Facebook has recently announced a new commerce venture into the world of physical goods. The online social giant is expanding its territory by offering a basic gift giving service. The service will include small items such as chocolates, trinkets, and products from participating partners such as Starbucks. The belief stands as: “Real friends, real gifts”. New to the world of online goods, it will be almost impossible for Facebook to compete with pre-existing giants that have established shipping infrastructure such as Amazon. When I personally think of Facebook, a virtual world of social connection comes to mind. Face to face interaction along with tangible goods are not included in this idea. It’s about time Facebook expanded it’s image with the use of online goods. By analyzing Facebook’s history in attempts to generate revenue through outlets other than games and advertising, I expect the gift giving service to be a fad that builds momentum quickly; unlike a few years ago when Facebook attempted to introduce a virtual gift giving service that lost popularity faster than it could even be marketed. As no current records stand on Facebook’s earning’s in the physical good sector the only insights into it’s possible success is it’s massive pre-existing user base. The service will also be accessible via mobile phones, a service that Amazon currently falls behind on. In the end, I wouldn’t say so much “Watch out amazon.” But rather ‘koodos’ to you Facebook for expanding your brand into a market place that holds much room for growth.
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