Retailing is all about finding and developing a strong distribution channel and building sustainable sales opportunities through great marketing.

Wal-Mart has conquered the brick and mortar space and is now making great strides on the internet. Their success is built on serving large volumes of individuals with value pricing and convenient locations.

Every day Wal-Mart attracts huge crowds through their strong marketing initiatives, so no one can argue with their ability to build out a strong sales channel…

Then why should Wal-Mart make Facebook a subsidiary sales channel?

To access the huge crowds of potential shoppers within social networks.

15 Slides suggest how to appeal to Facebook users…

Wal-Mart could start by committing to be the gift merchant of the internet. They already sell and distribute a lion’s share of the $150 billion dollar gift business in the US.

With Facebook, Wal-Mart will become the gift supplier for the millions of families and friends who share birthdays, weddings, births, and holidays each year. (They already gather on the network to share everything else).

Facebook would be Wal-Mart’s online gift sales channel, as well as its virtual greeter…

What do you think? Should Wal-Mart call Facebook and make an offer?

Mashable shared a video and some details concerning the state of the internet.

Jesse Thomas created this video to demonstrate how big the internet is becoming….

This is one big party and it is great to be involved!

JESS3 / The State of The Internet from Jesse Thomas on Vimeo.

PayPal and Facebook have signed an agreement to work together on a payment system.

We think that this recently announced partnership is a great idea!

This combination of heavy hitters will work, and we have proven it with our party, for the past several months. This action represents a validation that we are on the right track, and have some forward vision that we hope others eventually will recognize.

AlbinoPhant has been using PayPal integration with its Facebook application since the release of our test white elephant game in December. The online Yankee Swap format uses PayPal so that friends and family can purchase gifts through Amazon and have them delivered to everyone’s door…

Yes, we are also combining Amazon with Facebook and PayPal… (and UPS for delivery!)

Not many people realize that we even exist, but I guess this news demonstrates that some of our ideas are on the cutting edge…

Thanks for the validation you two!

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Facebook, Twitter and Buzz need to help social media make money…

This economy is making one thing abundantly clear…

The web needs money to survive!

And this money must come from some type of sustainable payment system. Free is a great price for consumers, but it fails to pay the bills for a business, even on the internet.

In the last week I have received two emails from the internet CEO’s explaining why they must now charge for a service that was once free. Both listed current economic realities as the reason for making the change.

I am OK with this news, because I accept that everything on the web cannot be free. In addition, I don’t believe that advertising should be called upon to subsidize all of these social networks.

The idea of a free web or some type of payment system is being debated in many internet circles, and particularly as it applies to the traditional news networks. Nielsen just completed some research as to what consumers would actually pay for on the web. The results indicate that consumers are more than willing to let advertisers pay for the free use of news stories, yet they will pay for some things.

The bright spot for those who believe that you get what you pay for, is that the survey found that internet users expect to pay for movies, music, and games. So it appears that we all will pay to be entertained in the internet.

And users spend more time on sites like Facebook to share, videos, images and games; so it appears that Facebook can provide a springboard for this entertainment-paying economy.

The fact that Facebook is already monetizing with advertising and virtual goods from games and other entertainment applications reinforces the survey results… A Free platform, with Paid entertainment venues builds a great partnership.

Online party games are well positioned to be able to find a sustainable monetization structure within these social networks. Parties that offer an opportunity to purchase a real gift will benefit from the proven economy of eCommerce from the likes of Amazon or Ebay.

Time will tell if the public will begin to pay for many of the services provided on the web. But current trends and public opinion point to some great opportunities in a few niches.

Social sites on the internet usually take one of two tracks to success: One is to create products with mass appeal, and the other is to find a valuable niche.

Mass appeal strategies usually require something that appeals to multiple ages and varying needs or interests. Facebook or YouTube come to mind as social sites with mass appeal.

Niche strategies focus on a smaller number of prospects or demographic, and then gather their customers from a market with significant numbers. Entrepreneur magazine suggests that “A niche marketplace is a small, specialized market segment within a larger, viable commercial industry”.

The AlbinoPhant Party is built to satisfy customers within the DSGS niche, which is a portion of the well established $115 Billion dollar US Gift Sales Industry.

What is a DSGS? They are gift purchasers who shop for and share gifts with those they love from a distance, or a Distance Separated Gift Shopper. Regular gift shopper’s purchase locally, then they wrap the item and make the delivery in person at some event or party. On the other hand, Distance Separated Gift Shoppers tend to rely on internet resources for their gift shopping needs and have deliveries made by others. Or they purchase locally, box and ship the item using standard shipping services. They usually miss the actual gift unveiling because distance has restricted the more desirable personal attendance.

