With more than a billion users sharing their e-mail addresses, phone numbers and pictures, Facebook now wants them to share a little bit more : their real residential addresses and credit card numbers. Facebook recently launched a new service called gifts for the people in the United States (for now) to buy presents for their loved ones and friends in facebook.
Items in the facebook gift store varies from Dean and DeLuca spices, BabyGap pajamas and Hulu Plus subscriptions. Earlier this week facebook added iTunes gift cards to its gift store. This aggressive money making push comes after facebook’s dismal stock market debut. This is the same reason why facebook has stepped up mobile advertising and customizing facebook ads based on the users web browsing outside facebook.
All these efforts have had a profound effect in Wall Street. Analysts have now issued bullish projects to the Facebook stock, and the company is now almost 50% up from its lowest point at 26.15 $ per share. There is still a long way to touch the initial offering price of 38 dollars per share.
Facebook has rented a warehouse in South Dakota to power the Facebook gifts store, and has also developed its own system to keep track of inventories and shipping. Although Facebook wouldn’t reveal how much it earns through each sales, it is believed to be somewhere around 15% cut of sales as Amazon.com charges the same for a similar arrangement.
The people in Facebook are praying that this move catches on, as it would give them a toehold in the $ 250 billion e-commerce market. Also it would help the company accumulate a new stream of personal data which will come as a great help in targeted advertisements.
“The hard part of facebook was aggregating billion users, Now it’s more about how to monetize those users without scaring them away” said a top analyst at Robert W.Baird. Credit card information is already collected from users who play facebook games, but they are of limited constituency. A wider audience may be persuaded to share their credit card information if they are reminded about their friend’s wedding or birthday. The gifts service was introduced in September following the acquisition of Karma, a mobile application. On the eve of holiday shopping season, the service was expanded earlier in November.



