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Widespread Store Closings Show Facebook Isn’t A Retail Destination

Facebook stores closeWe share, converse, play, poll and interact on Facebook—so why not shop, too? A recent rash of Facebook store closings indicate that, although Facebook is many things to many people, they don’t go to Facebook to shop.

Brands including Gamestop, J.C. Penney, Nordstrom and Gap all opened Facebook storefronts—and have subsequently shuttered them due to inactivity. Initially, the world’s largest social network seemed like an ideal extension of a company’s retail brand.

Recent experience, however, has proven otherwise. So what gives? Consider this perspective from Forrester analyst Sucharita Mulpuru, quoted in a Bloomberg story: “ ‘There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop. But it was like trying to sell people stuff while they’re hanging out with their friends at a bar.’”

Mulpuru’s viewpoint is certainly valid. After all, Facebook is a social network—not a shopping network. You can’t blame brands for trying to further leverage their Facebook pages by converting their audience into purchasers, but it’s not wholly surprising that Facebook users prefer to spend their time interacting and sharing, not shopping.

Of course, this retail trend highlights a critical component of any digital marketing strategy, and one that we can’t emphasize enough to all of our clients. Your web presence must begin with a strong, optimized website as part of your larger SEO plan. Platforms like Facebook are undeniably powerful, yet they exist to drive traffic to your website—and if you’re a retailer, you better make sure that your online storefront is user-friendly and representative of your brand. Facebook isn’t the end-all, be-all of your online presence; instead, it’s one of many tools that, when used as a whole, can help you attract new customers, build relationships and better engage with those who are already fans of your brand.

And another thing? We, as people, are largely creatures of habit. And Facebook just isn’t a shopping portal. We’re already used to shopping with online retailers (or at brick and mortar stores). Asking us to change our habits by buying on Facebook is a big step—and one we’re not yet ready to take. Sure, Facebook is evolving into a more robust social platform that encourages more specific, social forms of sharing and interaction. Yet it’s not likely to morph into an online retail destination—at least not in the near future.

Are you surprised that brands have had trouble with Facebook stores? Or do you think selling merchandise within Facebook is a strategy that doesn’t make sense? Is there a brand you know of that’s successfully selling on Facebook – we’d love to hear about it.

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  • Rosemary

    Gonna frame this one.  I wonder if it also has anything to do with people not trusting Facebook (or its embedded apps) with credit card information?  

  • Anonymous

    Not trust Facebook? Clearly you jest! Good point, Rosemary. But I also think that people just don’t go to Facebook to shop. They go there to hang out, talk, share, etc.

    I always love seeing you show up here …. it makes my day!

  • Eric Schultz

    Notice that the companies mentioned in the article are larger corporations that do not have that personal interest element…my 2 cents is that the local mom and pop shops can still see great success with Facebook, due to the more personal feel and conversation element within the local demographic….So, I am not surprised that the larger  “corporate” brands haven’t had the anticipated success, but don’t count out the local shops. 

  • Anonymous

    I agree, Eric. And think there is an opportunity for small businesses on Facebook. But I’m not sure they (sweeping generalization) collectively know (yet) that Facebook is for engaging, not for selling. I say that because I have many clients – large AND small – who still don’t get that.

    I think if you make the right kind of offers, at the right time, ecom on Facebook can work. But the science is figuring out what those are. And I’d love to see or hear examples of businesses who are successfully selling Facebook. If you run across any, send ‘em my way!

    Thanks for stopping by! Always interesting in swapping gray matter!

  • Anonymous

    I’m convinced to sign up a fiber optic internet recently because their marketer managed to find me in twitter while I’m asking for fiber plans opinions on twitter! 

    The marketer managed to answer all my questions and even offer a good promotion!

    Other large telco can’t even have the man power to answer my emails promptly, or even answer my calls within 30 minutes!

    I’m convinced that the old corporation who don’t get social network will die off quickly…the small & nimble ones will survive with up to date social network PR specialist working their rounds 24/7 to poach customers in twitter…& probably facebook as well…but twitter have a better reach as their tweets are PUBLIC!

    Take that facebook!

  • Anonymous

    Excellent points Simon! And I’ve had the same experience with customer service and outreach on Twitter. And yes, in many instances, Twitter does have a better reach. That’s one of the reasons I love it so — no walls. You can talk with anybody and anybody can talk with you. Love it!

  • Anonymous

    Great info, Mia … so great that I just pinged you to write a guest post about this topic! Looking forward to seeing what you have to share – and learning more about StoreYa.

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