Buy Button of Facebook

The time has come again! And this time it’s the online merchants who gets the biggest gift from Facebook. Facebook has just announced its new feature ‘BUY’ button that will allow social media users buy products directly from the news feed. For all you online merchants, here is your chance to convert Facebook users into spontaneous online shoppers. This is indeed a good idea to combine online retail with social media. However, this button currently available on desktop, mobile ads and page post is limited to a few small and midsized businesses.

The News in town!

Facebook is actually shutting down its Gifts to focus on the ‘BUY’ button and business platform. ‘Gifts’ was a cutesy online shop within Facebook to buy chocolates, teddy bears, wine, and gift cards for friends. What was unique was that you didn’t need to know a friend’s address to send him physical gift. Instead, Facebook would post a ‘wrapped’ gift to your friend’s wall where they could open, and see personal message and be asked for their shipping address.

However, the Gifting concept didn’t naturally fit into Facebook, and many of the Gifts were Tacky junk, so people did not want to spend money sending them to the friends. Moreover, Facebook faced difficulties solving distance and localization problems to make Gifts work internationally. However, Facebook did not look back. Soon it started focusing on ‘Buy’ button to help business sell more on this powerful platform without leaving it. Users can click through to a merchant’s website, can enter their credit card information required to purchase a product directly into Facebook. Facebook want to smooth the checkout flow, and show ads that can lead to purchases.

The ‘Buy’ button

Facebook businesses now can publish Page Posts and ads which show them a buy button that allows people purchase products they like from Facebook. They do not have to switch back to the merchant’s website to complete the checkout flow in-line. This naturally saves both the website navigation and complicated billing information entry steps off the conversion funnel.

This is undoubtedly a big and exciting step for Facebook.

What’s the excitement about?

Brands can simply insert a ‘buy’ button into their sponsored posts that appear in News Feed and allow people to purchase whatever is offered. The best part is, they no longer have to leave Facebook only by liking the post – they can ‘buy’ what they like. Facebook is helping advertisers make direct promotion of their brands to people. This actually can become a hot cake for advertisers and retailers. It is through the buy button, users can complete a purchase transaction while continuing with Facebook.

Among the ‘call to action buttons’, the one closest is the BUY NOW, prompting users to finish a transaction on the Facebook. Even if the shopper does not complete the transaction after clicking buy button, at least the advertisers are aware that the user is interested in making a purchase of a particular product, and accordingly, they can target them with ads for that specific item. Buy button is actually not forcing users to leave Facebook for another site in order to check out. All you have to do is- click on ‘Buy’, click again to confirm and the product is on its way to your door.

Don’t you think Facebook is becoming more firmly established as a strong player in direct response advertising? Certainly it has. People actually want to shop from inside a stream of items their friends have recommended. This is the power of Facebook advertising especially for online venture.

But… Are people comfortable sharing their credit card details on social media platform?

Facebook announced that it has built its feature with privacy in mind and has made the payment experience secured. According to Facebook, none of the credit card or debit card information people share with Facebook while making a purchase will be shared with other advertisers or anyone else. Moreover, people can even select the option of whether they can save payment information for future purchase.

Kevin Bobowski, Vice President of marketing at Facebook, feels that this buy button shows how Facebook has gradually evolved as an ad platform. He also added that users are gaining adequate trust in the site to proceed with their purchases directly through Facebook. He observed that consumers, nowadays are much more comfortable with purchasing online. They are eventually becoming confident in making online transactions.

How does it benefit the online marketers?

Determines Facebook’s return on investment

Till now it is difficult to measure the direct impact of Facebook marketing on revenue. In addition, there are several methods for proving social media ROI. However, marketers who run click-to-buy ad campaigns on Facebook will now have tangible results to bring to their marketing officers, thereby resulting in bigger social media budget.

It is easy to convert Facebook users into shoppers

It’s been several years now that marketers want to trap the Facebook’s huge engaged audiences in order to drive more revenue. With Facebook’s base becoming increasingly mobile, it’s more important to create easy conversion paths. However, with this new buy button, it eliminates the need to pull out the Facebook users from the site to make any purchase transactions. The process enables higher conversion rate through impulsive purchases.

Shopping has become more social

Around 92 percent of consumers says that they trust word-of mouth more than advertisements. Identifying this trend, most of the retailers and brands have started in investing in marketing strategies that encourage factors like user-generated content including ratings, reviews, or user photos. Adding business products to a social network site can make conversations about brands and its products feel natural and predictable.

No wonder social media account really matters!

BUY button is still in Beta… I am eagerly waiting to see how this new feature is going to change the entire buying mindset of people and becomes a win-win practice for marketers.

Image Courtesy: www.agilone.com

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