Sarah Christensen is a DSGS. She is a parent, a child and a sibling of individuals who live at least a day’s drive from her home. Sarah has a history of supporting her family and friends by purchasing gifts and personally attending events or parties with those she loves. Even when separated by distance, she continues to look for efficient and economical ways to share with this group. Because she is over 50 and an empty nester, the volume of family and friends who live a distance away continues to increase, forcing her to become a regular Distance Separated Gift Shopper in order to remain supportive.

The DSGS also relies heavily on social networks to stay connected to those whom they wish to support. They also rely on e-Retailers, UPS and other gift delivery services to facilitate the need to share these gifts and build memorable interactions.

The total percentage of the US gift sales industry included in the DSGS niche is not measured, but there are indications that it is large and getting bigger. We know that Sarah’s age and family demographic group is joining the social networks in ever increasing numbers. And we also know that American family units are dispersing in larger numbers with each passing day. But the DSGS niche is so much more than just an older age group. Gen X and Y both are experiencing the same problems of gift support from a distance. They have their parents, grand parents, siblings and college friends who are dispersing at an ever increasing rate.

There should be no argument that the growth in social networks and online retail sales is partially a result of the needs of the DSGS niche. Online activities that can combine gift giving support with a uniting conversation can flourish as they serve the Distance Separated Gift Shoppers.

What other resources are the DSGS’ers looking for?

While the US is off for a President’s Day today, many Canadians are off for a holiday as well.

Family Day is celebrated in the provinces of Alberta, Ontario and Saskatchewan on the 3rd Monday in February.

This day has been set aside to highlight the importance of family life and to provide an opportunity for Canadians to connect with all of their family members. Many gather together to enjoy public events or to stay inside and play a board game as a group.

The Bookworm’s World gives a historical perspective and says Family Day was to “reflect the values of family and home that were important to the pioneers who founded Alberta, and give workers the opportunity to spend more time with their families.

At PartyWeDo and with AlbinoPhant, we salute this focus on family connection and solidarity…

Happy Family Day!

Nice Olympics too!

We all love an imaginary story. We read them to our children and we watch them on the big or small screen. Most of these stories have some basis in reality, allowing us to use them for our personal lives.

There are two imaginary stories which caught my attention this week. One was a reminder of the Dr. Seuss classic, Horton Hears a Who and the other was a song by Matt Kennon that introduces a suicidal man and a pregnant teen, both at a moment of personal despair.

Wow…A Dr. Seuss and suicide combo? OK, here is where I am going with this…

We all live with real people and with real issues, but the virtual world of Facebook and My Space have created a connection with people that is somewhere between imaginary and real.

We continue to suggest that we should have more REAL within our internet connections.

Many of the new internet tools have us living somewhere in the imaginary world of connection, not really knowing those we list as “Friends”. In these sites we may never have any actual contact with the people with whom we interact, we just type, read and see a profile picture.

Jesse Stay dedicated a post to this subject as he discussed the real connections and imaginary contacts of Facebook and Buzz. He used Horton’s story of the Who to illustrate his point.

This got me thinking about why I am on Facebook and why I use other web tools. Facebook is mostly my virtual gathering place for staying close to the real people in my life.

Our party network on Facebook is dedicated to building virtual events for real people, to provide real support for them. We reject the idea that virtual gifts and imaginary support can take the place of things that are real.

Let’s illustrate the reality of human support with this song (listen to the words of these imaginary stories and see the value of real support)

The lyrics give an example of what real people deal with, but most importantly they demonstrate that someone who cares can make a real difference, even when reaching out through technology (a cell phone). A real friend, inviting someone to a worthwhile event or making a personal family commitment, can offer real support to others. We don’t need so much virtual fluff, but we do need real support between our family and our friends.

An imaginary story can point toward reality, but it is the real people who give support to those they love, even when using tools like phones, keyboards and Facebook.

Sending virtual flowers or teddy bears to our casual internet contacts will never have the same impact as gathering our real friends together and offering some real support.

Facebook will never take the place of our personal interactions, but it does a pretty good job of mimicking the gathering and the support process. It’s value increases when our family and friends live a distance from us and we desire to give them some regular support.

We suggest that activities hosted on Facebook are more supportive when they mimic that which is real and rather than the just the imaginary.

