Facebook Q1 2021: No More Effort In Native Ecommerce

eCommerce
Written By Rick Watson

Listening to FB Q1 2021 earnings report, I am closing the book on Facebook's native eCommerce efforts that are not ad-driven.

Last year, I made the statement that if Facebook were to succeed in non-ads related commerce, it would have to invest like its life depended on it. Period.

The reason is that the natural inclination is to default back to that sweet nectar of high-margin ad business and not focus on eCommerce too much.

Well, that level of commitment and investment is not happening. Sheryl Sandberg's direct quote: "Don’t need commerce itself to become a big part to make the investment worthwhile."

That means it won't become significant, it's self-fulfilling.

Again, I'm not saying I ever thought they would want to challenge Amazon or Shopify or anything like that. But at times you like to play with ideas that Facebook will invest seriously after this. After hearing Mark Zuckerberg say that Commerce is a top 3 priority in previous years, I watched. And waited.

Well... The jury is in. They will not invest seriously relative to other players, which leaves openings for those looking at social commerce that does not have an ad-based focus.

I know at least 3-4 live streaming commerce startups out there now chasing the space.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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