A group of e-commerce startups, backed by some of the tech world's most pedigreed financiers, are betting that Facebook Inc can become an e-commerce powerhouse to rival Amazon.com Inc and eBay Inc.
As the world's largest social network hurtles toward a US$5bil (RM15bil) initial public offering, it will come under more pressure from Wall Street to find new sources of profit growth and reduce its reliance on advertising, which accounted for 85% of its 2011 revenue.
"People have always shopped with their friends; now they expect it online," Fisch wrote in a December blog. "Companies who think differently about social will find success."
But despite that huge base, Facebook is primarily a way to connect with friends, and not an online shopper's first destination. Big retailers including J.C. Penney, Gap and Nordstrom had previously set up stores on Facebook but shut them after generating few sales.
BeachMint co-founder Diego Berdakin said his company had set up a live video event called StyleMint.tv last holiday season featuring a brief appearance by Facebook CEO Mark Zuckerberg's sister, Randi Zuckerberg. For about two hours, they showcased BeachMint products that people could buy with one click.
More than 50,000 Facebook users watched the show and a "huge percentage" bought something, Berdakin said, adding, "At the time, it was the biggest day in our history in terms of sales."
Gross merchandise sales, a measure of the value of products, has been growing about 30% a month, according to Leffel.
"Social commerce could be bigger than eBay," he argued.
Courtesy published by TheStar: Facebook e-commerce the next big thing?
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