IT Distance Learning News

Facebook e-tail dilutes branding

Offering customers the chance to buy products through social networking sites could endanger a firm's brand identity, says an IT specialist.

Those searching for a web designer course may be interested to hear that the head of Modera said retailers could fear losing control over how purchases are made.

Siim Vips, chief executive at the content management system, said: "They also lose the opportunity to cross over other products or services including any offers, deals, or benefits that the consumer may have with them."

While Facebook has a large audience, its potential for hosting branded transactions is still untested, added Mr Vips, and this could lead to many firms exercising caution.

"Whether they are ready to make transactions on the site through a brand remains to be seen," he added.

A recent article in FT.com pointed to a new phase in online retail as a number of e-commerce applications have appeared on social networking sites.

The piece offered examples including US floral gift retailer 1-800-Flowers, which has a virtual storefront on Facebook where members can buy and send flowers.

Written by Neil Thomas