Meet a few would-be powers of Facebook commerce

SAN FRANCISCO Thu Apr 5, 2012 5:58pm IST

A woman browses the Internet at a cyber cafe in Putrajaya June 16, 2011. REUTERS/Bazuki Muhammad/Files

A woman browses the Internet at a cyber cafe in Putrajaya June 16, 2011.

Credit: Reuters/Bazuki Muhammad/Files

Stocks

   

SAN FRANCISCO (Reuters) - Conventional wisdom says there is no F (as in Facebook) in e-commerce.

But some enterprising firms -- small-time merchants who would have just signed up with eBay Inc a few years ago -- are now enjoying early success on the world's largest social network.

These e-commerce startups, some backed by major financiers, are betting Facebook can become an e-commerce power to rival Amazon.com Inc and eBay. BeachMint, Yardsellr, Oodle and Fab.com are coming up with novel ways to persuade Facebook users to not just connect with friends on the social network, but to shop as well.

ManGlaze sells nail polish for men online and gets about half its sales from a Facebook store set up by Payvment, a startup that says it is launching about 1,500 Facebook stores a week.

ManGlaze started as an experiment to raise beer money, according to Marc Paez, one of the founders. But when he lost his job, he plowed his severance into the business.

Paez would not disclose how much he is making, but said the income from ManGlaze has replaced his old salary.

Adam Matar of RA Optics, which sells snowboarding goggles and other eyewear, started selling on Facebook last year and said he was moving about $1,000 worth of product every hour this winter.

College Hautees, which sells university apparel to women, launched in August and initially only sold through a Facebook store set up by Payvment. Owner Tamina Madsen set up her own website in December, but said about 75 percent of sales still happen on the Facebook store.

Success depends on two factors: the amount of effort store owners put into maintaining an active presence on Facebook and the type of product being sold.

Sports, fashion and beauty products do better because customers are often more willing to share what they just bought, or what they are thinking of buying, with peers.

"Some store owners have hardly any sales, others generate now up to 30 to 40 percent of their sales through Facebook," said Laura Valverde of Beetailer, which runs more than 3,500 Facebook stores for sellers.

(Reporting By Alistair Barr; Editing by Phil Berlowitz)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

OBAMA'S VISIT

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage