Apple Inc. (NASDAQ:AAPL) is turning towards acquiring e-commerce social network, The Fancy and this move would be a successful one for the tech giant, according to Telsyte.
E-commerce Social Network, The Fancy is similar to Pinterest that helps users make wish-lists of things, but The Fancy is different from Pinterest as it also enables users to buy some of the items able to be purchased through its site. The social network, which is backed by co-founders of Facebook and Twitter, takes a 10 per cent cut from purchases.
This news is first reported by Business Insider that Apple is currently in talks to buy the social e-commerce site The Fancy, although Apple Inc Australia declined to comment on the report.
Apple Inc. (NASDAQ:AAPL)’s objective to acquire The Fancy could be to market more products to its existing users, beyond just the applications and accessories, through its iTunes and Apple stores.
Apple Inc. (AAPL) wouldn’t be the only tech company entering into e-commerce but Facebook Inc. (FB) also facilitates the retailers to set up shopfronts on its social media website.
“Social networks, themselves, try to monetize their user base, but I think it’s interesting if Apple starts dabbling there, as well, people are used to spending money with Apple, and not so much on Facebook.” Fadaghi told ZDNet.
“Facebook is a social platform for interacting with family and friends, not somewhere you’d think off the top of your head to go purchase something from, and that is one of the biggest differences.”
The users of iTunes and Apple Inc. (AAPL)’s App Store are even more familiar with the way of micro purchases that can be less than a dollar. The question is will they be comfortable with making bigger purchases the same way?
The change from micro to macro purchases is not difficult for the Apple’s users, as loyal users may already be spending their money for the expensive Apple hardware and accessories.
Fancy being an e-commerce social platform would be very viable for Apple Inc to exploit it and develop it to turn it into something really worthwhile.
Yet there is no confirmation of a signed deal and no guarantee one will happen. But the acquisition of Fancy could change all that by giving Apple a clear way of converting people’s interest in an object into a sale.
Apple Inc. is capable of being an e-commerce layer into its OS and let the application developers hook into it, giving them a way to make money besides advertising. Recently, Fancy has also rolled out a system that gives users a cut of the sales their lists of objects generate.