Consumer Concerns About Facebook Gifts
Yesterday, Facebook announced a new initiative, Facebook Gifts, that allows users to buy and send gifts to their Facebook friends.
The program will be integrated with Facebook’s existing birthday and special occasion reminders.
Buyers are able to choose from a selection of actual items and gift cards. Once chosen, the recipient will receive an alert and must provide a shipping address. The buyer then enters a credit card to pay for the transaction.
The new program is an attempt by Facebook to create new e-commerce revenue streams at a time when the company’s stock price continues to fall.
The program’s success could hinge on consumers overcoming some additional privacy concerns. In order for a Facebook gift transaction to take place, the buyer has to agree to enter a credit card number, and the recipient has to be willing to give a shipping address. As a result, Facebook will now have two more two pieces of personal information on its users.