Facebook has finally decided to close its gifts section so that it can help other businesses to sell things. Facebook Gifts confirmed that it will execute the closure process on August 12th, and put an end to selling gift cards to popular businesses, such as iTunes, Starbucks, etc. Facebook confirmed that almost every team has already been reassigned to various other commerce openings, that includes the Buy button for building ecommerce purchases within Facebook, Custom Audiences, which let brick-and-mortar merchants re-target Facebook ads to present customers, and Auto-Fill that does the job of auto-populating your billing info in other shopping applications. Facebook has a huge potential to make a good amount of money on commerce by selling ads and charging a revenue share for products bought with the help of Buy button. The official statement launched on the shut down by Facebook is “We’ll be using everything we learned from Gifts to explore new ways to help businesses and developers drive sales on the web, on mobile, and directly on Facebook.”
The Announcement of Facebook Gifts
Facebook launched its own Gifts section to a test group in the US in September 2012. According to the acquisition made by a gifting app named Karma, it was a cutesy online shop within Facebook that offered an opportunity to purchase teddy bears, chocolates, gift cards, wine, for friends. The most brilliant and useful part was that it is not essential to know a friends’ address in order to send them a physical gift, which was mandatory on Amazon. Facebook would post a “wrapped” gift to your concerned friend’s wall, which they could open, view a personal message from you, and then asked for their shipping address. For this service, Facebook charges their cut of the purchase price in exchange for promoting Gifts and handling fulfillment with its own warehouses.
Reasons For The Shut Down
Sadly, the Gifting didn’t last for long with Facebook, and the key reason behind this was that a number of the Gifts were nothing more than junk. Most of the people were not interested in spending their hard earned money on sending low quality gifts to their friends and family. One another reason why they have chosen to shut this services down is that they faced difficulties while handling shipping, which was feasible in the continental United States, and they have never come across a dependable way to solve the issues related to distance and localization so that to make Gifts go internationally. Facebook stopped dipping its hands in the pool of physical gifts business entirely in August 2013. It doubled-down on gift cards, which were 80% of sales already. It offered brands their own URLs for their Gift card stores, and focused on personalization by using its collection of interest data to recommend what you should give a friend.
Future of Facebook In The Commerce Field
By eliminating Facebook Gifts, it aims at assisting businesses sell more to the users of Facebook, and they are just doing it for smoothing their checkout flow, show ads, which lead to purchases, and prove that those ads work. The Buy button is an another aspect that let Facebook businesses publish Page posts and ads, which show a Buy button through which people can purchase things without leaving Facebook. It works like this, you can enter their credit card details directly into Facebook, or use a card on file in order to finish the checkout flow in-line, rather than rambling your way by clicking through the website of a merchant.
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