The new “buy” button, already introduced on Twitter and Facebook and soon to appear on Google, looks set to change the face of ecommerce, according to the Young Entrepreneur Council (YEC).
The YEC, an invitation-only organisation consisting of some of the world’s most promising young business leaders, highlighted ten ways that the new feature is likely to influence ecommerce in a feature for the website www.business2community.com. These included:
- It will lead to more conversions, by eliminating some of the intermediate steps between first seeing an advert for a product or service.
- Better targeting of product recommendations through social networking. People will be able to see a product mentioned on their social media feed and buy it instantly.
- It will make it easier for brands to hold flash sales or other promotions targeted at their followers using the “Call to Action” feature on Facebook. This in turn might lead to more people following them in order to take advantage of such promotions.
- A possible shift in focus from brand awareness to lead generation. Dave Nevogt, of time management software company Hubstaff, calls this trend “potentially dangerous”, saying that it could lead to brands diverting attention away from their websites. Conversely, however, Andrew Schrage of the Money Crashers personal finance site thinks that brand loyalty will actually become more important to companies. Schrage thinks that unless companies develop more robust rewards programs, they will leak customers due to fiercer competition.
- It will make Facebook, Twitter and Google more like Amazon, and increase their revenues even further, as people buy directly through them, rather than going via dedicated ecommerce platforms.
- Marketers will have more detailed information about returns on investment in advertising by being able to track exactly how many people click the buy button on a particular ad or promoted post.