retail news in context, analysis with attitude

CNBC reports that Facebook is testing a new feature called "Collections," which it says "will help retailers share their products on the social network — and for the first time allow users to click through and buy products through Facebook." Among the retailers involved in the test are Williams-Sonoma, Pottery Barn, and Victoria's Secret.

The story notes that "Facebook isn’t charging for this service yet — but presumably it plans to take a cut of all sales that originate on its platform. And the more people share products, the more they’re likely to buy ... With this latest move, Facebook is hoping to push into the next frontier of social shopping and capitalize on the power of people sharing products they like with friends. It only seems natural for the company to roll out this service in time for the holiday shopping season."
KC's View:
It is not hard to imagine that this kind of service could be hugely applicable across a number of retail venues. It also is not hard to imagine that Facebook is looking for any possible way to generate revenue and demonstrate to investors that it has a sustainable and profitable business model.