Ondango zu Social Shopping und Shopsysteme in Facebook auf dem 20. Twittwoch zu Berlin am 27.04.2011

1. Exploring F-Commerce
April, 2011

2. About me
José Matías del Pino
Founder at Ondango
Industrial Engineer, MBA
Graduate of The Founder Institute
More than 2 years of experience in the
German internet industry as founder (mobile
content) and as Business Development
Manager (monetization of online games).
Previous industry experience in logistics
(Procter & Gamble), marketing (Robert
Bosch) and consulting (The Boston
Consulting Group).
Ondango
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3. Agenda
1. Introducing Ondango
2. The f-Commerce space
3. Lessons learned and best practices
Ondango
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4. Facebook is the new Internet
600 million users
290 million people play games on
Facebook at least once a month
Social Games
5 billion pieces of content are shared
on Facebook each week
Social Sharing
Facebook is the second largest traffic
source for online videos
Social Media
More than 2 billion chat messages are
sent each day
Social Communication
But what about shopping?
Ondango
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5. Introducing Ondango
Shop owners use Disconnected experience
between Facebook Page Limited capability to reach
Facebook as marketing
more people
channel
and shop
Transforming their Users never leave
Viral features to spread
Facebook presence into a Facebook to complete
the word
sales channel
the purchase
Ondango is a shopping solution that helps people and
small shops sell products directly on their Facebook
Pages, by leveraging social interactions.
Ondango
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6. Ondango live demo
Easy navigation
Different product variations
Like button
Image gallery with zoom
Rich HTML support for product description
Flexible payment and shipping methods
Comments with “post on news feed”
Call to action for new shop owners
… and much more:
Localization
Multiple currencies
Optimized checkout flow
Facebook-like user interface
Ondango
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7. Agenda
1. Introducing Ondango
2. The f-Commerce space
3. Lessons learned and best practices
Ondango
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8. The market of e-Commerce in Facebook
N° of shop owners with Facebook Pages
1,500,000
x
Average N° of products sold per shop/year
60
x
Average price of a product
55€
Global market size of f-Commerce:
4.5 Billion €
Ondango
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9. 4 types of f-Commerce
1. Fan Page Full Shop
2. Fan Page Storefront
3. Canvas Apps
4. In-Feed Shops
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10. Fan Page Full Shop
A full-fledged shop that exists completely within a
Facebook Page, i.e. the user never leaves Facebook in
order to complete the purchase.
Examples: Ondango, Payvment
Ondango
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11. Example of Fan Page Full Shop
Payvment:
Ondango
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12. 4 types of f-Commerce
1. Fan Page Full Shop
2. Fan Page Storefront
3. Canvas Apps
4. In-Feed Shops
Ondango
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13. Fan Page Storefront
A shop that exists within a Facebook Page, but when a
users clicks on a product, it is redirected to an online
shop outside of Facebook to complete the purchase.
Examples: Dawanda, ShopTab
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14. Example of Fan Page Storefront
Dawanda:
Ondango
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15. 4 types of f-Commerce
1. Fan Page Full Shop
2. Fan Page Storefront
3. Canvas Apps
4. In-Feed Shops
Ondango
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16. Canvas Apps
A shop that exists as an iFrame within Facebook, but
not on a Facebook Page. The user can generally
complete the purchase within Facebook.
Examples: Milyoni, Shop Igniter
Ondango
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17. Example of a Canvas App
Milyoni:
Ondango
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18. 4 types of f-Commerce
1. Fan Page Full Shop
2. Fan Page Storefront
3. Canvas Apps
4. In-Feed Shops
Ondango
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19. In-Feed Shops
A shop that exists on an embeddable widget that can
be shared through Facebook, and thus it can show up
on a user’s news feed, where she can complete the
purchase.
