Amazon Tries to Induce E-Commerce Sales Through Social Media

Amazon LogoAmazon.com is one of the largest E-commerce sites on the web today, but after being subjected to an economical recession, it had to try new tactics to encourage online sales from consumers who are currently very skeptical about spending money. In order to promote “Word of Mouth” sales and give their customers more confidence to complete their purchases, while also giving their individual vendors the ability to improve their customer referral rates, Amazon is now giving users the ability to share their purchases on Facebook along with recommendations, gift ideas and wish lists through social media. The feature will even recommend items for you based on purchases that your friends on Facebook have recently made and your similar interests.

Why?

The idea behind this feature is to capitalize on the power that customer referrals has on consumers. When potential customers see that their friends are purchasing specific products, and that they are satisfied with their purchases, they are more likely to complete those purchases as well. This type of “consumer persuasion” could be just what Amazon needs to increase sales in the otherwise shallow market that E-commerce sites have suffered through since 2008. Social media has failed to really induce E-commerce sales prior to this feature’s release, but Amazon is hoping that this integration with Facebook will make social media an effective supplement to online sales.

Facebook Ads

Another big benefit that will be a result of this merger is that Facebook will be able to fine-tune its targeted ads so that they will be more relevant than they were before. This will actually benefit all of the businesses that purchase targeted advertisements on Facebook, because they will experience more prequalified click throughs and conversions because the users that will be redirected to their sites will be more interested in what they have to offer. Focusing the precision of targeted ads has always been one of Facebook’s priorities, because the more accurate the ads are, the more valuable they are to businesses. This directive started when Facebook included the “Like” feature for businesses and will continue to gain momentum as Facebook finds new ways for users to prequalify themselves.

Facebook basically has the keys to expand the potential of social media’s influence on E-Commerce because not only is Facebook one of the largest social media networks on the web, it is one of the largest sites on the web also. It has the power to change the impact social media has on E-Commerce, because as of now, it has the influence to change the entire web in general. This move could be proof of that if it is successful.

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