Yesterday, Twitter unveiled its first serious foray into e-commerce via social media. News of the test was greeted with enthusiasm on Wall Street. The stock gapped and traded near a six-month high.
Right now, the stock is trending into negative territory, mostly due to an overall weak market. Investors seem to be holding their breath in anticipation of the Apple conference. Who knew a smartwatch would captivate the entirety of Wall Street.
I guess it beats the round robin of ‘is the market going to crash’ or ‘will the market just continue to trade higher forever’. A side note on the perma-bulls. The last time you said something wouldn’t go down, we nearly lost the financial sector.
What is the Twitter Buy Button
Well, if you’re an avid user of twitter, it’s the latest in impulse buying. Buy with one click? Yeah, better lock your phone from your toddlers. Either that, or you will personally keep a UPS driver in business for life.
For now, the system is a test. The list of partners varies from Eminem to Burberry. I know you wanted variety Twitter, but damn. Oh, Home Depot is also on there, so if you ever turned to Twitter for washing machine recommendations, you can now buy it.
What does the company need to test? Stuff that is actually social. Yes, it’s great they have Eminem and Brad Paisley. Concerts are inherently social. But Burberry and Home Depot? Not so much.
Twitter should start testing movie tickets and other home entertainment. People use Twitter to talk about what’s the latest. Not the fact they are building a porch and forgot a couple 2x4s.
Take Sharknado for example. That was SyFy’s runaway Twitter success. It actually had more social mentions than viewers. Imagine Syfy being able to place a buy button for a digital or blu-ray copy of the show. Instant impulse buy.
Also, open the service up to small businesses. That’s going to be a key metric anyways. Turn the affiliate marketers loose on it. If anyone will find a way to make something work, it’s going to be them.
The stock is giving back some of its gains in midday trading as the overall market is weak.