Facebook Commerce Application Builds Business

Online, October 29, 2009 (Newswire.com) - Social shopping is going to be big. It is still in its infancy and has many issues to deal with including balancing the business selling products without alienating the very loyal and vocal current users, who prefer a small less intrusive approach to their social network. Privacy concerns and consumer buying trends have been big barriers for social shopping, and overcoming these concerns has not been an easy one. In 2007 Facebook had a PR nightmare with a application called beacon. The program used user profile information to inform potential shoppers and users of the buying habits of their friends in theory to help recommend products. The anger from the fans caused the company to stop the beacon program and issue an apology.

Just a few years later Facebook and other social media sites have been trying to implement less intrusive methods and shopping applications. The site has made significant home page changes including incorporating google adwords to applications in hopes of turning the company into the profitable corporation that investors thought it was when it was valued at 15 billion in 2007. Privacy is still a concern for its users and Facebook employee Austin Haugen commented in his Facebook blog that the company was still tinkering with its email and privacy policy. Some companies are harnessing social media to their advantage, adding a new source of exposure and sales. Zenagen is probably a shampoo you have never heard of, but it has gathered an impressive following online. Using various widgets and consumer interaction portals including its homepage which has an integrated Facebook badge. The young hair loss shampoo company has been able to add a new dimension to its online operations and has become a sizable source of revenue, particular in its younger 20-25 male demographic. "We were very skeptical of social media because we had tried some things that ended up being pretty inefficient, but we were offered the opportunity for the new commerce platform and decided to test the waters. The social commerce platform has increased the company's social reach and sales over 10% within one month of being implemented," said Sam Freeman of Zenagen.

Can social search and shopping be profitable for small businesses? Early adopters of the new social commerce Facebook application, has allowed people to buy products without leaving Facebook, have enjoyed success. Dell is rumored to create over a million dollars in sales from its twitter account, http://www.dell.com/twitter alone. Much of the appeal to social media for companies is the ability to really search and target customers in a way that has never been possible.Although a new phenomenon, it is yet to be seen if social shopping is going to be the next Google search for products, but its future does look very bright.