With Twitter recently working with Shopify on its new ‘Buy’ button, it looks as if e-commerce is the exciting new FinTech playing field for the tech and social network giants.
Both Facebook and Pinterest have also worked with Shopify to expand their e-commerce capabilities, most noticeably in the form of a buy button that allows users to make shopping purchases directly from the social websites or applications. It is reported that Google intends to scale up its ‘Purchases’ – which are basically ‘Buy’ buttons – later this year and beginning of the next.
The assumption is that these buy buttons will drive an increase in consumer shopping and tackle that pesky conversion drop-off rate.
However, a recent study suggests that everything is not as simple and rosy as that.
According to a study by Koozai, out of 1000 UK small businesses 42 per cent have said that they believe the Google Buy button “would negatively impact their sales”. Only a quarter (27 per cent) actually said that such a Buy button would have a positive impact on their sales.
One of the reasons that the research’s findings are circumspect verging on concerned is that many smaller merchants may not be fully aware of what exactly a Buy button will entail.
“With 31 per cent saying they didn’t know, the survey suggests businesses are either unaware of the pending ‘Buy Now’ button or are worried by the change and are automatically assuming that Google will be making profit at their expense,” said Samantha Noble, marketing director of Koozai.
“The data suggests that businesses need to be educated on the pros and cons of the Google ‘Buy Now’ button,” said the report.
Therefore, it looks like any big Fintech player looking to venture into the e-commerce and Buy button arena will have to have a strong marketing campaign showing consumers and businesses exactly how a ‘Buy’ button will benefit them.
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