Twitter (TWTR) Expects "Buy Now" Feature to Boost Revenues

Twitter Inc. TWTR is making the ‘Buy Now' button available to nationwide retailers, making online retailing easier than ever. The company has partnered with the three largest e-commerce platforms Demandware, Bigcommerce, and Shopify so that merchants who use these platforms can easily sell their merchandize on Twitter via a single tweet.

Twitter has also brought on board big retail brands like Best Buy Co., Inc. BBY and Pacific Sunwear of California Inc. PSUN. The partnerships will be powered by Stripe Relay.

 "The goal for all our commerce initiatives on Twitter is simple: make it as easy as possible for businesses to connect directly with, and sell to, customers on Twitter. With Buy Now, businesses can drive more conversions and remove much of the friction in the mobile purchasing process.

"Today, as we begin rolling out to a wider group of platforms and partners, people will have even more opportunities to discover and purchase products from the brands they love on Twitter," says Nathan Hubbard, VP of Commerce, on his blog post yesterday.

It's been almost a year since Twitter started testing Buy Now. Though it's still a U.S. only service, it will help Twitter to find newer ways to boost revenues amid the sluggish user growth rate.

Not just Twitter, other social media giants like Facebook, Inc. FB and Pinterest have developed their own "Buy Now" options to bring in more revenues. However, Twitter has refrained from providing any details on how the e-commerce business has fared over the past one year.

Twitter had earlier launched a feature, titled "Twitter Offers" that is visible to users in the form of a pop up, which they can redeem while shopping online using debit or credit cards.

Twitter is going through its roughest time since the company was founded in 2006. Its stagnating user base, inability to make profits and lack of stability at the top management level has wreaked havoc on its stock price. After losing about 26.4% so far in the year, the stock price is hovering around its IPO price of $26.

However, yesterday, share prices jumped over 5% after the media went abuzz with Jack Dorsey's name being considered for CEO. If Dorsey is named as the CEO, it would be his second innings at the helm.
 
Twitter at present is a Zacks Rank #3 (Hold) stock.

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