Just as retailers gravitate to densely populated, highly trafficked areas in the real world, they are now following that model in the virtual world. Rather than hoping for customers to come to them, they’re going to where nearly 700 million consumers are not only spending their time but sharing their opinions, recommendations and (in some cases) purchases—Facebook. So far, 100-plus brands and retailers have experimented with selling directly on Facebook, and more are jumping in every day.
Michael Fauscette, an analyst at research firm IDC, predicts that 10-15% of total consumer spending in developed markets may be funneled through sites such as Facebook in the next three to five years.