Why Facebook and Google will they convert to e-commerce?



Both platforms are working on new options for their users to purchase products directly on their pages.

In one day apart, Google and Facebook come to make a foray noticed in the Web merchant. The search engine on Wednesday unveiled a new feature allowing users to purchase products directly from their mobile search results, without having to go to another site. Facebook, meanwhile, is testing a new type of page for businesses to also purchase products. He had already experimented a buy button in 2014 and officially launched money transfers on its Messenger messaging application at the beginning of the year.

These two consecutive ads are nothing coincidental. Online platforms are knowledgeable – and longstanding – the cravings of Internet shopping. The economic business model is based on Google sponsored links paid auctioned by companies, and on which it takes a commission. This system worked perfectly on PC, mobile has its limits. Users tend to go through the applications of commercial sites to complete their purchases or to prepare them, as they are more adapted to smartphones and tablets.

By hosting the products itself, Google is betting that he can increase the number of stores that choose to go through its new direct sales system. The experiment is in fact closer to that of an application. Shopping websites could then choose to bet more to be included in advertising space from Google, whose value may increase again. Until then, the changeover to the mobile users has instead resulted in a decrease in the average cost of advertisements, which further declined by 13% at the beginning of the year compared to early 2014 .

The situation is less tense for Facebook. The e-commerce remains a good way to diversify its revenue. Other social networks like Twitter or Pinterest, have made the same calculation and testing also purchase buttons or other means to make purchases within them.

Beyond the financial interest, web companies view the online business an added incentive to keep their users within their scope. A user who clicks a link to the outside of their platform is a person who will see their advertisements shorter, and therefore earns them less money. To encourage their users to stay on their pages, Google and Facebook are trying to recover a maximum content or external features and integrate them into their site.

This logic of disintermediation is already affecting many sectors outside of e-commerce. This is for example the case of the media, whose articles are operated by both Google (through Google News) and Facebook, which is hosting it for some months of articles on its pages. Google also has many comparators for hotels, flights or shopping, which allow to make a reservation in just three clicks. Gradually, the Web companies become great platforms, able to meet all the desires and interests of the user.