Facebook starts selling retail gift cards on website

SAN FRANCISCO Fri Feb 1, 2013 12:15am IST

A women works with her computer which displays Facebook logos on the screen in Bordeaux, Southwestern France, January 30, 2013. REUTERS/Regis Duvignau

A women works with her computer which displays Facebook logos on the screen in Bordeaux, Southwestern France, January 30, 2013.

Credit: Reuters/Regis Duvignau

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Facebook Inc(FB.O) introduced gift cards on Thursday that consumers can use at Target Corp (TGT.N) and a handful of other businesses in the social network's latest move into the retail market.

Consumers in the United States can buy the cards for their Facebook friends and choose from four different businesses: Target, LVMH Moet Hennessy Louis Vitton SA's Sephora, Jamba Inc's (JMBA.O) Jamba Juice and Darden Restaurants Inc's(DRI.N) Olive Garden.

A card can hold multiple gift balances, each dedicated to a specific retailer, Facebook said.

The world's No. 1 social network, with more than one billion users, Facebook is gradually offering more retail services, though it relies on advertising for the bulk of its revenue.

Last year, it launched a feature that allows users to send retail goods, such as sunglasses and pastries, to their friends on the social network.

Facebook Finance Chief David Ebersman tempered expectations about the new gifts business in its quarterly earnings conference call with analysts on Wednesday.

While Facebook believes online commerce has "long-term potential," the current revenue from such efforts is very small and will remain so throughout the year, said Ebersman.

Shares of Facebook fell 13 cents at $31.10 in mid-day trading.

(Reporting by Alexei Oreskovic; Editing by Jeffrey Benkoe)

FILED UNDER:

Reuters Showcase

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

RBI Rate Cut

RBI Rate Cut

RBI surprises with post-budget rate cut.  Full Article 

Documentary Banned

Documentary Banned

Documentary on 2012 Delhi gang rape banned in India.  Full Article 

Axed By Censor

Axed By Censor

Fifty Shades of Grey’s future gets greyer in India  Full Article 

Bollywood Focus

Bollywood Focus

Franchise Man swoops in to save Bollywood.  Full Article 

Snowden seeks Return

Snowden seeks Return

Fugitive ex-NSA contractor Snowden seeks to come home - lawyer.  Full Article 

Carry Your Litter

Carry Your Litter

Nepal tells Mount Everest litterbugs to take out the trash.  Full Article 

Reuters Interview

Reuters Interview

Budget lacks wow, but good enough: Jim O’Neill.  Full Article 

Defence Budget

Defence Budget

China defence budget rise to defy slowing 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