Report: Facebook Storefronts Failing Due to Lack of Consumer Interest
Bloombergreports that several retailers that set up shops on Facebook have ended up closing them because Facebook users were not making enough purchases at the stores. Gamestop, J.C. Penney, Nordstrom, Banana Republic and Old Navy all tried out Facebook stores but ended up closing them.
Facebook's ecommerce stores have been dubbed F-commerce. Wade Gerten's 8thBridge company opened up stores for several merchants including 1-800-Flowers, Diana von Furstenberg and Seven for all Mankind. The stores ended up being scaled back or shuttered. Gerten told Bloomberg he gives F-commerce an "'F.'"
These storefront failures are a big indicator that Facebook is going to have trouble converting its massive user base into big spenders. Second Life had similar problems several years ago when it encouraged retailers to open virtual shops. People just didn't see Second Life a destination for shopping. Most Facebook users are primarily there because they want to maintain contact with friends and family and share news and videos of interest.
