July 19, 2014
Facebook is helping businesses boost their sales through the world’s biggest online social network. The buy button is active and will let people buy products directly from businesses without leaving Facebook. The button is currently visible at the bottom of sponsored ads, news feed ads and page posts. It is currently being supported by a limited group of several small and medium sized U.S. businesses.
Facebook is prioritizing on the user’s privacy and make the payment experience safe and secure. The credit or debit card information will not be shared with advertisers, as promised by Facebook. Although users do have an option of saving payment information, as part of their profile, for future purchases. Facebook is also looking to expand its role as a marketing platform. The company accounts for 7.8 percent of global digital ad spending, according to eMarketer.
Here is an illustration of what it looks like:
'With this step, Facebook is becoming even more firmly established as a major player in direct response advertising, and though this test is still only a test, it's a definite sign that Facebook wants to restart its efforts to become an e-commerce company as well,' said Debra Aho, an eMarketer analyst.
The Buy button completes the entire purchase flow within Facebook which boosts conversion rates and attract more retailers to the social network. Facebook could eventually earn money by charging a fee in exchange for processing payment. The purchases could be used to prove return on investment to advertisers, encouraging them to buy bigger campaigns. Collecting credit card info could also help with other commerce-related initiatives.
Facebook is also focussing on the mobile platform as nearly 80% of its users access the site on smartphones and other gadgets. Meanwhile, mobile commerce is growing at a rapid pace and is expected to total $304 billion in 2014 (source: eMarketer).