Facebook hasn’t really been a player in ecommerce –Facebook Credits, its games-oriented initiative, was shut down in 2012 after three years of experimentation with virtual currencies. But it continues to test the waters — which is not surprising, given its volume and huge edge in social media and native advertising.
Last year, Facebook began to allow consumers to add credit card information to profiles in order to enable ecommerce transactions. Now, Facebook says it is testing a “Buy Button” with “some” SMBs.
During the test, consumers are providing Facebook with credit/debit card info for PayPal-like purchases on a one-time-only basis. Neither the SMB or Facebook ever get to see the info – all payments are being handled by a third party processor. Consumers could then opt to allow Facebook to make the credit/debit card info part of their permanent profile, using the cards for convenience.
If Facebook expands the effort – which Reuters reports is currently free for merchants — the implications could be significant. For starters, Facebook’s enhancement of its anonymous consumer profile would put Facebook on a collision with Amazon and its one-click purchase system. By focusing on the under-served SMB market for ecommerce – and likely offering a blend of virtual and physical goods — Facebook would also be breaking new ground.
Facebook’s Joseph Devoy is discussing a wide range of SMB initiatives at Leading in Local: SMB Digital Marketing Sept. 22-24. You can register here.