F-commerce (Facebook commerce) is a type of e-commerce where brands use Facebook to sell products. With 25% of the 700 million users on Facebook connecting with brands on the social network site, f-commerce is becoming an increasingly popular form of e-commerce. The top three brands on Facebook (Coca-Cola, Starbucks and Disney) all sell products directly via their page.
Why Use It?
- There are millions of people using Facebook and an increasing amount of time is being spent on the social network, so it’s a great way for brands to engage with customers and increase sales opportunities by selling products on their page.
- The ability to offer unique discounts and offers to Facebook fans.
- 50% of consumers use social networks for product referrals, learning about offers and to seek advice from existing customers. Consumer recommendations are the most trusted advertising medium for Internet users so it’s a good space to dominate!
- The use of smartphones. Time spent on social networks via mobile browsers has significantly increased from 6.5% in 2009 to over 11% in 2011, which is fuelling the growth of f-commerce.
- Brands can use f-commerce in different ways. They can use it for fan stores (offering fan merchandise - Disney), full stores (sell all products to drive sales-ASOS) and as a CRM platform (drive customer experience - O2 and Starbucks).
EXAMPLES:
- ASOS - Launched a fully transactional Facebook store which allows people to buy its entire range from within Facebook itself. With 1,300 products added each week they “have millions of visits and millions of pounds coming from Facebook to ASOS”.
- Odeon Cinema - Odeon is looking to sell tickets through a transactional Facebook store as an additional way to drive people to its cinemas. It will allow people to purchase tickets without having to leave the social networking site.
With brands realising the potential of selling products via the largest social networking site, f-commerce is beginning to gain popularity in the UK. With ASOS leading the way in the UK, French Connection, Heinz, P&G, O2 and others are following the trend. It’s easy to see why!