Itu Rathore .

What is Zuckerberg and his team up to?

The two tech giants, Google and Facebook, both are highly dependent on ad dollars. In fact, situation of Facebook is more concerning as advertising accounts for 98% of the company's revenue and brands are actively slashing their marketing budget now. The market scenario in months to come is expected to be more worrisome and Facebook is actively accepted that.

Is Facebook Shops an initiative to have alternate a avenue for revenue from it's humongous userbase of 2.6 billion users?

Originally Posted Here
1 Comment

Nishit Kumar Madia

Well the article is nicely put and has fairly provided the Facebook side of story about finding alternate avenues for revenue growth , but i would like to take all of it with a pinch of salt

1) The article talks about replacing ebay and amazon - Wellselling is the core competency of amazon and e-bay , it offers services like FBA , scheduled delivery options , native logistics and warehousing service etc . While i agree that facebook can give a more varied variety to the buyers since they would get to see the products which couldn't yet make it to the amazons and e-bays of the world , but such buying habits would not outplay the habits of shopping from amazon and e-bay. Morever facebook's core competency is building connections and informal digital communities - providing a platform for selling and buying is just an extension which it is trying to get into. (more of a "me-too" approach in retail)

2) The article assumes that the more than 2 bn users on FB can be conveniently considered as buyers - Well there's a mass i agree but their purpose of logging on to Facebook is completely different. As Indians we all have travelled in trains - Indian railways carry a sizeable mass across different geographies within India , and sellers (say FMCG companies) do have an opportunity to address this mass in the train , but does the train sales revenue contribute a significant contribution to the turnover ?(to the extent that it surpasses the regular revenue streams ?) . All users are not buyers - a few behavioural tweaks here and there can be tapped for additional revenue but such transactions are insignificant as compared to main stream buying .

3) The shop feature will help enhance the ad revenue for facebook for sure - but at best it would just act as a marketing medium for the small retailers to reach out to its buyers ; in the short term because of COVID related challenges it can definitely help retailers to cater to the supple vacuum caused in the market , but in the long run , i believe the one's having the core competencies on retail would be the winner

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