While retailers have been tapping Facebook to show "fans" what's new in stores, to hold contests and to post weekly ads, for many, the next step is building Facebook "stores" that will allow people to shop without leaving Facebook.
Last week, Procter & Gamble led the way with the launch of a "Shop Now" e-commerce tab on its Pampers Facebook page, offering consumers a way to shop without ever leaving the site. The service is powered by Amazon Webstore, marking Amazon's first e-commerce storefront on Facebook. In a statement, P&G said the Pamper's initiative comes a few months after the brand's success with its Facebook pre-sale of Pampers Cruisers with Dry Max, which sold out its 1000-pack allotment in less than an hour.
"We are so thrilled to have such a dynamic, active community on our Facebook page, and want to find ways to provide benefits to our most loyal fans," said Jodi Allen, vice president of North America Baby Care at Procter & Gamble. "Plus, we are also excited to be the first P&G brand to launch these resources and are looking forward to rolling this out to other brand Facebook pages in the future."
Speaking to Dow Jones Newswire last week, Ethan Beard, who runs Facebook's developer network, predicted social shopping would surge over the next twelve months. The article cited a recent survey of 135 leading retailers and consumer goods manufacturers by research firm Altimeter Group that found 86 percent were preparing to launch some sort of social commerce strategy by 2011.
"Social commerce will be big and disruptive," Mr. Beard said, referring to the wide range of social media tools and content, such as user profiles, customer ratings and reviews, user recommendations and wish lists. All hold the potential to make online shopping a more social experience. Mr. Beard noted that brands such as Levi Strauss are embedding Facebook's "Like" button on its site. Children's clothing retailer Tea Collection used it this summer to let shoppers vote on their favorite items, with the winning piece going on sale the next day.
In August, U.S. internet users spent 41.1 billion minutes on Facebook, surpassing Google Inc.'s 39.8 billion minutes for the first time, according to comScore.
"It's inevitable that e-commerce and Facebook will overlap or collide," Scot Wingo, chief executive of ChannelAdvisor Corp., a software maker that helps merchants sell goods on Amazon and eBay, told Dow Jones. "Facebook will be a top-three channel for all retailers within two or three years."
Discussion Questions: How do you think e-commerce will be transformed by Facebook and other social media platforms?