Several start-ups in e-commerce say that Facebook has the capacity to be an e-commerce giant to equal that of, if not succeed, eBay and Amazon.
Facebook, the largest social networking site in the world with currently over 800 million members and expected to reach a billion members by August, just recently released its IPO at $5 billion.
As such, Wall Street is expecting the company to look for more ways to grow profit aside from advertising, which dominates Facebook’s profits at 85 %.
For several e-commerce start-ups, like BeachMint, Oodle and Yardsellr the answer is e-commerce through Facebook. They say it is only natural for Facebook to turn into an e-commerce giant. Friends shop together anyways, and through the social site, friends can shop online.
These e-commerce startups are currently developing shopping apps with the help of huge investors, including Goldman Sachs, Andreessen Horowitz and Accel partners.
Aside from shopping, one should also expect garage sales online. Personalized shopping recommendations will also be a big thing for Facebook e-commerce, especially since it has an unprecedented set of highly personal data from its users, which could analyze what they want to buy in the site.
David Fisch, a Harvard MBA, predicts that Facebook will have a tremendous effort to bring e-commerce to the site, and companies will benefit if they participate in this social effort.