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Why have a Facebook shop? from @FreshNetworks

Online fashion retailer ASOS recently announced that it would be opening a Facebook store at the end of January, allowing users to buy items directly from within the social network rather than having to click through to the ASOS homepage.

This is becoming a trend for major retailers and we will see more of it in 2011, but is it a fad or is there real reason to take this form of social commerce seriously?

A report from Experian shows that ASOS gets a lot of its traffic from social media sites. In December their Social Networks and Forums category was the third biggest source of traffic to the retailer’s website, accounting for 14.62% of all traffic to ASOS.com. Social networks also seem to endear more brand loyalty for ASOS than other sources of traffic: 65.5% of the visitors coming via the channel were returning to ASOS rather than visiting the site for the first time. By way of comparison, 56.9% of customers that came via search engines were returning visitors.

Facebook is clearly a very big part of the social networking visits delivering traffic to ASOS, and alone is responsible for 12% of all visits to the website. As the second single biggest driver of traffic to ASOS after Google UK, Facebook has become an integral part ASOS’s online strategy; allowing consumers to buy products directly from Facebook is the next logical step for ASOS.

Keeping consumers in one place for any period of time online is challenging, especially given the millions of other websites available for people to visit. The same report highlights that the average session time for a visit to ASOS is just over 12 minutes and interestingly their Search Sequence tool shows that the number one search term that UK Internet users type into search engines, both before and after ‘asos’, is ‘facebook’.

When people online are navigating away from ASOS, the first thing they want to check is Facebook. So if people can shop through Facebook, then they have no need to navigate away from their familiar surroundings. As the average session time for a visit to Facebook is 27 minutes, it could be argued that consumers are more likely to hang around to shop through Facebook than they are on the ASOS site.

The Facebook store is due to go live by the end of January and, although this may lead to a drop in traffic coming from Facebook to the ASOS store, overall the company will expect to offset this decline by making additional online sales that it would not previously have captured. With nearly 400,000 followers on Facebook, ASOS has a huge captive audience to target.

FreshNetworks will be monitoring what happens to see how successful the campaign has been, and what lessons should be learnt.

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