Twitter Inc (TWTR) and Facebook Inc (FB) Foray into the ‘Buy’ Zone

The Street has been predicting the foray of Internet giants like Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) into e-commerce for a long time but now it seems the prediction has come out to be accurate. Both social networking behemoths are toying with the idea of tapping the $304 billion global e-commerce market by using the sheer strength of their multi-million user base, albeit with a different approach, altogether.

top smartphone apps employers don't allow their staff to use

While Twitter Inc (NYSE:TWTR) gave a glimpse to its users and marketers of how e-retailing will work in the “tweet world” by launching the ‘buy button’ in the tweets of the online retailer Fancy, Facebook Inc (NASDAQ:FB) too made an announcement on 17th of July that it has started to test a new feature to help businesses drive sales through the social networking platform.  Facebook Inc (NASDAQ:FB)’s announcement came with an image of how the ‘buy’ button will look on its platform and describing how it’s users can directly buy the product from the businesses, without leaving the platform. Facebook Inc (NASDAQ:FB) also mentioned that the current test is limited to a few small and medium-sized businesses in the US.

With more and more marketing dollars being pumped into digital advertising, especially from the likes of Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) analysts on the Street expect this to be a win-win situation for both the e-commerce giants and the social networking behemoths. The analysts are quick to point out that Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) are not directly venturing into e-commerce, but are rather working to ‘reduce friction’ between advertisers and consumers by removing one step from the process of purchasing something online.

While Facebook Inc (NASDAQ:FB) definitely has an advantage over Twitter Inc (NYSE:TWTR), when it comes to the number of users and the sheer amount of user data it has, which makes it figure out their preferences accurately. One can never be sure about who will win the social networking e-commerce wars because as history teaches us, Google Inc (NASDAQ:GOOGL) was already a giant before Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) came into existence, still it was never able to taste the social networking success.

Disclosure: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!