I don’t know if you are, but I’m fascinated by the future of the Buy Button. Tremors were caused when Pinterest, Instagram, Facebook/ Shopify and Google all announced that they were looking into the technology.
With Pinterest Buy Buttons – http://techcrunch.com/2015/06/01/pinterest-buy-button/#.7gbuy8:Wavi
Facebook and Shopify Buy Buttons: http://techcrunch.com/2015/06/10/never-leave/
Anything that removes a step or friction in a users shopping journey is a good move for the customer but how could this affect your business?
Some ecommerce business models such as dropshipping or reselling other brands, typically means tighter margins. The rise in social media has meant own-brands can directly talk to the end customer and get the volume they previously would need wholesale for.
Sure the set up costs are higher but with places such as Alibaba and companies like BigCommerce allowing direct purchasing via their platform, I believe this space will only grow stronger.
I few years back, I organised a collaboration for a brand I represent with a TV celebrity who has over 2million followers across her social networks. When she was on television wearing an item from the collection, that item would sell out. Fast. We used MetricsMate to track it live and all those sales were via mobile.
You can picture it now, people see the item on TV, have their phone next to them, Google the name of the celeb + item and start the buying journey.
Imagine that scenario with a buy button on social and Google. 2million people that don’t need to leave social and if they do, it’s right there in Google Shopping. It removes website issues, speed issues, hosting issues, checkout issues, etc. You’d expect it to result in a massive increase in sales.
Now, there’s obvious benefits to the button but there will be a new cost etailers have to factor in. Each merchant will probably have a commission of sale or a cost per click. This is a good and bad thing.
Depending on what these fees are, paying for this new technology will be near impossible for retail brands that operate on a tight margin dropshipping model.
What’s your thoughts on the buy button?
Good, bad or industry dependant? Please comment below or tweet me direct via @dclutt