Though Facebook began as a free social network, but since becoming profitable in 2009 due to advertising revenue, the site has begun a slow trajectory toward ecommerce. Advertising Age recently reported on Facebook's sales-oriented updates.

A deal with PayPal in February led to greater development of Facebook's virtual product sales, which in turn have led to the sale of consumer goods through brand fan pages. Procter & Gamble became the latest company to participate, with Pampers adding a "shop now" tab to its fan page that led to more than 1,000 sales in the first hour. Advertising Age pointed out that although Facebook is not yet making any money from these sales, the future remains open.

"Once a number of marketers are doing commerce on their own, you have to wonder how Facebook is going to get a piece of it," David Berkowitz, director of emerging media at digital marketing agency 360i, told the website.

With ads being Facebook's major source of revenue, the development may maximize the site's potential by eliminating the distinction between marketing and commerce. A recent study from Rice University's Jones Graduate School of Business found that Facebook fan pages don't just benefit Facebook itself. Observation following implementation of a Facebook page showed that Facebook fans tended to spend 45 percent more money at the business in question.

Source: edlconsulting.com