What are you doing that is real?

Valentine’s Day is a big gift giving holiday, with 2010 gift sales sitting at about $14 billion for the period, according to the National Retail Federation.

This is not nearly as big as Christmas, but plenty of volume to make every retailer take notice.

And it is not just gifts that sell for this season…. Valentine cards are sent at a rate of 152 million a year according Hallmark.

Like Christmas, the giving is shared widely between family and friends, with many gatherings scheduled to share in the experience.

Adding to the regular activities is the social networks who have really embraced the Valentine’s Day giving period this year. According to a report published by Allfacebook, the virtual world has been very active this February, sharing everything from a virtual Love-o-meter to Valentine’s Day Massacres within the games on Facebook.

What is interesting is that we have moved less than 50 days down the calendar since Christmas and we are still shopping for ways to support each other through gift giving.

There should be no question that gift retailing is one of the serious economic drivers in our economy and presents some great opportunities, both on and off line.

This year, we are witnessing how Valentine’s Day is a serious driver of the virtual economy on Facebook as well. FarmVille players have already sent more valentines in 18 hours than all the Hallmark V-day cards sent last year!

Retailers and game developers are moving to take advantage of our human desire to be generous with those whom we love. The sales numbers for gifts, cards and virtual fluff is just further proof that gift giving remains a strong social glue.

The question remains: Who will make the sweetheart deals and applications that will combine social networks with real gift sharing between family and friends?

Thanks to Style Grrl for the great image

Time reporter Dan Fletcher recently tried to use Facebook as his florist, with mixed results.

He chronicled his adventure in a piece titled:
Gift Giving on Facebook Gets Real

This tongue in check portrayal illustrates the challenges that retailers will have as they attempt to move from virtual gift selling to the real deal on Facebook.

Dan attempted to use a Facebook application to purchase and deliver some actual roses to three women on his “gift list”.

In the end, only his mother would take the roses from him, and here is why…

Facebook is not designed to be a convenience store. If retailers are looking for another distribution channel like 7/11, they will fail in this space. Purchasing convenience is not what social networker’s need when they come to Facebook. They are there for something different.

Facebook is a friend and family gathering system with the potential of being a fabulous retailing format. It can be the perfect place for passing out real gifts to people who WANT to stay connected. But the key is not the convenience of the purchase; rather it is the simplification of the gift sharing process. Even then the sharing must be a part of the engaging conversation within the Facebook experience. Retailers who can facilitate the sharing of gifts within these walls will find the gift selling process simplified.

Facebook is more like a party than a convenience store. Retailers who can inject a fun atmosphere of a group activity within the gift giving process will fit the Facebook model perfectly.

Until Dan’s real flowers can join the Facebook party, they will wilt in the delivery box.

The conversation and measurements concerning retailing on Facebook and other social networks continues. There seems to a bubbling desire to discover a way to introduce real-world retailing into these virtual words.

So far most of the measurement tools have relied on popularity measurements, such as which brands can garner the most fans. Most marketers realize that fan count and real product consumption are miles apart when converting eyeballs into cash.

Heather Dougherty, Director of Research at Hitwise, posted some interesting details on the amount of traffic that social media sources have sent to major retail websites. It seems that there is a growing number of social networker’s who want to at least continue to engage with brands from Facebook and simular forums.

Heather suggests, “one common question regarding the relationship between social networks and retailers is how to be sure that the traffic coming from social networks is not just a by-product of their popularity.”

Adding to this concern is the reality that retailers have not yet found a way to actually retail on the pages of Facebook. This Hitwise study only demonstrates how well social networks have been in pointing users toward the brand’s online or offline presence.

Eric Eldon added his commentary on the Hitwise report when he said:…”most retailers are still experimenting with a variety of approaches to building a presence inside Facebook.” He also suggested that some retailers are beginning to find ways to directly sell goods to users.

It is hard to measure the effects on retailing from these networks, but most agree that the actual sale of product within these networks has fallen short of what it could be. Brand popularity pages have become nothing more than another type of advertising presentation to the many Facebook users.

Retailers will need to do more than use the networks to make themselves more popular in order to build revenue from Facebook. They must find ways to engage users in the purchasing process with a group of their friends. Then Facebook could be used to organize great shopping experiences and then mimic the fun of sharing a purchase with others.

Once a retailer develops the group shopping experience, they will have a selling machine like none other, rather than a virtual extension of a popularity contest.