If I were Facebook I'd want to control the entire process. I imagine for the majority of their users it will be easier to simply get a credit card on file and use that moving forward.
WRT get a credit card on file. Why would Facebook outsource storing payment information?
Have any of the big players (Google, Apple, Facebook, Amazon, etc) allowed you to pay with a third party payment provider?
Facebook and YouTube have both tried product sales with insane revenue splits and seem to have failed so far. Not sure why they are trying this again.
My guess is that most don't have 30% of gross spare when they could just link out. It's one level of egregious for Apple to do it but at least they have the stored credit cards to throw around, not really sure what Facebook is bringing to the table here.
This is great news! Two Tap (YC W14) offers a buy button for any app and we're regularly seeing multipliers on conversion rate on mobile when streamlining the checkout.
Next evolution: use their recognition algorithms to identify shirts, jewelry,... in your friends photos and have "buy now" buttons all over the picture.
I actually think that could be a decent way to balance the fact that people don't want to see ads with the fact that FB has to have ads in order to make money. As long as they did it in a way that didn't disrupt the user experience too much
Shopping experience on amazon seems much better but to counter-argue: 1) incremental sales are gold and 2) I'd say getting a sale actually provides a huge opportunity to cross-sell/engage.
I'm guessing this wont do well for mainstream, amazon-style commerce but could find some niches like impulse buys, donations, tickets, etc.
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[ 3.5 ms ] story [ 57.7 ms ] threadWRT get a credit card on file. Why would Facebook outsource storing payment information?
Have any of the big players (Google, Apple, Facebook, Amazon, etc) allowed you to pay with a third party payment provider?
Because others might be better at it.
You pay to get distribution for your ad and if it converts you pay 30% of the total purchase price on top of that.
My guess is that most don't have 30% of gross spare when they could just link out. It's one level of egregious for Apple to do it but at least they have the stored credit cards to throw around, not really sure what Facebook is bringing to the table here.
Couple reasons:
First, I'm surprised that anyone would purchase with so little information. A photo/price doesn't seem like enough room to make the sale.
Second, the merchant loses the chance to upsell and/or retarget the customer.
What's the counterargument? That the conversion rate is improved enough to offset these downsides?
I'm guessing this wont do well for mainstream, amazon-style commerce but could find some niches like impulse buys, donations, tickets, etc.
They have yet to do so, and Facebook ads remain lucrative.