technology, hosting, and customer service to ensure a successful Facebook store integration. The goal of Milyoni is not only to increase online sales through a Facebook store, but also to connect fans in a social context to promote customer engagement and loyalty.

Payvment
Currently in its beta stage, Payvment offers a free (for a limited time) shopping application for merchants who want to sell products directly from Facebook. Merchants using Payvment will benefit from the easy installation process, integrated marketing features, and built-in sales tracking. Payvment allows merchants to sell an unlimited number of products and offers domestic and international shipping options. Their promotional features include Facebook fan discounts, the ability to “share” store and item information with Facebook friends, and built in review and commenting capabilities.

ShopFans
ShopFans is a social commerce application created by Adgregate Markets. Their pricing is based on revenue share and is unique to each client. The ShopFans application allows merchants to sell products directly on their Facebook Fan page, and consumers can complete the entire secure transaction without leaving the Facebook site. This application allows businesses to market to their social networks and gives shoppers the ability to post products on their wall, sign up for registries, and participate in exclusive sales. Their goal is to turn “conversations into conversions” by fully integrating social commerce with E-commerce to create a unique shopping experience.

ShopTab
Merchants using ShopTab can chose from three different pricing options ($10/500 products, $15/1000 products, or $20/3000 products) when setting up their Facebook application. When shoppers are ready to check out from the merchant’s ShopTab page, they are taken to the actual business website instead of paying directly through Facebook. This transition from Facebook to merchant website removes any worry of payment delay or security breach. With a low monthly cost and easy self-management tools, Shop Tab is a great way to get involved in Facebook commerce with almost no risk.

SocialShop
SocialShop operates on the belief that combining social media and e-commerce leads to more customers and more sales. SocialShop, created by Big Commerce, offers five programs that range from $24.95/month to $299.95/ month with a $49.95 startup fee. SocialShop is easy to use and connects merchants and customers in a social context by allowing Facebook users to browse products, view product photos, and quickly share products with friends.

Facebook Commerce Strategy for E-commerce Businesses

The secret to a successful Facebook commerce strategy is to come up with interesting ways to involve your audience and add value to their shopping experience. Like most marketing and sales channels, one size does not fit all, so each company needs a unique F-commerce strategy to maximize the success of their “shop” tab. The following five strategies can help you effectively engage your fans and get involved with F-commerce the right way.

  • Identify Your Fan Base Demographics
  • Focus on the News Feed
  • Turn Fans into Evangelists
  • Incentivize
  • Be Transparent

The Future of F-commerce

No matter how successful F-commerce becomes, it is essential to remember that Facebook is a social networking site, not a shopping site. In this early stage, it is unclear how this new sales channel will evolve and grow in the future. It is clear that Facebook commerce is about to revolutionize the way we shop, making it a truly social experience. The question is—how will your business take advantage of this exciting new opportunity?