According to data published on the site, Facebook currently boasts 250 million active users, nearly half of which login at least once a day, making it the 3rd most visited site behind only Google and Yahoo. Following the announcement that the social network released its first e-commerce storefront (1-800 Flowers) last week, with 20 more to debut in the next two months, Facebook seems poised to become a top online shopping destination as well.
Though the website has no immediate plans to make money from these transactions, either through a surtax or issuing Facebook currency, by enabling consumers to make their purchases without leaving the site, they’re promoting a greater level of engagement with the platform. And this comes as no small consolation to a company that focuses almost exclusively on online advertising to generate revenue. Current estimates place that figure at $500 million for 2009.
For the time being, these virtual retailers will exist independently on Facebook and one wonders how they will be incorporated into the site’s overall infrastructure to drive traffic to the businesses, given that Facebook relies primarily on homepages and personal connections for its navigation. It will also be interesting to see if these storefronts will be forced into the one-size-fits-all design of Facebook or if they’ll be able to differentiate themselves with a unique platform. This is an especially important consideration for brands like Apple (though it’s not clear if they’re signing on), that rely heavily on image to sell their product.
And lastly, considering how important the retail experience is to making a sale, particularly within the online environment – information, imagery, recommendations and checkout – I will be anxious to see how the application actually performs in relation to a popular model like Amazon or eBay.
The level of success these early adopters are able to have within the larger context of Facebook will go a long way to determine if Facebook is more than just a social forum for friends. Connecting brands with consumers is something the site has shown it’s capable of doing, but whether they can take them through the checkout line is something we’ll have to see.