Twitter and the initial tests of the “buy” button
This week Twitter started the trial of its latest feature – the “buy button”. In this way the social media giant is making its first steps into e-commerce. The initial stage of the project is just test period. It goes like that – a small percentage of its users in the US will be able to see a buy button which will allow them to make purchases directly from the tweets. The range of test partners is quite wide, it includes musicians, non-profit organizations like Donors Choose, luxury fashion retailer Burberry and home decoration sellers like Home Depot. If the feature is successful more and more of the Tweeter users will start having the button until full implementation.
Of course, offering online shopping is not that easy. One of the big issues that the company faces is developing partnership for efficient payment on the Internet, while protecting the privacy and the credit card details of its users. With regard to that, in July Twitter made the announcement that it is buying the start-up company Card Spring , which connects payment processors and online merchants. Twitter also hired Nathan Hubbard, who was previously the CEO of Ticketmaster, to have a leadership role in the project.
However, Twitter is not the only company which is trying to take advantage of that profitable opportunity. Its main competitor – Facebook is also testing a buy button and trying to move into the mobile and online commerce. Its idea is very similar – advertisers who buy ads on Facebook will be able to see directly through them to the users of the social network. However, the initial tests of this feature did not prove to be successful and some of the initiatives were not continued. Facebook also had plans to stops its members sending each other digital gift cards.
This raises the question whether social media and online shopping will converge. How profitable will that be for both social networks and the merchants? And if users will react to that positively or not?
A short video about it: https://www.youtube.com/watch?v=dEGk5LRumJM