Facebook Goes Shopping

• Facebook Inc FB has announced it is testing a new set of in-app e-commerce initiatives.
• The initiatives are geared toward making mobile shopping more user-friendly.
• Facebook’s massive user base poses a major threat to Amazon.com, Inc. AMZN if Facebook can gain significant e-commerce traction.

Facebook announced on Monday that it is testing new app features allow users to shop for clothing and other items without ever leaving the Facebook app. The move by Facebook is another step into e-commerce giant Amazon’s space and could prove hugely beneficial for Facebook if the number of mobile shoppers continues to grow.

New features
One of the new features that Facebook is testing is advertising that allows users to browse through a large selection of a brand’s products without being redirected to another site.

In addition, businesses will be able to display products for purchase on their own Facebook pages, and users will be able to use a new “buy now” button to make more purchases directly on Facebook.

Making it easy
According to eMarketer, less than 2.0 percent of all retail sales currently happen on mobile phones. Facebook is hoping that the changes it has made to its app will make the process of mobile shopping faster and easier for its users.

“We want to build native experiences that make it easier for both people to discover products on mobile and businesses to drive more sales,” Facebook said on its site.

1.5 billion threats
Facebook’s push into the e-commerce space, including the creation of a new section on its app that takes users directly to a shopping page, is likely making Amazon uneasy. Amazon is currently the unrivaled North American e-commerce juggernaut, but Facebook’s user base of 1.5 billion members could pose quite a threat to Amazon if Facebook shopping catches on.

Disclosure: the author holds no position in the stocks mentioned.