A New Tune for Facebook Gifts
We're continuing to enhance the Facebook Gift Shop so you have more ways to express your appreciation for the people in your life. A couple months ago, we took a first step by testing new types of gifts created by developers, including e-cards …
Context & Ripple Effects
Facebook had already moved gifts toward micropayments in 2008, then tested an expanded shop carrying virtual and physical goods from developers in August 2009. The new developer-created e-cards extend that shift from Facebook-supplied gifts toward a broader merchant catalog.
For the Facebook Gift Shop, the change matters because expression products are becoming a distribution opportunity for outside developers rather than solely a Facebook feature.
First-order effects
- Facebook users gain additional Gift Shop options, including developer-created e-cards, for sending appreciation.
- Developers can place new gift formats in Facebook's shop, giving them access to Facebook's gift-buying flow.
Second-order effects
- Developers offering gifts in the shop will compete for prominence and purchases, making the Gift Shop's selection and placement rules more consequential.
- Facebook's earlier micropayments push gains a broader set of items to transact around, tying developer participation to the utility of its payments flow.
Third-order effects
- If Facebook continues opening the catalog, the Gift Shop shifts toward a platform model in which Facebook supplies distribution and transactions while developers supply inventory.
The trend: Facebook is turning social gifting from a closed virtual-goods feature into a developer-enabled commerce channel.