Facebook as the Next E-Commerce Platform

Fifteen days ago Facebook filed for its initial public offering. The anticipation of this moment has been huge. New opportunities for this social networking website can become very significant for companies and their products. The Facebook IPO promises to give their site the leading e-commerce platform on the Internet.  Their impressive 800 million registered users and an estimated share of 28% of the U.S. display advertising market could easily transform Facebook into the main site of Internet marketing for companies and their products.

What Facebook does so well is filter products and brands to the user, so people have more of a probability to like it, share it, or even buy it. By using Facebook’s “Like” functionality, brands and products are able to get through to users own close friends and avoid the clutter of non-targeted ads.

The “Like” button has become a critical marketing tool and a form of word of mouth through the Internet. This creates a new link building strategy for Internet marketing companies to implement and use to increase their clients marketing online.

Facebook’s IPO also promises to increase investment to become a central challenger in establishing e-commerce brands. If an e-commerce platform were added to the social network together with their huge consumer information source, Facebook would rival both Amazon and eBay’s e-commerce platform. This endeavor will not be as simple as it may sound since Facebook will need a large investment and quick growth, but these are two things that Facebook has proved to be no issue.  Companies such as 8thBridge and Payvment are enabling other companies to sell products directly on Facebook. Research has shown that promotions offering Facebook credits and discounts posted on Facebook or shared by friends have generated a huge increase in transactions.

It will be interesting to see if users really do start to buy on Facebook and increase their amount of product and brand shares. The potential is there, it is a matter for the people and enthusiastic, willing companies to help it become a success. How will you respond to the new potential E-commerce platform?

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