Home  › Social › Social Commerce

Why Facebook Storefronts Fail

  |  February 22, 2012   |  Comments

Executives from startups contend that commerce can succeed on social networks, but requires new approaches.

Executives from social technology startups said commerce on Facebook requires more than opening a storefront.

Speaking at the OnMedia NYC conference on Tuesday, executives offered up several reasons why four high-profile brands - Gamestop, Gap, J.C. Penney, and Nordstrom - reportedly shuttered their Facebook storefronts over the past year.

"Opening a storefront does not mean you have a social commerce strategy," said Justin Yoshimura, CEO of 500Friends, which offers social loyalty technology for retailers. "Consumers want to shop on your store and want to interact with your brand on Facebook."

In response to a question by attendee Neil Glassman, executives speculated on additional reasons why businesses pulled the plug on their Facebook storefronts. They included:

  • A brand's e-commerce website typically gets more visitors than its Facebook page.
  • Facebook commerce shouldn't be narrowly defined as storefronts. Instead, it encompasses other activities, such as loyalty programs and rewards.
  • And commerce on Facebook is still in its experimental stages.

Executives from social technology companies also pointed to approaches they are taking to advance commerce on Facebook and other social platforms.

Horizon Studios CEO Janice Diner, for instance, said her company developed a social sales incentive and training platform, which is designed to enable brands to reward and engage with sales and customer service teams.

And SocialGift CEO Mo Govindji said his company's application can be used to encourage "group gifting," whereby friends on Facebook can team up to collect contributions and buy a gift for another Facebook friend.

Lastly, Yoshimura said Pet Food Direct worked with 500Friends to develop PFD Rewards, a program on the brand's Facebook page and website. Once someone enrolls in the program, they can earn points for referring friends, placing orders, and other activities. Participants can then redeem the points for rewards, such as pet food donations to needy pets.

petfooddirect-rewards

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Anna Maria Virzi

Anna Maria Virzi, ClickZ's executive editor from 2007 until 2012, covered Internet business and technology since 1996. She was on the launch team for Ziff Davis Media's Baseline and also worked at Forbes.com, Web Week, Internet World, and the Connecticut Post.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

WEBINARS

Jobs

    • Web Writer
      Web Writer (Money Map Press) - BaltimoreDo you have a passion for the markets and investing, and writing? Do you want to spend your days providing...
    • Web Production Specialist
      Web Production Specialist (Money Map Press) - BaltimoreMoney Map Press is looking for a self-starter to perform and oversee the production of daily...
    • Internet Marketing Campaign Manager
      Internet Marketing Campaign Manager (Straight North, LLC) - Downers GroveWe are looking for a talented Internet Marketing Campaign Manager...