Can social networking sway ecommerce shoppers?

[Kristijntje]

The marketing potential in social networking sites is enormous. But its future for retailers is anything but clear...

...cutting through the noise is the theory that social networking offers retailers a grand new venue for marketing their products and increasing brand awareness—if they can cut through all that noise. To date, the overwhelming response from e-retailing executives and industry experts, after they’ve scanned all baggage, is two basic questions. First, could social networking be another web fad, which launches with fanfare, gains a bandwagon of millions, then soon loses steam, winding up with a small but dedicated user base? And second, is the concept of blending social networking and the branding and marketing efforts of e-retailers even a good idea to begin with?

For the moment, a handful of retailers are experimenting with social networking in an attempt to answer these very questions and capitalize on the venue by getting in on the ground floor. These merchants, willing to take on what many industry observers call a risky proposition, are either setting up a “space” on one of the social networking giants like MySpace or Facebook, acquiring all or part of an existing network, or building a network of their own.

full article: http://www.internetretailer.com/article.asp?id=19738