Social Commerce

Bullish or Bearish on F-Commerce? The FT Opinion [Infographic]

The Financial Times has run a piece on f-commerce (archived below) by April Dombosky entitled Companies Embrace the F Word.

The piece cites a quotable Bob Pearson, ex-head of social at Dell who is bullish about f-commerce “I think Facebook and Amazon will be squaring off as the two e-commerce titans in the future”, but contrasts this with f-commerce ‘bears’ such as BIA/Kelsey analyst Jed Williams who says social and credit cards just don’t mix (really?).

So are you an f-commerce bull or f-commerce bear?

We’re bulls – and think concerns around f-commerce are more of a reflection of natural consumer conservatism than f-commerce itself.  Faster horses and all that (see great TabJuice infographic below).   But we think smart f-commerce bulls will not seek a face-off with Amazon – Amazon is an online hypermarket – and unbeatable on its home territory; Facebook will succeed as a platform for fan-stores and loyalty-boutiques.  Your thoughts?

FT Archive

Companies Embrace the F Word 

July 29, 2011 by April Dombosky

According to research from Booz&Co, about $5B worth of physical goods are sold on social networks today.

Most people think of Facebook as a place to check out photos from last weekend’s party. But increasingly, the social network is becoming a destination for buying airline tickets, nappies and soap.

Procter & Gamble, Levi’s and Delta Air Lines are among a growing number of companies experimenting with building Facebook storefronts and forging into what is now being called ‘f-commerce’.

The actual number of people shopping on Facebook is still so low that most companies see the move as a way to study consumer behaviour more than a moneymaker. But some experts believe f-commerce could eventually overtake some established e-commerce companies.

“I think Facebook and Amazon will be squaring off as the two e-commerce titans in the future,” said Bob Pearson, author of Pre-Commerce and former head of social marketing for Dell.

About $5bn worth of physical goods are sold on social networks today, according to research from Booz&Co, with the social commerce market expected to grow to $30bn globally by 2015.

A growing crop of start-ups, including Milyoni, ShopIgniter and 8thBridge have been securing millions in venture capital investments in recent months in the race to become the leader in the Facebook storefront business.

But some analysts are sceptical that people will want to enter their credit card information on a site where they’ve logged on to socialise.

“Most users are just not willing to go to Facebook to buy something,” said Jed Williams, an analyst with BIA/Kelsey. “There’s more evidence that Facebook – the recommendation engine and the social graph – can be a conduit to commerce. But direct commerce, there’s not as much compelling evidence that that has stuck yet.”

TabJuice Infographic: Getting Over Shopping Technology Fears


Chartered psychologist specialising in consumer behaviour, wellbeing and technology. Certified CX professional experienced in Design Thinking. A researcher, writer and speaker, Paul is head of Digital Insight at SYZYGY.

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