“It’s a matter of time—within the next five or so years—before more business will be done on Facebook than Amazon” Sumeet Jain, Principal, CMEA Capital
“In three to five years, 10 percent to 15 percent of total consumer spending in developed countries may go through sites such as Facebook” Mike Fauscette, Analyst, IDC Consulting
“Anyone who still believes in 2010 that Facebook isn’t going directly drive a massive commerce opportunity for merchants and retailers alike on that platform will find themselves this time next year in 2011 wishing for their own Christmas miracle” Karen Webster, President, pymnts.com.
You get the picture. f-commerce – Facebook-enhanced retail – is the new shiny new object for industry players and investors.
Quick recap – there are three basic types of f-commerce:
- on Facebook (f-stores, Credits)
- on the Web (using Facebook open-graph/social plugins/FB storefronts with web-stores)
- in-store (using Facebook open-graph/social plugins/Deals for ‘bricks and mortar’ retail)
But beyond the shine, spin and hyperbole – is there any early data to back up the excitement? We’ve compiled a list of statistics related to f-commerce (this page will be an evolving resource, we’ll add more data as we receive it (there’s some interesting new data from Adgregate/WebTrends and Eventbrite we’re digesting and will add – please send any facts, figures findings for inclusion).
Of course, the ‘lies, damn lies and statistics’ caveat applies here – data is tentative and premature, and often originating from sources with vested interests. So treat with caution. But here’s the case for f-commerce – by the numbers:
1. f-commerce is already a viable retail platform
- Top 3: The top 3 brands on Facebook (by fans) all sell directly on Facebook – Coca-Cola (24m), Starbucks (20m) and Disney (19m)
- 2-4%: f-store conversion rates – on a par with web-stores (avg. 3.4%, according to Forrester/Shop.org)
- $650,000,000: The drop in Netflix share value when Warner opened up a Facebook movie rental (streaming) service in 2011
- 1000: Number of diapers P&G sold on its f-store in under an hour
- 50,000: Number of retailers who have opened an f-store with Payvment
- 6 hours: Time it took for the Rachel Roy Facebook jewelry store to sell out
- 3rd highest: daily sales made by Rachel Roy, the day it opened it’s pop-up f-store
- 1m+: Starbucks customers using their e-commerce-enabled Facebook CRM loyalty program
- 1300: Number of products added every week to the ASOS f-store
- 20%: Proportion of black Friday sales transactions on Facebook for e-tailer Kembrel
- 7-10%: Increased Average Order Value for Facebook transactions (vs. web-store) for Kembrel
- 5000+: customers using Walmart’s group-buy Facebook app on the day of its launch
- $34: Amount paid for the first transaction ever to take place in Facebook at 11.50 am EST on July 8, 2009 for bouquet of flowers ‘A Slice of Life’ on the f-store of U.S. florist 1-800 flowers
2. Facebook drives E-Commerce traffic
- 6.5%: click-through rates on Facebook walls are 6.5%
- 67% of retailers plan to use Facebook to drive traffic to their e-commerce sites
- 25%; proportion of users who post links to other companies, products or services
- 20%: the proportion of e-commerce sales from Facebook (for Wetseal)
3. Facebook customers are good customers
- 1.5x: Facebook users spend 1.5x more online that other Internet users
4. Facebook is where your customers are
- 1 in 11: humans that are on Facebook (642 613 700) [Q2 2011]
- 40%: The drop in Coca-Cola’s website traffic in the past year, but Coke’s Facebook page is up and is now the world’s most popular Facebook brand page (22m)
- 7.9: In 2010, Facebook grew by 7.9 users/second
- 1/3: Proportion of time spend online on Facebook by Facebook users
- 50%: proportion of users who log on to Facebook in any given day
- 700 billion: Minutes spent on Facebook every month
- 80: Average community pages, groups and events to which a Facebook user is connected
- Bigger than Google: In August 2010, U.S. Internet users spent 41.1 billion minutes on Facebook, surpassing Google Inc.’s 39.8 billion minutes for the first time
- Nine in Ten: Proportion of US social network users who use Facebook
- 57.1%: Proportion of Internet US users using Facebook
5. Facebook drives word of mouth sales
- 75%: Percentage of Facebook users who have “liked” a brand
- $2.52: what a Facebook share generates for ticketing site Eventbrite
- 11: Visits generated by a Facebook share for ticketing site Eventbrite
- 30bn+: pieces of content shared online every month by Facebook users (web links, news stories, blog posts, notes, photo albums, etc.)
- 90: Average pieces of content created by a Facebook user each month
- 130: Average number of Facebook friends of a user (who receive their word of mouth recommendations)
- $3.60: the media value generated by the average Facebook fan is $3.60/year
6. Facebook drives loyalty sales
- 117%: the additional amount a fan will spend on a brand compared to a non-fan
- 17%: the proportion of Facebook users who say simply having the ability to ‘Like’ a brand makes them more likely to buy
- 51%: the increase in likelihood a customer will purchase, after clicking the ‘like’ button
- 41%: the increase in likelihood a customer that a customer will recommend if they have liked the brand
- 28%: the increase in the likelihood that customers who ‘like’ a brand will repurchase
- 40%: Proportion who ‘Like’ businesses in order to receive special discounts and promotions
- 30% to 200%: increase in site registrations for sites using Facebook sign on
- 15% to 100%: Increase in the number of reviews and other user-generated content generated when using Facebook social sign-on
7. Industry adoption of f-commerce is accelerating
- 76%: the percentage of retailers who plan to use Facebook for ‘social commerce’ initiatives
- 50%+: the proportion of the global top 100 websites have integrated with Facebook using it’s social plugins
- 50,000+: Number of websites that integrated Facebook social plugins (incl. ‘Like’) in the week they launched
- 2.5 million+: websites have now integrated with Facebook
- 10,000: number of new websites integrate with Facebook every day (with social plugins) (since April 2010)
- 2m+: Number of sites that have integrated Facebook social plugins
- 7 out of 10: the proportion of digital marketers who have implemented or planning to implement Facebook Like feature
8. f-commerce is future-proof retail
- 200+ million: Facebook users accessing the utility through their mobile devices
- 2x: People using Facebook on mobile devices are twice as active on Facebook than non-mobile users
- 94%: Proportion of phone users who will communicate on their handsets via social networks
- 50%: Proportion of mobile internet traffic accounted for by Facebook and other social networking tools
- 70%: the proportion of Facebook users who engage with Facebook applications
- 550,000: the number of active applications currently on Facebook Platform
- 44%: the proportion of retailers who plan to use the Facebook application in place of microsites for product launches and promotions
Tune in tomorrow for a list of notable f-commerce examples.