ECommerce, Facebook and the Future of Marketing

          ECommerce is an emerging trend on the Internet, which allows users to exchange goods without the barriers of time and distance.  Recently, Facebook has put a plan into action to utilize this feature by testing out a new mobile payment feature on its website.  Although this announcement does not mean that this social media site will be fully immersed in Ecommerce, it is definitely a significant step in that direction.  According to Facebook spokesperson Tera Randall, the goal of new test is to simply, “test how we can help our app partners provide a simpler commerce experience.”  These “app partners” of which she speaks are an essential aspect of social media in general; providing the opportunity for money to be made by companies utilizing Facebook’s (and other sites) massive following.  During the test itself, personal information that has been provided by Facebook users will automatically be filled in when making purchases from mobile applications. Facebook's new development is explained in this article.

            The most important takeaway of this article is not in the test itself, but instead the future implications that which it could hold.  Should Facebook actually launch the payment feature, it would enable the site to track the numbers of purchases from specific partner sites.  This would provide valuable data, and evidence of just how great of a marketing impact that Facebook can provide.  This site aims to be a location that which ecommerce transactions occur frequently, and in doing so becomes a pioneer for social media in general to become involved in ecommerce.  This shift may not occur without friction, however, as many are wary of how willing people will be to provide secure financial information to a social media website.

             Should a shift occur that brings significant ecommerce to the sphere of social media, it would mean that businesses would need to dramatically alter their marketing strategies and business models.  Limited transactions already do take place on social media, and the effects have already been massive (i.e. Farmville).  Due to the extensive amount of people involved with social media (over 1 billion on Facebook) and the ease of which they can communicate with eachother, social media would become a primary, if not the primary, target for marketing in general.  If a person could simple log onto Facebook and get their shopping done through various apps and experience a smooth transactional experience, there would be little reason to shop in other locations.  Marketers and managers should pay close attention to this story, as its outcome will have very significant implications.