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Facebook (FB) launches Gifts, a feature that allows users to (you guessed it) buy gifts for...

Facebook (FB) launches Gifts, a feature that allows users to (you guessed it) buy gifts for friends, with Facebook taking a cut along the way. 100 retail partners are on board, the largest of which is Starbucks. Gifts, which leverages Facebook's payments platform and the $80M Karma acquisition, could prove the start of a larger push by the company to address an e-commerce opportunity that many think is huge. Shares +1.2% AH.
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Comments (11)
  • dieuwer
    , contributor
    Comments (2694) | Send Message
     
    Won't work. User will only buy gifts worth $100 if they cost $100. And not a penny more.
    27 Sep 2012, 06:48 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1052) | Send Message
     
    I got the impression Facebook is taking a cut from the retailer's end. The retailer would treat it like an affiliate fee.
    27 Sep 2012, 06:56 PM Reply Like
  • coolshaps
    , contributor
    Comments (47) | Send Message
     
    Sounds like a Groupon. Great idea, plus better reach than Groupon. I'm looking for a higher ad rate going forward and greater revenue.

     

    They're pushing hard in monetization and advertisements. I think they have something to prove. They may have greater revenue and greater cap ex but better guidance for the holiday season as well as trends in their new systems of advertising.
    27 Sep 2012, 07:37 PM Reply Like
  • mvhcat
    , contributor
    Comments (2) | Send Message
     
    So Facebook will take a part of any discount the retailer might provide to FB users as the intermediary in the sale. As long as the purchase provides a deal or a convenience for the user they will sell a lot. If the service is a premium they will sell some but not as much.
    27 Sep 2012, 07:02 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    This is not new; credit card companies and retailers have had these programs for years, reaching already to mobile. Huge oppty?
    27 Sep 2012, 07:15 PM Reply Like
  • wallstjoe
    , contributor
    Comments (26) | Send Message
     
    Facebook will be toast!
    27 Sep 2012, 08:32 PM Reply Like
  • Danial Magid
    , contributor
    Comments (12) | Send Message
     
    With the struggle that Amazon is facing, this is moot. I can't imagine FB profiting more than $5M per year. Of course, this could expand to other countries, and help some retailers, but FB's margin will remain very low.
    27 Sep 2012, 08:35 PM Reply Like
  • TrojanRay
    , contributor
    Comments (7) | Send Message
     
    Didn't they already have this? I remember buying an "e-rose" once for my then college girlfriend for 99 cents. Nothing new here, really. Starting to feel FB is really grasping at straws and any new monetization procedures won't offset the gradual decline in their main revenue driver (PC ads).
    27 Sep 2012, 09:03 PM Reply Like
  • chopchop0
    , contributor
    Comments (4137) | Send Message
     
    Better than the lame virtual ones from several years ago lol.
    27 Sep 2012, 10:24 PM Reply Like
  • User 153538
    , contributor
    Comment (1) | Send Message
     
    Sounds just like giftiki
    28 Sep 2012, 12:21 AM Reply Like
  • thor34
    , contributor
    Comments (102) | Send Message
     
    FB is like those flower girls that come into bars in the SF bay area. You are there to hang out with friends,drink, and try to pick up girls, and just when you start to talk to someone, a F lowergirl comes up and ask you to buy a flower.

     

    Look, im in a bar, im trying to get laid, go away. If I bought a flower for every girl I tried to pick up, the bar would look like a mortuary, and on the tombstone it would read "here lies dead equity, killed by a BILLION shares on insider stock that was unloaded in Q4 2012."
    1 Oct 2012, 03:59 PM Reply Like
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