At first glance, the launch of Facebook Gifts may not seem to be the most exciting story to come out of Facebook recently, but it could be very significant for the future of the network. In fact, Facebook shares immediately jumped 6% after the company launched the initiative.
We have seen Facebook gifts before, but the previous incarnation involved sending worthless digital teddy bears and rubber ducks. Unsurprisingly it didn’t take off. This time, however, hundreds of physical goods are up for sale and can be sent either from birthday reminders or friends’ timelines. Your friend will be notified immediately and you don’t even need to know their address. As with Facebook ads, gift suggestions will no doubt be targeted depending on your interests and profile information.
This is likely to give Facebook a nice revenue boost, but one of the big advantages is that they will collect thousands more user addresses and credit card details. Once a user does this, it will make it much easier for them to spend more money on Facebook in the future. Facebook could finally be cracking F-commerce?