Fortunately, Facebook made some other smart strategic moves like Facebook for Mobile, allowing it to capture the increased ad revenue that is shifting to that platform.
Yet the company is still chasing that aspiration of keeping transactions between buyers and sellers within its digital walls. Facebook is now looking to its Messenger platform, which is being built with the aim of enabling contextual commerce, to provide the basis for that strategy. At its F8 developer conference in April, Facebook announced the beta version of Messenger.
Developers can now build chat bots for the platform, which Facebook envisions can be used for a variety of applications: automated subscription content like weather and traffic updates, customized communications like receipts, live automated messages, and online transactions. The latter application is becoming known in the industry as contextual commerce: the ability for a customer to make a purchase within their current online environment, rather than having to go to an external website, search for the item, place it in the shopping cart, and fill out payment information.
The reason for this move? What the company potentially gets in return is threefold:. WeChat now has nearly million monthly average users in China, and also offers services such as taxi hire and peer-to-peer payments; both applications that Facebook has also launched on Messenger in the last year.
However, the Chinese e-commerce market is driven by its own unique dynamics. For one, e-commerce growth in that country has coincided with smart mobile device growth, and most e-commerce transactions there are now on mobile devices. This means Chinese consumers do not have the historical habit of buying on desktops on web-based stores as those in the U.
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