Amazon's Facebook Integration Is The Future Of Commerce

amazon jeff bezos

Photo: AP

After advertising and credits, we believe the one of the next big businesses for Facebook will be e-commerce.So far attention has focused on Facebook’s efforts to turn itself into a storefront — to get e-tailers to build shops on its Pages.

But another way bring the power of Facebook to e-commerce is to integrate with an off-network store.

An amazing example of this done right is Amazon. They’ve had Facebook integration up for a little while; it’s still in beta but anyone can sign up.

It’s like looking into the future of commerce.

Two reasons we’re so enamoured…

  • The first is recommendations. Recommendations are hugely important to e-commerce and commerce in general. By plugging Facebook’s social info into its own recommendation algorithm, Amazon can make even better recommendations (which translates to more purchases and higher revenue).
  • The second is that the social graph creates social incentives to buy. By bringing in my friends and my friends’ info into my Amazon experience, Amazon gives me more reasons to buy, like my friends’ birthdays. It also gives me more of an incentive to visit Amazon. Presumably my Facebook friends (or at least some of them) are the people I care about the most, and am more likely to buy stuff for.

In the short run, this means higher revenue for Amazon. But in the long run, it means that the way we shop online is going to change.

On the right, there will be a box where you can connect with Facebook

Looks nice.

Let's go!

Here we are! What matters here is that it's not just Amazon selling on Facebook, but bringing your social graph ON Amazon.

This is genius -- all your friends' upcoming birthdays. What do you do for friends' birthdays? You buy them stuff!

You can also see the things your friends like -- which are presumably also stuff YOU'll like. (This is pretty accurate.)

Let's look up one of our friends. Let's suck up to our boss by buying him something.

Here Amazon pulls in his Facebook info to make recommendations.

The wish list feature needs work -- we haven't seen one friend where it's properly integrated.

Let's see what type of movie he likes!

What's interesting here is how Amazon makes the recommendations.

This isn't a movie on Nicholas's Facebook page -- presumably he already owns it. Rather, Amazon took the movies on his page and plugged them into its own recommendation system to take a guess at what he'd like.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at