Brands shut down Facebook stores following poor ROI

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Many large brands have closed their Facebook stores following a poor ROI (return on investment), according to an article published by Mashable.

F-Commerce - the sale of products via Facebook pages - gained a significant level of popularity last year, leading commentators to forecast that the social networking site would become "a major revenue driver for retailers over the next decade."

Whilst popular as a host for social media marketing campaigns, a recent Bloomberg report has displayed that Facebook might not yet have what's needed to provide a shopping experience; Gap, Nordstrom, J.C. Penney and GameStop have all shut down their stores on Facebook within a year of opening them.

American video game and entertainment software retailer, GameStop, opened their store April last year (2011) but closed it just six months later.

Vice president of marketing and strategy at GameStop, Ashley Sheetz, explained the reasoning behind the closure.

Speaking to Bloomberg, she revealed: "We just didn't get the return on investment we needed from the Facebook market, so we shut it down pretty quickly.

"For us, it's been a way we communicate with customers on deals, not a place to sell," she added.

Although there are many brands still utilising Facebook stores, Sucharita Mulpuru, an analyst at Forrester Research, has damningly compared F-Commerce to "trying to sell stuff to people while they're hanging out with their friends at the bar."

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