Over the past decade or so, as eCommerce has developed, it has also evolved, changed form, and created countless offshoots. One of these offshoots of the massive eCommerce boom is social commerce. Social commerce is currently an $89.4 billion business that is projected to reach $604.5 billion by 2027.
What is social commerce?
Social commerce is the practice of selling goods and services directly through social media so that social media users can click on your posts and finish the transaction without leaving the platform. Social commerce enables marketers to capitalize on their captive audience by integrating shopping capabilities into their postings.
This is a tremendous opportunity for retailers. Social commerce is providing both large and small firms with a new opportunity to make use of their laboriously acquired social media reach, much like social media leveled the playing field in marketing.
How social commerce works
Social commerce is a way to make money, increase brand awareness, increase customer loyalty and satisfaction, and retain customers. Social commerce is the practice of using social media platforms to sell products and services directly to consumers. It's a relatively new term that encompasses many different types of activities:
- Social media ads
- Direct links from social media posts or profiles to ecommerce sites/apps (e.g., Facebook buttons)
- Pages dedicated specifically for shopping (e.g., Pinterest Shop sections)
What Platforms Support Social Commerce?
What online communities does your target audience frequent? There is a good chance that at least one of these platforms provides social commerce capabilities where you can find your target market. These platforms include Amazon Live, Verint, Taggbox Commerce, Amazon, Amazon Live Video, and Creator.co, Instagram, Facebook, Pinterest, Snapchat, TikTok, WeChat, Verint, and Instagram.
Social Commerce Features
Social purchasing and social commerce are general, high-level concepts. Social media networks provide a wide range of functions and features that come under various categories. Some social platforms have been more successful than others at adding social shopping capabilities that allow marketers to profit from them.
Here are a few of the most well-liked social commerce tools available on the major social media platforms:
“Buy” Buttons
The "buy now" button was one of the first and most well-liked strategies for converting social media into a sales channel. The "buy" button functions as a call-to-action (CTA) and directs viewers to the brand's website to finish the sale on social media advertising or posts.
Shoppable Blog Posts & Articles
Brands and individuals may tag certain goods wherever they are in posts or "stories" thanks to shoppable posts and narratives. This feature helps advertisers to streamline the user experience and make it more fluid by allowing the entire purchasing transaction to take place within the social media app.
Plugins and Apps for Social Commerce
Some third parties introduced their plug-ins and apps to support social shopping while the major social networks experimented with how to best deploy social commerce for companies.
Soldsie is an illustration of a third-party app; it integrates with Facebook and Instagram and enables your followers to buy products simply by commenting on a post with the word "Sold." After users leave comments, the app handles the rest by sending them an email with an invoice so they can finish paying and confirming their order.
The benefits of Social Commerce
Not sure whether social commerce is suitable for your online store? Here are a few of social commerce's benefits to assist you in deciding whether to give it a try.
Social commerce facilitates audience expansion
Social networking websites have enormous user bases, particularly those that provide social commerce alternatives. This improves the possibility that your target market is actively searching for your products and services on the site. Utilizing social commerce options increases the likelihood that customers will complete a transaction by reducing friction and streamlining the buying process.
Social commerce assists in ROI tracking and improvement
You can use social commerce for ROI tracking and improvement. Social commerce offers the potential for a high return rate. If you want to get the most out of your social commerce strategy, monitoring your social media data is essential. Because the majority of the larger social media platforms include built-in analytics tools, you may assess your social commerce campaigns and make the necessary adjustments to get better outcomes.
Social Commerce boosts traffic & engagement
Social commerce can help you boost traffic and engagement. As a result of the ease and speed with which individuals may connect with your brand via social commerce, it may also aid increased audience engagement. This is vital because as your brand receives exposure to more and more potential clients, your sales and profits will improve (assuming that your conversion rate stays the same). In addition, it makes it easier for customers to share your content with others who may be interested in making a purchase.
Check out blog on Benefits of Using Big Data in Online Shopping
Social commerce enables shopping right where consumers are engaging with brands and each other, on social media.
Social commerce enables consumers to buy products and services directly from social media. It's different from the traditional model of discovery, which is an indirect way for consumers to discover products and services on social media. Social commerce enables you to sell directly through your Instagram feed or Facebook page, making it a great way either as a standalone business or as part of an existing retail operation.
Social commerce is not just a fad; it is a new way for customers to purchase and interact with your business directly from their favorite applications. It is logical for retailers to adopt social commerce to enhance sales, given that many consumers use social networking programs to research brands and products.
Now that you know the basics of how social commerce works, it's time to get started! But before that, it’s important that you automate and streamline your business workflows. So that when social commerce kicks in, your processes are already optimized. For that you can seek help from experts anytime. Just book a discovery call here.
