Facebook, Google dip their toes in sale of physical goods

Google (GOOG) and Facebook made their names by helping people find information or friends online. But in recent weeks the two rivals have made some surprising moves in a different direction -- the business of selling and delivering goods.
　　Facebook is trumpeting its new Gifts service that lets users order a wide range of stuff, from wine and cupcakes to pet toys and children's clothes, and have them delivered to friends. Google, meanwhile, has been tight-lipped about its recent deal to buy a small company that operates temporary lockers where shoppers can take delivery of items they purchase online. But some believe Google will combine the startup's delivery expertise with other services to help merchants sell products through Google.
　　Each venture is new and faces challenges. But if today's e-commerce is dominated by well-known retailers like Amazon and Walmart.com, analysts say Google and Facebook may see these initiatives as both a potential source for new revenue and a strategy for keeping their users engaged -- while giving people one less reason to visit Amazon or competing sites.
　　"These companies want to keep people from leaving. They would love to have a complete ecosystem where they own every part of the customer experience,
　　from browsing to buying and repeat visits," said Sucharita Mulpuru, an e-commerce expert at the Forrester tech research firm.
　　Google in particular may have reason to be concerned. While it still dominates the business of selling advertising keyed to Internet search queries, online shoppers today are more likely to start their quests on Amazon than Google, according to some studies. If that trend continues, analysts warn, it could make Google's site less attractive to retail advertisers.
　　Facebook also has good reasons to offer shopping on its site, as the social network seeks to broaden its business beyond selling advertising and games. Facebook made Gifts available to all U.S. users less than two weeks ago. But Sterne Agee investment analyst Arvind Bhatia estimated the program could become a significant revenue source, contributing "several hundred million dollars" of annual earnings.
　　Facebook isn't selling its own products; instead it partnered with big chains and independent merchants that sell items through the Gifts program and give Facebook a cut of the proceeds. Facebook won't say how much, although Bhatia believes the cut is 10 to 15 percent.
　　After a customer places an order on Facebook, most of the partners handle their own processing and delivery. But Facebook said it's operating a small warehouse to store and ship goods from smaller partners that don't have their own infrastructure.
　　While Facebook seems unlikely to match the size and scale of a retail giant like Amazon, Gartner tech analyst Brian Blau said the social network has a tremendous advantage in the information it has about each user's friends, their personal interests and important dates like birthdays and anniversaries, all of which can be used to nudge people into buying gifts.
　　"The act of gift-buying is a very social activity," said Blau, adding that Facebook could eventually sell other products, such as concert souvenirs or clothing, that people talk about with their friends.
　　Others are skeptical. People visit Facebook to interact with friends, not to buy things, said Mulpuru, who added that online companies like RedEnvelope have had little success in building a business around suggesting gifts for friends.
　　Google, meanwhile, has already waded into retail commerce. In addition to selling digital goods such as music and videos through its Google Play online store, the company has experimented with electronic payments through the Google Wallet service, launched a daily-deals program called Google Offers and revamped its shopping-search service by shifting to a model where merchants pay to have their products listed.
　　But the search giant has said little about its late-November purchase of the Canadian startup BufferBox, which operates lockers at locations such as transit stations and grocery stores. Online shoppers can have items shipped to a locker that's secured with a temporary PIN code, and pick them up later if they're not able to be home for delivery.
　　Google has also been quietly testing plans for same-day delivery service in San Francisco, according to reports citing unnamed sources. As described in The New York Times, Google may contract with courier companies to deliver merchandise that customers order from Google's retail partners.
　　A Google spokeswoman declined comment on those reports and wouldn't discuss plans for BufferBox, except to say, "We want to remove as much friction as possible from the shopping experience, while helping consumers save time and money."
　　But analysts say it makes sense to offer a fast-delivery service for people who purchase items through Google, since rivals such as Amazon, Walmart.com and eBay (EBAY) have similar programs. "It could be attractive for retailers who advertise on Google," said Kerry Rice, who follows Internet business for Needham & Company. "It's another thing that a company could use to highlight their listing in Google's results."
　　It's unclear if Google will offer delivery service on a broad scale. Amazon has experimented with delivery lockers, but Mulpuru said the concept has yet to catch on. "These tech companies throw a lot of stuff against the wall, just to see what works," she added.

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So that you can be sure that the attire you select fits you well

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Beyonce inks $50-million deal with Pepsi

When Beyoncé makes her return to music at the top of next year, the multi-platinum will be armed with a major backer: Pepsi.

PepsiCo, the conglomerate best known for its soft drinks, announced it has inked a deal with the multi-platinum singer.

The deal — reportedly worth $50 million — is being touted as a “true creative and wide-ranging global collaboration.”

But what exactly does it mean?

