Facebook is set to lay its Gifts service to rest in August
Facebook has announced that it will be shutting down its Facebook Gifts service in August. This service had allowed the social network’s users to purchase and trade gift cards from businesses like Starbucks and Fandango. Shutting down the Gifts service will result in no layoffs, as those working on this service will have their attention refocused on Facebook’s Buy initiative. Earlier this month, Facebook unveiled the Buy Button, which is meant to promote mobile and e-commerce.
Gifts is to be replaced by Facebook’s new Buy feature
Facebook Gifts was launched in 2012 and was moderately popular among the social network’s users. Gifts and the Buy Button will serve a similar purpose that makes the existence of both services somewhat redundant. Facebook favors the new Buy feature because of its flexibility. The Buy feature may help Facebook further engage mobile consumers as well, as it will be easier to use from a mobile device, allowing Facebook to establish a stronger presence in mobile commerce.
Buy feature may be a less invasive way to engage users
The Buy feature could be a better way for Facebook to make money than the Gifts service was. The Buy feature is not only for users, of course, and will also cater to businesses using the social network. Businesses will be able to implant their own offers on advertisements shown throughout Facebook, allowing users to buy whatever is being offered with the click of a button. The company sees this as a less invasive way to encourage commerce activity without having to accost its users with notifications through its Gifts service.
Mobile focus continues to prove lucrative for the social network
Facebook has an interest in mobile commerce and designing features that could be easily used by a mobile audience has become one of the company’s priorities. The company also has a strong need to monetize itself, and has recently found success through focusing on mobile marketing. If mobile continues to prove lucrative, Facebook is likely to continue developing new features that have a very mobile-centric feel.