Fred Wilson shares a powerful insight about social media and e-commerce – or social commerce, as its often known:
When users start in a social system that is divorced from the e-commerce platform, I believe the conversion rates are significantly lower, often by an order of magnitude or more. This, to me, suggests that the overhead of multiple systems reduces the effectiveness of the experience for users and is suboptimal.
Fred’s perspective is born from his experience of working with lots of ecommerce and social start ups. (more…)