JC Penney, Gamestop and GAP are among a group of companies who are shutting down their stores on Facebook, as they find that they’re not generating the revenue that justifies the investment in time and money. Gamestop opened their store on Facebook to generate sales among their 3.5 million ‘fans’ but is now shutting down, after just 6 months.
Given that very little sales were being processed through this channel, it would suggest this is the right business decision. Many commentators are also deeming F-commerce as a complete flop, due to the lack of sales and are claiming that Facebook “isn’t a place to sell”.
Sure, as consumers we are adapting to new ways of doing business online quickly, as we keep up with the change of pace in technologies that facilitate this, but shutting down a store on Facebook after six months seems a bit extreme. People seem to forget that Facebook is a very young company and that both brands and consumers are still figuring out the best way to make it work for them and what they are/aren’t comfortable doing on there.
At the moment people don’t seem ready for F-commerce. There are trust and privacy issues that are preventing people breaking down the barrier to buying products through the social networking site. So at the moment I really think that Facebook won’t ever make it as an e-commerce platform, instead it will be an endorser, getting people to talk about and share rather than buy.