Facebook is launching a new service called 'Gifts' which lets users
send real-life presents to one another.
Facebook Gifts will be available Thursday to a subset of users in
the U.S. Users will be able to click on a "gifts" link on their
Facebook friends' pages - birthday reminders or timelines. This will
display presents they can purchase, such as cupcakes from Magnolia
Bakery, a stuffed animal from Gund, or a digital gift card from
The recipient will be notified through Facebook to enter a shipping
address for the presents. Friends will be able to choose the color,
size or flavor that they want, or even exchange a received gift for
something else of equal value.
The 'gifts' feature marks the company's attempt to unlock a potentially significant new revenue stream, as Facebook will make money by taking a cut of each gift transaction. Currently, Facebook's revenue relies heavily on display advertising.