Social Commerce and The People’s Republic of Facebook

Posted: February 14, 2011 in Economy, Facebook
Tags: , ,

One in eleven human beings are now on Facebook.

In fact if Facebook were a country it would be the world’s third largest with a population of 585m (it grew by 248m in 12 months by the way!)

Now consider that the entire population of Facebook by definition has access to the internet and therefore has more economic power than possibly any other country.

So when people claim that China is the world’s fastest growing economy – in fact it has officially just taken over from Japan as the world’s second largest – just think about the power of People’s Republic of Facebook.

Of course a Venn diagram would show a huge overlap with the other physical economic giants on the planet – the USA of course would take the biggest slice (147m Americans are registered on Facebook), but surprisingly, the UK comes in at number three (28.4m) – Indonesia is second (32.1m)

Given these numbers, it’s no wonder that more and more brands are looking to monetise their presence on the planets largest social network and so over the last few months we are seeing a rise in the phenomenon of social commerce, but recently renamed ‘f commerce’ for obvious reasons.

There appear to be two distinct ways in which people are directly trading from their Facebook page. One is to show merchandise with ‘click’ to buy buttons, but that simply then take you to the normal online store.  This is simply a shop window for the main store. Coca Cola and Barneys New York have taken this tack, by simply adding a ‘shop’ tab on their page.

The other approach is to drop in a store that pretty well replicates the brands online store, but is housed within the Facebook page, allowing fans to shop and checkout, all without leaving Facebook. An API can manage stock levels and make the whole process seamless.

How this will evolve is to be seen. My third party applications allow brands to drop ‘shoplets’ into their Facebook page and the technology behind these will no doubt develop rapidly over the next few months.

But the rush to F Commerce is most certainly on.

A word of warning however. F commerce makes your focus on customer care even more critical. If this rush to push products to the potential market of 585m consumers gets in the way of listening to them and understanding what their immediate needs and wants are, then they will find themselves not even a click away from telling their friends and other fans of the brand just what they think!

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