First, ecommerce on Facebook was billed as the next big thing. Then it was judged a disaster. The reality is that Facebook Commerce can be very powerful---if it’s executed correctly.

F-Commerce (as it is called by those who apparently don’t associate F with another word) now delivers significant sales for smaller companies. For 40,000 businesses globally that sell on both the social network and their website, Facebook sales increased from 15% to 22% of total revenue between 2011 and Q2 2012. 37% of companies that sell on Facebook say it is their only channel.

At the same time, big retailers, including Nordstrom, JC Penney, and GameStop, did short-lived experiments with F-Commerce and quickly ended them.

Why are some brands succeeding while others fail?

It is a result of the factor that makes Facebook so compelling to consumers: genuine social connection. Retailers that are authentic, build community, establish trust, and then sell their products are flourishing. These companies engage like a friend in the social stream, instead of trying to use Facebook like a more traditional ecommerce channel.

Companies that jump right to making the sale are floundering. Consumers are turned off by a hard sell or traditional etailing experience in the midst of their online social life.

• Should we experiment with Facebook Commerce?
• Do we have the patience and commitment necessary to effectively build sales on Facebook?