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 Wednesday, 12th August 2009, 17:00:00

E-commerce firms 'put off Facebook by branding concerns'

E-commerce firms 'put off Facebook by branding concerns'

E-commerce businesses may be choosing to avoid selling through social networking sites such as Facebook out of fear of diluting the brand name of their own online store, according to an expert.

According to the Financial Times, an increasing number of e-commerce businesses are looking to sell online through applications such as Facebook's storefronts, which allows businesses to sell to users of the popular site without having to log out.

However, customer relationship management software company Modera has suggested that many online retailers remain concerned that this could cause the dilution of their own site's brand name.

Modera also suggested other downsides to selling through Facebook, such as the lack of browsing and cross-selling potential, questioning whether or not the site is ready to be a sales portal.

Siim Vips, chief executive officer at Modera, said: "Facebook may have a large audience, but whether they are ready to make transactions on the site through a brand remains to be seen."

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Categories:  |  Ecommerce  |  

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