Fans can expect Beyoncé, who has already appeared in five Pepsi campaigns since 2002, to be featured in a new TV spot for the soft drink. Her face will also be plastered on a limited-edition line of soda cans and bottles and her likeness will also be visible on in-store displays, promotions and advertising at Pepsi retailers — so get ready to see her practically everywhere in the new year.

More importantly, as previously reported, the singer will headline the Pepsi-sponsored halftime show at Super BowlXLVII in February.

Beyoncé’s Super Bowl performance is expected to be the launching pad for new music and Pepsi will play an integral role in the rollout for her upcoming project. Pepsi is expected to promote a 2013 tour from the singer.

The company also announced they would fund other creative projects of Beyoncé’s, whether they have any connection to the brand or not. The New York Times reports the bulk of the $50 million will go toward media placements and global promotions, with the remainder split roughly equally between the singer's fee and the fund to develop other Beyoncé-branded projects.

"Pepsi embraces creativity and understands that artists evolve," the singer said in a statement to the New York Times, who first reported the multi-year deal. "As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity."

Lindsay Lohan Refuses to Go to Rehab After Arrested in Nightclub Catfight

　　Lindsay Lohan has reportedly been urged to check into rehab following her arrest after she got into a physical altercation with another female in a NYC club. TMZ reports that her friends believe going to rehab might help her win her favor with the judge.
　　LiLo was recently hit with charges on two different cases. In New York, the Elizabeth Taylor of "Liz & Dick" was charged on third degree misdemeanor assault and is expected to appear in court face formal charges at a January 7 arraignment.
　　She was taken into custody a few days ago for the alleged offense. She was released from jail after being bailed out by her assistant Gavin Doyle. "@lindsaylohan after bailing you out last night I HOPE and PRAY you get the help you so desperately need," he tweeted. "We are ALL rooting for you."
　　As if facing an assault charge is not enough, LiLo was slapped with misdemeanors for resisting, obstructing, or delaying an officer in the course of their duties by giving false information to an officer who investigated a car accident involving her last summer. She's also cited for reckless driving.
　　Rumor has it, LiLo has been stressed out by her impending court dates and turns to alcohol to distract her worried mind. The "Herbie: Fully Loaded" actress is in danger of violating her probation stemming from a jewelry theft case involving her.
　　While her friends think seeking help for her drinking problem will help her avoid jail, LiLo reportedly has her own strategy to win her case against the alleged victim of her punch, Tiffany Mitchell. The star allegedly has hired a private investigator to look into the Psychic's life and dig up her dirt.

Google's New Acquisition Sure Makes It Seem Like It's Gunning For Amazon

　　Google has made an interesting new acquisition that suggests it may be attacking Amazon's shipping business.
　　It just bought BufferBox Inc, a Y Combinator startup, for an undisclosed sum. BufferBox is a kiosk that can be placed in local venues around the nation for self-service parcel pick-up. In other words, if BufferBox becomes popular, you could walk into your local CVS and pick up a package you ordered from an online merchant.
　　This is a product -- not a talent -- acquisition. BufferBox will continue operating within Google.
　　"We're going to keep doing BufferBox," Google engineering director Steve Woods told Financial Post. "We’re not going to go into great detail about our future plans, but we think there’s a real exciting space beyond this amazing start with boxes, and the idea of touching consumers as part of their end-to-end experience is something we’re going to explore together. I don’t think we would say even definitively what it’s going repair management software to be, but we’re going to do some great things together.”
　　BufferBox had plans to undercut even the cheapest shipping services and deliver packages to its kiosks for $3 or $4. (USPS costs about $5.25 per package. UPS and FedEx cost more.) It also planned to set up 100 kiosks around the Toronto area in 2013.
　　So, what does Google want with a shipping company?
　　The Economist has one idea.
　　"Google is experimenting with a service that would let folk find goods online, order them and have them delivered within a day for a modest fee," The Economist wrote this morning. "This seems similar to Amazon’s hugely successful 'Prime' service, which costs $79 a year to join in America. Rather than try to replicate the e-commerce giant’s extensive network of warehouses, Google is looking for partnerships with shipping companies and retailers instead. But if it is serious about taking on Amazon, it may ultimately have to buy a logistics firm. At $69 billion UPS has a market value less than a third of Google’s; it is valued at less than twice the search giant’s cash pile."
　　The Economist implies that Google could jump whole hog into fulfillment and logistics, and that it could becoming the back-end ecommerce delivery system for the world.
　　Of course, that is an entirely different business than the business Google is in right now. And it's not clear why Google would want to be in that business, especially with so many other promising opportunities to invest in.
　　So, what do you think Google wants with a startup like BufferBox? Is this really the beginning of a full-on shipping war between Google and Amazon?

Designers are drastically fixing their attention towards

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