Example: Sellaround
Ondango
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20. Example of an in-Feed Shop
Sellaround:
Ondango
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21. f-Commerce: Summary
Type
Example
Pros
Cons
Best shopping Limited space to
Fan Page Full Shop
experience within display products
Facebook
Easy to replicate Longer purchase
Fan Page Storefront
existing online shop
funnel, users have
to leave Facebook
More space to Facebook is used
Canvas App
display products
just as a frame for a
normal shop
Products show up Only allows to sell
directly on the one product,
In-Feed Shop
news feed
unusual shopping
experience
Ondango
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22. Agenda
1. Introducing Ondango
2. The f-Commerce space
3. Lessons learned and best practices
Ondango
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23. Lessons learned and best practices
1. Users don’t install apps
2. Tips on NFO (Newsfeed Optimization)
3. Be different
4. What’s in f-Commerce for Facebook?
Ondango
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24. Users don’t install apps
FBML made necessary that the users install a shop’s
app in order to purchase something.
Example: Payvment
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25. Users don’t install apps
Since February 2011, Page Apps can be
developed using iFrame
Advantages:
• No app installation necessary
• Product deep linking
• Better SEO
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26. Users don’t install apps
Ondango switched from FBML to iFrame in April 2011.
Up to 80% of users would drop-out from the purchase funnel
when requested to install our app!
Ondango
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27. Lessons learned and best practices
1. Users don’t install apps
2. Tips on NFO (Newsfeed Optimization)
3. Be different
4. What’s in f-Commerce for Facebook?
Ondango
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28. Tips on NFO
NFO is the f-Commerce Equivalent of SEO
SEO
NFO
What do we want to Show up higher on search Shop up more frequently
achieve?
results
on our fans’ newsfeeds
What do we want to PageRank
EdgeRank
maximize?
How are these formulas Sum of (PR of outbound Weight x Affinity x Time
calculated?
links / # of inbound links) Decay
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29. Tips on NFO
How does Facebook calculate EdgeRank?
Weight x Affinity x Time Decay
Weight defines a hierarchy between different types of content shared on Facebook. Facebook is
said to adapt this hierarchy to their strategic needs.
Right now: Facebook Places Video Update Picture Update Link Update Status Update
Affinity defines how relevant is a certain content for the content viewer. Different variables
determine the affinity, but the two most important are: How much have you interacted with
content from that source before, and how much do your friends interact with content from that
source (Interaction = likes, comments, shares, etc.).
Time Decay lowers the EdgeRank of a piece of content depending on how old it is.
Ondango
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30. Tips on NFO
How can I improve my EdgeRank?
• Post high-weight content more often (e.g. videos and pictures)
• Ask users for feedback or make questions on your status updates (that
generates likes and comments)
• Ask for a large quantity of likes to reveal new content
• Create contest that involve commenting on a picture
• Don’t be spammy (max. 3 posts/day)
• Post content at the right time (status updates sent out in the morning get
more user activity, and Wednesday is the best day of the week)
Ondango
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31. Lessons learned and best practices
1. Users don’t install apps
2. Tips on NFO (Newsfeed Optimization)
3. Be different
4. What’s in f-Commerce for Facebook?
Ondango
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32. Be different
Users expect different things from a Facebook shop
• Facebook-Only products (e.g. pre-official launch)
• One-time-only availability
• Special discounts
• Limited stock
• Other perks, such as free shipping
In our tests, Facebook-only products and free shipping
have proven to increase engagement and conversion.
Ondango
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33. Lessons learned and best practices
1. Users don’t install apps
2. Tips on NFO (Newsfeed Optimization)
3. Be different
4. What’s in f-Commerce for Facebook?
Ondango
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34. What’s in f-Commerce for Facebook?
Facebook will use the same approach as with the
Social Gaming Industry
• When shop owners discover the value of Facebook as a sales channel,
they will spend more on Facebook Ads (which are cheaper for Facebook
Pages than for external sites)
• Facebook Credits won’t be used for real goods (30% commission).
Instead, they’ll be used as promotional tools (buy this and get 5 Credits for
free!)
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35. Thank you!
jm@ondango.com