A handful of stores flee Facebook storefronts. Who’s to blame? Facebook, or the store’s lack of insightful use of the platform? See here a video report from Newsy:
Embedded Video Source by Newsy.com
Transcript by Newsy
BY EVAN THOMAS
ANCHOR MEGAN MURPHY
From Gamestop to Gap. J.C. Penney — to Nordstrom.
Traditional brick-and-mortar stores that ventured into online-shopping hookups with Facebook — are now shutting down their Facebook storefronts.
Bloomberg talks with an analyst who says, the reason is simple. Facebook commerce gets an “F.”
“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 …”
The timing couldn’t be worse for Facebook.
It’s about to launch an IPO, at a $100 billion valuation.
Business Insider says, it doesn’t add up.
“Facebook is reportedly looking for a $100 billion valuation when it IPOs. But, its current business doesn’t support that valuation. If you believe it’s going to be worth $100 billion, and eventually much more, you have to believe it’s going to make money from more than just ads.”
But is it really Facebook’s fault?
After all — lots of businesses remain committed to their Facebook profiles.
ZDNet says, simply replicating your storefront online isn’t going to work.
“Here’s the trick: don’t just shove your products onto Facebook users; build a service or feature people will actually want to use with their Facebook friends. Increased sales will follow.”
Forbes agrees. Facebook shopping will have to be a social experience.
“The best way to monetize social media is to empower people to promote products to their friends not for brands to spam you on Facebook. Online shopping experiences are better when they’re social.”
In the meantime, Marketing Pilgrim points out, Facebook might want to take a look in the mirror.
Because, there are things it could do to spruce up online shopping.
“… Facebook stores aren’t offering consumers anything they can’t find more easily on the retailers website. The convenience of staying on Facebook isn’t enough to combat the navigational issues, lack of full store content and potential security issues.”
After all, Facebook has a captive audience of 845 million users who spend oodles of time on the social platform.
Spending oodles of money too — could be a logical next step.
Transcript by Newsy.
(Image source: newsy.com)