In its second-largest acquisition, Amazon buys the company for $970 million.
E-commerce startup Friendgiftr’s technology lets social networkers send their friends retail and restaurant gift cards through five social media sites—Facebook, MySpace, iGoogle, Ning and Bebo.
E-commerce startup Friendgiftr has launched a service that lets online consumers send gift cards for retailers and merchants such as Gap, Pottery Barn, Barnes & Noble and Starbuck’s, through five social media sites-Facebook, MySpace, iGoogle, Ning and Bebo.
Using the application, social media users can buy or send gift cards, valued between $10 and $100, to friends and family. Regardless of the social network, the process is the same to make a purchase-a shopper selects both the card and the amount, enters the recipient’s name, e-mail and a personalized message, then he enters his payment method.
Friendgiftr uses the application programming interface, or API, for each social network, or it uses the platform that the social network sites created to host apps. For example, Friendgiftr uses Facebook’s API and can be accessed in several ways-by searching for "Friendgiftr" in the search bar; by going to the Applications link on the home page and typing in "Friendgiftr"; or by going to Friendgiftr`s fan page and clicking on "Install App."
Friendgiftr allows a gift card recipient to exchange the card she received for a card from any of the other merchants that the company offers for no charge.
Friendgiftr’s order fulfillment goes through a wholesaler who purchases the gift cards in bulk from each merchant. Friendgiftr then earns a percentage for each card sold.