F-commerce became a popular marketing buzzword last year, as brands set up online stores on Facebook to sell physical goods. But have stores grasped f-commerce yet or is there a long way to go before social selling succeeds as a business model? Anton Gething, co-founder and product director at nToklo, takes a closer look.
Facebook commerce is dead or, at least, its days are starting to look numbered. Until last week, f-commerce appeared to be a quick and easy answer for brands and online retailers looking for a swift entry into the increasingly popular world of social commerce (s-commerce).
However, the recent announcement that Gap, J.C. Penney, and Gamestop, amongst other retail brands, are closing their respective Facebook stores begs the question – if the largest social network and some of the biggest brands can’t make f-commerce work, how can smaller retailers and brands be expected to succeed?
So, with huge brands showing their dissatisfaction with the value of a Facebook store, what are the alternatives for brands and retailers looking for a way in to social commerce?
Please find some comment below from Anton Gething, Co-founder & Product Director at nToklo, the social commerce and recommendations experts:
S-commerce is something often discussed as a natural progression of two successful market arenas – social networking and e-commerce. However, with forays into s-commerce to date amounting to little more than adding a ‘Like’ button or setting up a Twitter feed, the evidence suggests that it’s not yet the sum of its parts. When Facebook launched its marketplace, offering retailers and brands a storefront on the social network, many heralded the beginning of Facebook commerce. However its underwhelming adoption and the recent announcements that Gap, J.C. Penney, and Gamestop, amongst others, are closing their Facebook stores, it begs the question that, if big brands have lost faith in f-commerce, then who can make it work?
“There are an increasing number of examples to illustrate the fact that f-commerce runs the risk of brands and retailers becoming a ‘dumb pipe’. Extrapolating the f-commerce model – if clothing manufacturers continue to try and sell their products through Facebook stores, the consumer quickly becomes used to engaging with Facebook to make their purchase, without having any meaningful contact with the brand that they are buying from. It is this approach that could lead to brands and retailers losing all of their brand relationships online – driving customers to a virtual mall and away from the brand itself. This goes against the original goal of using Facebook as part of your s-commerce strategy in the first place. In addition, retailers run the risk of becoming beholden to the likes of Facebook for their online presence and brand engagement – a very risky business model.
“While f-commerce launched with a bang, we have been saying for some time that this approach will only have short term success. F-commerce is not a recipe for long-term success in the world of s-commerce, which arguably has the potential to be one of the biggest revenue generators for retailers in the coming years. To be successful, s-commerce must put the consumers first and content second, providing the social engagement features with their brand and consumers throughout the shopping experience. Done correctly, s-commerce could be very powerful, not to mention profitable, and will breed brand trust and shopping confidence. One thing is for sure though, recent departures from the f-commerce landscape signals a lack of faith in the Facebook offering.”
By Anton Gething
Co-founder & Product Director
nToklo
www.ntoklo.com/
