Why do we need an online gift distribution system?

There a millions of people on social networks who are connected ether by strong friendships or genealogy. These relationships often result in gift giving opportunities several times during the year. The gifting process works well when using traditional distribution methods.

But this process has been a bit of a problem for social sites like Facebook, so they have attempted to replicate gift giving using virtual gifts. These “Un-Gifts” don’t have the same value as something that is real, so there is not much real support provided with these virtual items.

Families and friends give gifts during birthdays, weddings, baby births, holidays and more as a means of support.

These actual gifts for important life events have traditionally been handled outside of any online social network, so we need new applications developed to pass out the real gifts on Facebook.

Gift distribution is very important all year long…

We are now in the graduation season and Americans will spend an average of $88.01 on gifts for about two students this year. According to the National Retail Federation, total spending on graduation gifts is expected to reach $3.9 billion in 2010.

Distribution of these gifts is usually accomplished through one of three methods:

Personal; where the gift is handed directly to the recipient.

In a Party; where gifts are shared and opened as a group.

Shipped; where the gift is sent through the mail or via UPS.

This slide presentation will explain how one company is preparing to help us pass out the gifts on Facebook, for any occasion.

This statement represents the PartyWeDo “Cause”…

Our cause began as a result of real events, and the passion for it is based upon real emotions and real needs.

There are three supporting pillars to the cause:

People

Memories

Giving

Genesis Statements:

* The love for our family is real and is the most powerful motivation for our actions.

* The years of real memories have addicted us to the need to keep generating more.

* Support for those we love requires real giving, which cannot be virtually substituted.

To Sarah and me, the PartyWeDo cause is very personal. We are motivated to contribute because of the people and the memories that we love.

You may have similar people and memories in your life, for which this cause might be valuable as well. If so, we hope that you will join us in making the internet experience like REAL.

The AlbinoPhant party, and the others that will follow, make gift giving on the internet as real as possible.

We are passionate that the virtual experience should somehow send people back into the real world and provide real support.

Memories are not built in a vacuum, so these parties should link real people into an activity that adds to the stories, emotions, and the laughter of great personal connections.

It is hard to stay real in a world built on keyboards, bandwidth and servers. Nevertheless, our cause is to make some of this virtual world like REAL.

NOTE: Thanks to Jesse Stay for suggesting that we publish our Cause for you to read…

Two powerful families are married for user convenience and for future opportunity.

So far, the wedding has been kept hush hush and is flying under the radar… So don’t expect this to make the front pages of the tabloids anytime soon.

It seems the social media superstar Facebook, with its huge entourage of friends has been secretively matched to Amazon’s world leading product inventory, by a party application developer.

Like most weddings, the focus is on a party, and in this case the party is the center of attention. Gifts for the party are to come from the Amazon side of the isle and the guest list will be handled by Facebook.

E-commerce insiders understand that the Facebook family is a very close-knit bunch and that an arraigned marriage will benefit both sides in this case. Massive gift sales is on the mind of the Amazon group and greater support and conversation is what Facebook members are counting on from this union.

Social media followers feel that the long-term success of this marriage will likely be a result of the party atmosphere in which the two have found common ground. Sociologists have long known that couples who communicate well and share with one another have a better than average chance to find success.

The fact that Amazon will shower the Facebook family with gifts should keep both parties happy, particularly when the Facebook side can see the profits that can be generated through real gift giving. Of course, Amazon is happy to offer gifts to a partner who has so many family members pre-disposed to share with each other.

This marriage is expected to produce several great party applications that will benefit the entire family during birthdays, weddings, baby births and many holidays. The next generation of Facebook applications will benefit from the superior DNA of Amazon and Facebook to build a great experience for the users of social networks.

Look for more details of this story as they develop….

Gary Hayes has created this dynamic chart that demonstrates the real-time growth in social media. Pay attention to the ratio of virtual product sales and the REAL gift sales on Facebook. Then ask yourself 2 questions…

1. Is there room for growth in selling real gifts in social media?
2. Who is moving the real gift sales in social media forward, besides Facebook?

We watched the chart for 60 seconds and determined that over $10,000 was spent on virtual goods in the same time that less than $140 was spent on real gifts in Facebook.

