Facebook is taking further steps into e-commerce with the announcement of the new "Facebook Gifts" service, which allows users to purchase and send real gifts to friends.
The new service is initially being implemented in the US, and Facebook says it will be rolled out gradually to the rest of its user base. Facebook has previously offered a virtual gift exchange through which users could send virtual gifts that were just digital images of various trinkets. Facebook closed the virtual gift service in 2010.
"Every day, millions of people share special moments with their friends on Facebook by saying 'happy birthday', 'congratulations', or simply 'I'm thinking of you'. Now there is another way to celebrate those moments," says Facebook.
Users will now be able to send gifts directly from birthday reminders or from friends' timelines. After choosing a gift, the user can add a card and then send, while also posting a notification of the gift to a friend's timeline, or choose to send it privately.
"Your friend can then unwrap a preview of the gift and it will show up on their doorstep a few days later," says Facebook. "You can pay right away or add your payment details later. Your friend provides their address."
The recipient of the gift can specify the colour, size or flavour of the gift they want, or exchange it for something of equal value. The gifts can be selected from over 100 Facebook Gifts vendors - gifts range from Starbucks gift cards to stuffed toys and pastries.
Starting small
The new feature marks another step by Facebook to diversify its revenue stream and better monetise the platform. According to Reuters, Facebook still relies heavily on display advertising, with 80% of its second-quarter revenue coming from ads and 15% from Zynga games.
Facebook will reportedly take a cut of each gift transaction - with the amount varying depending on the individual deals struck with each vendor partner.
By getting its 950 million users accustomed to making small purchases as part of their social routine, it is expected that Facebook will be able to grow as an e-commerce platform.
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