Twitter is building its own online store, a report from Re/Code revealed.
To give you a better backdrop, Twitter is competing with Facebook’s announced plan to allow merchants to sell goods directly on the site’s newsfeeds — and just like Facebook, Twitter wants to be an online marketplace too.
According to the report, the micro-blogging site is now working with Stripe.com, a commerce-focused startup which allows e-commerce sites and other online retail businesses to easily deploy a 1-click buy form on their sites through API implementation (codes).
If true, then expect promoted tweets with buy button spreading on Twitter’s feed, soon.
Of course, Twitter declined to comment because this is a “very business-serious” issue.
So how can Twitter generate profit with this? Well, they can charge a small fee on every transaction made through the one-click buy service. For consumers, Twitter will definitely its users to submit their credit card information before activating the feature, and for merchants, Twitter might charge you with a small fee like 3% or less, or more, of the transaction made.
Twitter’s instant retailing within its backyard could help boost its profit, and for other merchant services, this is an impending problem. There are various online merchant services available on the internet, and if Twitter can make this service big — merchants especially small and medium-sized businesses might abandon the traditional online retailing and rely solely on Twitter (and Facebook) to save some website hosting and additional transaction charges. / Source: Recode.