Retailers Opt for Free Facebook Tools Over Advertisements

With its IPO out of the way, attention has turned to how Facebook will make money to appease its new shareholders. Many retailers are using the free tools available on Facebook rather than paying to advertise on the site. While retailers are very happy with the returns they're seeing from Facebook, many are doing so for free. A prime example is luxury retailer Melrose.com, which has seen its sales rise 25 percent over the last two years. Melrose.com spent just $1,500 on Facebook ads in that time, with most of its activity focused on managing its (free) page.