Investors may be shunning Facebook right now as it searches for a viable business model, but investment in the Facebook ecosystem is still healthy.
Berlin-based f-commerce startup Ondango has just received a further $500K (taking total investment to $700K) funding led by the new VC Connect Ventures in London. Ondango makes it easy for businesses (core target is fashion, sport, design and music brands) to set up shop in Facebook, and it makes it easier for fans to buy from them – with no messing around authorising/accepting/installing Facebook apps. Ask a user to accept/install a Facebook app – and you get a dropout rate of 80% according to Ondango.
The hosted Ondango stores allow business to offer fan discounts, daily deals, and complete transactions on their Facebook Page within a Facebook-themed interface for €9.99 ($13)/month. He says that the company is starting to see some trends emerging among its customers. Co-founder Jose Matias del Pino says average conversion rate is 1.3%, average order value is $35 ($45), with impulse buys selling most successfully.