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  • Retailers Shut Facebook Storefonts Amid Apathy

    Facebook, which this month filed for an initial public offering, has sought to be a top shopping destination for its 845 million members. The stores’ quick failure shows that the Menlo Park, California-based social network doesn’t drive commerce and casts doubt on its value for retailers, said Sucharita Mulpuru, an analyst at Forrester Research in Cambridge, Massachusetts.

    “There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop,” Mulpuru said in a telephone interview. “But it was like trying to sell stuff to people while they’re hanging out with their friends at the bar.”

    A year ago, investors hailed so-called F-commerce as the next big thing, speculating that the company had potential to threaten Amazon.com Inc. (AMZN) and PayPal Inc. Facebook is the most- visited website in the world. Some people thought that persuading visitors to shop would be easy, Mulpuru said.

    David Fisch, Facebook’s director of business development, said in June that the site would be more appealing than competitors because it could replicate the social experience of a brick-and-mortar shopping mall.

    CLiCK TO SHARE LiNK | Posted on February 21, 2012

    Source: bloomberg.com

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