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1. Facebook e-commerce: the next big thing?
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BIG BRAND STORES FLOP
SAN FRANCISCO Thu Apr 5, 2012 11:40am EDT
As the particular world's largest social network
hurtles towards a $5 billion original public offering,
it's going to are categorized as a lot more stress from Wall Street to locate new resources of profit
growth and reduce its reliance upon advertising, which in turn accounted regarding 85 % associated
with its 2011 revenue.
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"We have seen this with Facebook Credits and also games. So, as quickly as social commerce totally
takes off, it'll simply be organic which Facebook attempts to advantage one of the ways or even an
additional from it."
SAN FRANCISCO (Reuters) - The team involving e-commerce start-ups, backed through a couple of
involving the tech world's many pedigreed financiers, tend to be betting in which Facebook Inc could
turn out to always be able to be an e-commerce powerhouse to rival Amazon.com Inc and eBay Inc.
"The 30 percent model is actually ideal for items together with near-zero expense associated with
merchandise sold," stated Kevin Hartz, head regarding ticketing start-up Eventbrite, which works
closely along with Facebook. "Social commerce might be bigger than eBay," he argued.
"Facebook includes a large chance to monetize e-commerce," said Christian Taylor, chief executive
involving Payvment, the startup that will operates thousands of Facebook stores. Whenever
purchasers and sellers post items, their own Facebook identities tend to be attached, providing
customers more confidence within the transactions, Donato said.
Amazon revolutionized internet shopping simply by crunching lots of customer and buy information
to come track of relevant, personalized recommendations. Chief Executive Jason Goldberg
mentioned "tens of thousands" opted in.
Some entrepreneurs and also investors increasingly consider "f-commerce" - meaning e-commerce
upon Facebook - is the answer.
Then there's Oodle, a new start-up headed by Craig Donato, which runs Facebook's official
marketplace, which in turn boasts more than 3 million special monthly users. Huge suppliers which

2. includes J.C. in the same vein, Facebook's mix of data, analytics and payment technology could fuel
the particular subsequent generation of e-commerce, Schwerin said.
"E-commerce is a massive group using very good tailwinds and also it can be a natural transfer
regarding Facebook," mentioned Sam Schwerin regarding Millennium Technologies value Partners,
that owns Facebook shares along with features a stake inside BeachMint.
By Alistair Barr
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Others downplay the opportunity of Facebook Credits, saying physical merchandise provide a lot
thinner gain margins when compared with virtual products.
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BeachMint co-founder Diego Berdakin mentioned his organization had create any stay video event
known as StyleMint.tv last holiday season featuring a quick physical appearance by simply Facebook
CEO Mark Zuckerberg's sister, Randi Zuckerberg. Start-ups for example BeachMint, Yardsellr,
Oodle and also Fab.com tend to be springing up using novel ways to steer Facebook customers in
order to not just interact with pals on the social network, however to look as well.
MAKING MONEY
Yardsellr, were just available in 2010 through former eBay manager Danny Leffel, organizes folks
directly into 3,000 communities, or "blocks," according to common interests. "They hold the
infrastructure and team to pursue that."
More than 50,000 Facebook users watched the demonstrate along using a "huge percentage" bought
something, Berdakin said, adding, "At the actual time, it had been the biggest day inside our history
in relation to sales."
"People have usually shopped making use of their friends; now that they anticipate it online," Fisch
wrote in the December blog. "But selling a new TV using thin margins, that will model will just not
apply."
. "Companies which think differently with regards to social will discover success."
Facebook Director involving Marketing and Advertising Mike Hoefflinger announces a new
''Premium upon Facebook'' support because he delivers a new keynote address from Facebook's
''fMC'' global event regarding marketers throughout new York City, February 29, 2012.
Backed by tens of countless dollars via opportunity richesse firms just like Accel Partners along with
Andreessen Horowitz, as well as other large investors such as Goldman Sachs, these start-ups are
generally pushing out shopping apps, hosting on your internet garage sales and testing out new
business models in Facebook.
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