E-commerce News

As we’ve covered more than a few times here at Junkie recently, there is an emerging trend combining e-commerce with the world of social networking.  Retailers are recognizing the potential that the enormous audiences of Facebook, Twitter, etc. hold and they’re looking for ways to incorporate them into their business models.

One of the first such tools offered to retailers to tap into one of those large audiences was the Facebook Merchant Store application from comparison shopping site Sortprice.com.  We’ve linked to the Merchant Store app a few times in other blogs here because it’s really a great tool and one that we think every online retailer should explore.   Recently, we interviewed Doron Simovitch, Sortprice’s CEO and co-founder, to learn a little more about the application, how it came about, and where it fits in the future of e-commerce and social networking integration.

ECJ: What prompted you to build the application and who can take advantage of it?

Simovitch:  We’re always brainstorming and testing new technology as part of our commitment to both merchants and shoppers, and this idea came about as Facebook began growing in popularity. No one else was offering retailers a chance to open a storefront right on their Facebook fan pages and we felt it would be an extremely valuable addition to any merchant’s e-commerce efforts.  Sortprice was already running an app for shoppers so this was the logical progression.

We offer the application as a free benefit to any paying Sortprice merchant.

ECJ: How does it work?  And what differentiates the app from others like it?

Simovitch:  The product listings in the merchant’s Facebook store correspond to their product listings on our actual site, which makes for a pretty easy set-up.  The merchant decides which of their products they want included in their Facebook store; they can add them all or target just a few.  We build the store initially for them with a template design and give them guidance on how to maintain it.  Facebook users will find the store under a special tab on the merchant’s fan page and they can literally shop right there in the store, with all the product listings linking back to the merchant’s own checkout pages.

There aren’t many other applications like this one out there but what really makes ours stand out from the handful of competitors is how flexible it is for the merchant.  As I said, they control the quantity of products in the store itself but we also give them full control over customizing it as they see fit, including the color scheme, logos and slogan placements, and adding their own product category images. Overall it’s a very interactive tool as well because it lets the shoppers build lists of items they like and communicate with others about their wish lists.

ECJ: What has the response been from retailers?

Simovitch:  It’s been overwhelming to say the least.  We’ve had many retailers rave not only about how easy it was to get started with the application, but also how quickly they started seeing tangible results in terms of traffic and conversion rates.  We give them all resource materials and suggestions on promoting and marketing their Facebook stores once we get them up and running and from all indications, the tips are useful because most of our merchants are building successful and interactive shopping communities on their Facebook pages.

ECJ: In your opinion, what are the benefits of retailers expanding to social networking?

Simovitch:  Quite simply, expanding now isn’t an option. It’s a necessity.  So many retailers are branching out and finding new ways to use social networking that if you’re not keeping up, you’re putting your business in peril. Not to mention that if you look at Facebook alone, that’s 350 million users that you’re ignoring if you’re not involved with the site in some way or another.

You never know what the ‘next big thing’ is going to be either so we always recommend that retailers stay on top of the tech and social networking news and keep track of new sites/tools that are coming out. If they’re free or cost-effective, you should explore using them.