We realize that this is an apples to pears comparison, because virtual goods encompasses all social media channels and Facebook gifts only measures a portion of a small service on one social network. And the chart does not track all of the real products sold by affiliate links from social sites. But it does show an opportunity for growth, especially when you consider that social media is a virtual mimic of real human interaction and that virtual purchasing mimics real-life  purchases.

Here is the thing you might want to consider… If people gather together in these internet social spaces and spend money on virtual things for each other, why wouldn’t they do the same thing for real gifts?

Think about this comparison:

Let’s assume that you sell me a virtual gift at $1 dollar, as a birthday wish for cousin Earl…
The result: You, Earl and I are all somewhat happy with this small gesture.

Now assume that you could sell me a $25 real gift at a 12.5% profit.
The result: Earl gets something real that he can enjoy beyond his computer screen.  I get the satisfaction that comes with providing some true support to Earl.  And you get $3.12 for facilitating the gift-giving.

Now all we need to do is find a fun way to pass out the real gifts in the social networks…. Any ideas?

There is a growing feeling that Facebook and other social properties will begin to join forces with online retailers to sell real products on their networks.
In fact when Catharine Taylor asked thought leaders to consider what is ahead for 2010, John Dudley, an editor at Hampden-Sydney College suggested that “At least one major retailer will develop an e-commerce Facebook app that will replace its entire “traditional” e-commerce Web site.

What does this really mean?
Can it mean that retailers will just increase their efforts by beefing up their fan page or throwing up some additional advertising on the walls?

No.. Mr Dudley is suggesting that e-commerce will move an actual sales channel into Facebook. This effort would require that a retailer build a storefront on the Facebook super highway. With a social network based store, users could stop and shop without leaving the Facebook system. They could use their regular profile, their recognized PayPal account and have UPS deliver the goods to their door. They would find shopping and sharing with distant family and friends a seamless experience.

What type of retailer would take that risk?
We suggest that gift merchants are the perfect group for the move toward an e-commerce/Facebook partnership, and here is why:

* Gift giving among family and friends sends about $115 Billion dollars into cash registers every year, in just the US alone.

* The concept of sharing gifts (virtual, at least) in Facebook is not a new concept, so selling real gifts through this space is not a giant leap.

* Facebook users have demonstrated that they want to stay connected and supportive to even the most distant contacts.

* Established affiliate sales systems provide the framework to track and administer the sales efforts.

Adding to this concept of e-commerce on social networks, a year end discussion on advertising trends suggest that; “Social media will provide a new sales channel for establishing product awareness and commercializing brands to better support traditional advertising or text-based ads”.
The keyword in this statement is the mention of a new sales channel, supported by advertising and other internet based tools. The integration of retail sales and online tools will provide the wise e-commerce pioneers with a head start into this emerging opportunity.

Which e-commerce retailer could take advantage of this emerging trend?
Amazon should be on the list, and so should Ebay. But Wal-Mart or Target could make a big move with this effort as well. Then there is Buy.com, Overstock.com and other 2nd tier online retailers, who might be looking for some differentiation from the big dogs in e-commerce.

It might be interesting to explore the possibility that an e-commerce retailer could use an engaging Facebook application to assist in gathering family and friends together to purchase gifts and share with each other.

We really like this idea…!!!

Your host has used a special offer code (1234) to begin a “test-drive” party that allows you to experience a gift exchange without spending any money…

Like a real test drive!

Here are the step by step instructions on how to get the invitation, RSVP, find a gift (virtually), get it wrapped and then join the party.

It is really easy, once you have done it one time!

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Final Step: HAVE A GREAT TIME.. You are going to love this party!

We have provided a way for you to take a “hosting test-drive” and to learn how much like a real party this really is. You can test this system with OFFER CODE 1234.

Here are the steps: Begin by joining the application HERE
Now follow these screen shots and balloon messages to start your test-drive…

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THEY ASK:
How do you take a regular group activity and turn it into an online mimic of the real thing?

Further; how do you turn the mimic of a traditional gifting venue into a revenue source for online sales activities?

