Posted February 20, 2012 8:12 am by with 3 comments

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What do Gamestop, JC Penney, Nordstrom and The Gap have in common. They all went headlong into creating Facebook stores and have since shuttered them for their own reasons. One thing all reasons must have in common is that the stores weren’t working. Not exactly a ringing endorsement of the power of f-commerce. It’s also not a condemnation since there are likely equal amounts of stories claiming the opposite.

SF Gate reports

Facebook, which this month filed for an initial public offering, has sought to be a top shopping destination for its 845 million members. The stores’ quick failure shows that the Menlo Park, California-based social network doesn’t drive commerce and casts doubt on its value for retailers, said Sucharita Mulpuru, an analyst at Forrester Research in Cambridge, Massachusetts.

“There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop,” Mulpuru said in a telephone interview. “But it was like trying to sell stuff to people while they’re hanging out with their friends at the bar.”

Interesting thought. There is some merit in that idea for sure. Me personally, I don’t see Facebook as a place to shop but I don’t see a lot of places as places to shop so I am definitely not a good measure of the success or failure of Facebook as a commerce engine.

Of course, Facebook sees it differently (as they should).

David Fisch, Facebook’s director of business development, said in June that the site would make shopping online, previously a solitary experience, more social.

“This is where people are hanging out,” Fisch said at the Internet Retailer Conference & Exhibition in San

With the Facebook IPO on the horizon this is not the kind of news that Facebook wants to have circulating about its commerce efforts for online retailers. Facebook offered no comment for the original article. Of course, being in the pre-IPO quiet period makes that seem more likely and who wants to recognize that something with their service may not be all it’s up to cracked up to be?

Customers had no incentive to shop at Gamestop’s Facebook store rather than the company’s regular website because purchasing online is already convenient, said Ashley Sheetz, who is the Grapevine, Texas-based company’s vice president of marketing and strategy.

“We just didn’t get the return on investment we needed from the Facebook market, so we shut it down pretty quickly,” Sheetz said in a telephone interview. “For us, it’s been a way we communicate with customers on deals, not a place to sell.”

This final quote from the article really is quite telling.

Wade Gerten, chief executive officer of social media developer 8thBridge, previously known as Alvenda, opened a Facebook store for the florist 1-800-FLOWERS. Minneapolis-based Gerten went on to develop commerce strategies for Delta Air Lines Inc., Diane Von Furstenberg Studio LP and denim-maker Seven for all Mankind.

Cracks in the model showed quickly, Gerten said in a telephone interview. Clients “have taken a different approach,” shutting stores or scaling back their offerings.

“It was basically just another place to shop for all the stuff already available on the retailer websites,” Gerten said. “I give so-called F-commerce an ‘F.'”


What’s your opinion? Have you had a similar experience with F-commerce or has yours been something more like Facebook would like to talk about rather than defend?

  • If someone wants to purchase something online, they will typically just go to the company website since that is what they are used to doing. Even if the Facebook page is just as convenient, it may not be as trusted. Given that there have been privacy issues with Facebook, people might not feel comfortable buying from a social site.

  • Bloomberg decided to show only a few failed attempts of F-commerce, and didn’t provide even one brand that succeed in F-commerce (You have to question their motives here).

    We at StoreYa, see enormous traction, there’s an amazing daily growth of merchants, creating their own Facebook shops. There’s no doubt that F-commerce is the next step in the eCommerce evolution, but it will take some time.

    You must provide the merchants with engagement tools, like Fans-firsts, Fans exclusive deals & discounts, this adds an important added value to the social shopping experience.

  • We study shopper behavior as part of any mobile/social marketing strategy for our clients. We have seen time and time again that regardless of customer demographic, rarely will more than 2% of the overall customer target population use fCommerce. Moreover, many don’t consider social networks to be part of their overall shopping experience, whether it be to learn or get information on new products or services.