1. The Future of F-Commerce: The Market Destination or
Social Futiliy?
Hessie Jones, June 29, 2012

2. E-Commerce is going to explode !
As of 2011:
• 179 MM consumers
14+ research products
online
• 83% purchased
online
• 18-29 YO citing
Internet as main source
doubles
• 3 major sources of
growth: mobile, social
commerce and daily
deals
http://mncomarketing.files.wordpress.com/2011/07/usa-e-commerce-trend3.pdf

3. “It is widely contended that F-Commerce
transactions will exceed Amazon’s annual
sales over the next 5 years.”
http://searchenginewatch.com/article/2172155/Is-F-commerce-a-Flop-Why-Retailers-Arent-Sold-on-Facebook

4. Vevo is pulling its music video content from
Youtube and shifting to Facebook’s Open Graph!
• 200% increase in daily registrations since the change to Facebook-only registration
• 600 percent increase in published actions on Facebook from February to March
• 130 percent increase in referrals from Facebook to VEVO from February to March
• 60 percent of Facebook referral traffic comes from Open Graph stories
• UK Stats: 177K monthly video streams in January, 23% more monthly viewers

5. Viddy is attracting celebs like Snoop Dog since
its integration with FB Open Graph!
• Integrated with FB in February 2012
• 1.5 million joined Viddy
• growth from 60K to 920K MAU
• 2X increase in average daily sign-ups with Open Graph
• 9MM Viddy interactions on FB
• 90% of new users join Viddy through FB
• 45% of all uploaded videos are shared through FB

6. “... If we fail to maintain good relations with
Zynga, we may lose a significant Platform
developer and financial results may be
adversely affected”
Facebook 2011 Revenues 3.7B
• 85% from Advertising
• 12% from Zynga
http://searchenginewatch.com/article/2143126/Facebook-IPO-Show-Ad-Revenue-Increased-69-in-2011

7. Turn FB Credits into a payment system for all
goods within Facebook
http://www.nytimes.com/2011/03/09/technology/09facebook.html?_r=1

8. “An economy that walls itself off from the
rest of the world is doomed to failure”
“
Facebook credits are exactly that
FACEBOOK CREDITS. They are
controlled by facebook, can only be
sourced from facebook approved
locations and are held onto your
facebook account by facebook.
xxx does not have the ability to do
what you want as facebook doesnt
allow it.. If you go to the facebook faq
section on credits it specifically
states that credits are not
transferable to another account...
What you want wont happen
because facebook wont allow it to
happen..
”
http://forums.kixeye.com/threads/137415-Send-friend-fb-credits

9. “BREAKING NEWS: Facebook shifts
approach to payments!”
Changes encourage companies
beyond game developers to sell their
wares on the Facebook platform:
• Facebook users will be able to
subscribe to services that require
monthly payments.
•Users will also be able to pay for
things on Facebook in their own
currency, rather than credits.
http://forums.kixeye.com/threads/137415-Send-friend-fb-credits

10. “It (FB Store) ...was like trying to sell stuff to
people while they’re hanging out with their
friends at the bar”
“There was a lot of
anticipation that
Facebook would
turn into a new
destination, a store,
a place where
people would
shop,” ......It was
basically just
another place to
shop for all the stuff
already available
on the retailer
websites”
Sucharita Mulpuru
Forrester

11. “Facebook is simply NOT the place where
users want to go to buy things”??!!
• Fans “like” brands primarily for one reason – special discounts and sales
promotions.
• Likes influence purchase likelihood among friends of fans.
• Liking a brand’s page or product is often a post-purchase activity.
• Demographic differences play a role, with Millennials being the generation most
open to shopping on Facebook.
• 34% of respondents said
they would never purchase
anything on Facebook,
• but nearly 20% already
have

12. F-Commerce is not fully defined... at least for
large retailers
•Lack of measurable
ROI
• Doubt targets will
purchase through a
social network
• Social is largely
awareness and
brand building
•Potential for
commerce is there
but not a priority
SOURCE: CHRIS SCHAUMAN, NOKIA AND SOCIAL MEDIA, MARCH 2010

13. The Few Successes

14. “From our (SMB) view, f-commerce is not only
alive and well, it is thriving despite the fact
that some big brands have stumbled.”
Of the 140K storefronts using Ecwid’s app
• 15% total SMB revenue came from Facebook
stores
• In Q1 2012, that figure rose to 17.7 percent
• FB generated revenue increased by 40% in
2011
Of the 100K sellers on Payvment
• 37% of users selling exclusively through FB
•60% confirm customers do not leave FB to make
a purchase
http://thenextweb.com/socialmedia/2012/03/19/while-major-retailers-shutter-f-commerce-stores-report-shows-15-additional-revenue-for-smbs/

15. Re Timeline: Facebook’s goal was to make
Pages more about storytelling than
product selling. And it worked.

16. FB Covers: No Selling Please!!!

17. “Citizens of the world, Your personal
information is not your own”
•54% of US
consumers said they
did not feel safe
buying products or
services on Facebook
• 8 % said they felt
extremely safe
This reflects a wider
concern: 6 in 10
Facebook users in
the US do not trust
Facebook to keep
their information
private.

18. The Future of F-Commerce? By All Accounts,
the Future is Rosy:)
• E-Commerce is an inevitabilty and social is already
an instigator.
Text
• By all speculation, Facebook is primed to lead the
charge.
• Facebook is now serious as a payment platform that
becomes truly “global” in nature.
• Big brands are still figuring it out. Many are hesitant
to step up to the market that is Facebook.
• SMBs seem to be fuelling early success.
• Timeline may not necessarily benefit the online
merchant in the short term but it mitigates user churn
• Open Graph has significant impact on visibility and
shareability
•Data collection is a valid hindrance that must be
addressed.

19. “The customer journey must be defined...This
just isn’t about Facebook.... but about all
emerging channels where customer attention
Text
becomes increasingly distributed”
1. Facebook is still a social space and
should not be treated as just another
marketing exercise.
2. Interaction with customers is vital to
maintain your business' social
credentials. Don't let your business
become just another faceless retailer.
3. Remember that Facebook users talk
to each other. Treat them with
respect.
4. Integrate Facebook into your
enterprises other activities. Today,
retailing is all about delivering a
seamless experience for the
consumer.

20. Thank You
hjones@jugnoo.com
https://www.facebook.com/hessie.jones
twitter: @hessiejones
http://gplus.to/hessiej