Let’s look at eBay…

First… Look at what it takes to do a regular off-line sales auction:

The auction requires that many details are completed for a successful sale.
* There is gathering of the items for the sale.
* There is the cataloging and detailing the descriptions of each item.
* There are preparations for storing and then displaying the items for sale.
* There are the bidder lists and the invitations to come for bidding.
* There is the auctioneer who must be scheduled and compensated.
* There are the preparations for the auction ring and the bidding area.
* There are the multiple functions that support the day of the actual sale.
* There is the money exchange between sellers, bidders and the auction house.
* There is the out-bound freight of all the items that are sold.

How could all of these complex traditional activities be translated into an online version of a real auction?

Ask eBay!

Before eBay proved that some very complex tasks could be organized and understood by online bidders and sellers, nobody considered it possible.

Today, do we question if a traditional selling venue, like an auction, could be built and work effectively online?

No… We point to eBay!
Who would have believed in 1995 that the auction niche would become such a powerful force in today’s internet?

Now… Let’s talk about parties…

Let’s look at what it takes to host a party for a group who want to share real gifts:

* There is the scheduling of the date.
* There is the invitation list and the distribution of the invitations.
* There are the gift shopping and wrapping tasks.
* There is organizing and decorating the room for the event.
* There are refreshments and maybe some desert or drinks.
* There might be party favors or prizes that need purchasing.
* There are the party activities to plan and organize.
* There are the welcoming and the other host duties at the event.
* There are introductions; there is crowd control and some small talk.
* There is the gift table to manage.
* There is the clean-up and the thank you notes to send out.

How could all of these complex traditional activities be translated into an online version of a real gift party?

…Get inspiration from eBay… Then proceed to demonstrate that online parties can mimic the same experiences that family and friends enjoy when they gather together to share real gifts.

In 2009 AlbinoPhant is demonstrating what is possible for the gift party niche.
PartyWeDo seeks to leverage the positive experiences of Ebay, Amazon, PayPal, Facebook and others to build a catalog of online party activities to support the gift selling and giving processes.

Moving the traditional party online will take some time to develop, as people learn that it is possible. But eBay has demonstrated that even complex traditional activities can be converted into web success.

There are over 300 million people in the US that purchase or receive gifts several times each year. PartyWeDo is positioned to help many of them buy and pass gifts around in a fun-filled party atmosphere.

Ask eBay if that can be done…

The white elephant party is called AlbinoPhant, and the Christensen’s have been testing this online game with their grown children for the past 3-years.

“When our youngest got married and left the nest, we started sharing our gifts through playing this game, and we loved the party atmosphere and fun conversations this allowed us” stated Sarah, the mother of five and grand mother of seven.

The AlbinoPhant party is a mimic of the traditional White Elephant gift swaps that are common among social groups during the holidays. The Facebook game provides real shopping markets from Amazon for selecting and purchasing a gift for the event. Players virtually wrap the image of the selected gift and then the party is ready to start.

“The game is just like the real party in many ways. The gifts are opened on the web page, there is gift stealing among the players and all the fun conversation that a group shares in a standard party”, explained Bruce Christensen.

Like a regular gift exchange, the AlbinoPhant party selects players at random to open gifts and then displays them on a common playing page. There is a comment box which allows players to share banter and poke fun at each other during the activity. There is the option to add YouTube videos and other images into the conversation. All of this is accessed by individuals as they play on their computers, from anywhere in the country.

Sarah continued, “Our family is scattered from New Hampshire to California, so this online party saves all of us the travel cost to attend family events, while still allowing real fun and personal connection with each other”.

The AlbinoPhant party is a Facebook application and takes full advantage of the social networking tools available. The host uses Facebook’s network to send the invitations and then the Facebook sharing system allows party conversations to spill out onto the web.

“We built the application to be as close to the traditional party as possible, so that families and friends would feel comfortable with the game. We use trusted brands, like Amazon and PayPal, and when the party is completed gifts are delivered using standard shipping companies”, added Bruce

This online party is a real gift exchange, so players use ecommerce to purchase the presents for the party. Then after the party is finished, these real gifts are sent out to each player’s doorstep. This party breaks new ground for Facebook, where virtual gifts have been the norm, and adds a new partnership between online retailers and social networks.
AlbinoPhant is now available thru the internet for family and friends to share gifts, steal gifts and banter together just like they have done for years, and McMinnville is this white elephant’s delivery room.

The Facebook application link is: http://apps.facebook.com/albinophant/