Tagged: Future Gazing

by Adrian :: 3.04.11

The Big Bang of F-Commerce

Notice the website address?

It’s a matter of time—within the next five or so years—before more business will be done on Facebook than Amazon Sumeet Jain, Principal, CMEA Capital

Take a look at the snap I took in the London underground. You’d expect it to be Gillette.co.uk – but no, it’s facebook.com/GilletteUK.

At the time of writing let’s set the scene: if Facebook were a country it would be the third largest on earth!

Facebook is becoming the world’s largest marketplace. Take a look at Digital Tomorrow Today’s piece on 10 Facebook Facts, UK brands cannot ignore.

Facebook now accounts for 1 in 6 page views in the UK, that’s twice the number of page views received by Google.

As Facebook camps at the offices of the Financial Services Authority (FSA) waiting for their banking license, we’ll soon see the ability to cash-out of Facebook credits. As soon as we can do this please hold onto your hats: we’re about to experience the “Big Bang of F-Commerce“. Facebook credits could become the official currency of the online economy.

Each step closer to Facebook’s FSA license is another nail in Paypal’s coffin. In an imminent massacre, Facebook has enough users to obliterate Paypal and other Merchants creating a new economy – the Facebook economy. It’s not just about Facebook scooping up the existing economy it’s more about the new economy it creates. Facebook will empower small business. It has never been viable for low value items to be sold online because the online transaction costs are too high and that’s ignoring the investment required to create an engaging e-commerce site and then there’s the challenge of driving traffic to the site: never an easy proposition.

So here comes Facebook bringing the transaction costs down to basis points. Without investment, Facebook will allow us to create an online store at the touch of a button in the world’s largest marketplace and drive viewers to our site through the good old fashioned power of “Word of Mouth”.

And it’s not just about transacting online – a future Facebook payment system would most likely allow for purchases both online and at the point of sale. Using Facebook Credits, an individual could one day walk into a retailer and use their NFC-enabled mobile phone to purchase goods. Facebook could combine payments, loyalty, discounts and viral marketing all delivered via a mobile phone.

For further reading why not pay eConsultancy a visit?

In three to five years, 10 percent to 15 percent of total consumer spending in developed countries may go through sites such as Facebook Mike Fauscette, Analyst, IDC Consulting

Anyone who still believes in 2010 that Facebook isn’t going directly drive a massive commerce opportunity for merchants and retailers alike on that platform will find themselves this time next year in 2011 wishing for their own Christmas miracleKaren Webster, President, pymnts.com.

 

There are many things you could be doing to ready your business for this opportunity. Please get in touch to chat through a few ideas.