27 billion dollars! That is how much money social commerce brought in in 2020 in the U.S. alone. In recent research on how users interact with companies on social media, one of the interaction types was around purchasing.
For e-commerce companies with a presence on social media, there are really two ways for users to make a purchase, and that’s social selling or social commerce.
Social commerce refers to promoting and selling products and services through social networking sites like Facebook, Instagram, Pinterest, Twitter, and so on.
Nowadays we spend so much time on our various social platforms that it makes sense that as users we are given the ability to purchase from within these apps. in fact, the average daily social media use of internet users worldwide totals about 145 minutes per day. This is completely huge! In this article, we will take a deep dive into what social commerce refers to and how your brand can thrive.
The Definition of Social Commerce
Social commerce is the ability to purchase a product or service from a social media platform like Facebook, Instagram, or Twitter. Social commerce assists and allows users to make a purchase on social media platforms. This offering is definitely expanding and aims to offer a seamless experience where users can find and purchase something without switching channels. Social commerce is expanding, but not all users are comfortable with it yet.
Remember, it takes time for users to change their mental models of what something is or offers. So don’t limit yourself by focusing primarily on social commerce.
Social commerce refers to promoting and selling products and services through social networking sites like Facebook, Instagram, Pinterest, Twitter, and so on. Now the concept of social commerce was first introduced by Yahoo back in 2005 with the launch of Shoposphere.
Now, Shoposphere was a platform where people could create pick lists or lists of items. Other users could then look through these pick lists and discover new items, leave feedback, start discussions, and save these pick lists.
Social commerce has evolved a lot since 2005. It is now something that enables buyers to purchase items either directly from social networking sites or by leading buyers back to the company or the business’s website, and they can purchase the items from there.
Why Should You Engage in Social Commerce?
think about it: whenever somebody’s going to purchase something, they’re most likely going to ask their friends, their colleagues, or their family for recommendations and advice. Engaging in social commerce is giving businesses the opportunity to engage with buyers in the same place where they’re asking for and receiving these recommendations.
How does social commerce work? An example of engaging in social commerce would be posting images of your products in stories or on your feed and allowing customers to comment on them, share these products with their friends, ask questions, and engage with your company.
And you would measure these campaigns by checking out how many likes and how many shares they’ve got. Social commerce is only going to grow, and by the end of 2024, it’s estimated to reach over 50 billion dollars in sales that are directly from social commerce alone. So, make sure you’re looking up how to engage in social commerce so you can reach the most buyers possible!
Social Commerce Examples
If you are thinking about leveraging this type of marketing avenue, here are a few examples to consider:
Check out capabilities
One of the best examples of social commerce is the ability to click on a product and checkout right from within a social media site. For instance, if you are buying shoes on Instagram, you can choose the size and the color and then proceed to payment right from within the platform. You’ll then receive notifications for shipping details and tracking without ever actually leading the app.
Plugins and Apps
Commerce is still growing, and with it so are third-party apps and plugins. These also allow for a seamless process for the end user. Apps and plugins are also getting more sophisticated, allowing companies to increase both brand awareness and sales. It’s all about connectivity. For instance, when you make a purchase on Facebook, your friends will see it on their news feeds. They too might consider what you’ve purchased and then follow suit.
Shoppable Ads
This type of social commerce is currently available on Instagram and Snapchat. These allow you to tag products in a sponsored post. They also allow businesses to collect end-user data on which ads convert prospects into customers again. These types of features are still growing, and it’s likely you’ll see them on other social platforms popping up in the near future.
Chatbot Checkouts
Most of us have had the experience and pleasure of chatting with a chatbot at least once or another. Now you can find these on social platforms as a means of helping you through the purchase process. In Facebook, for instance, if you engage with a chatbot, you’ll be then taken to the Messenger feature to banter.
What’s interesting about these bots is that as you continue chatting, you’ll receive better, more customized deals. So although it’s still a little creepy, it is quite helpful for mobile users who want to find and purchase products. Again, chatbots are becoming more sophisticated.
how do you go about creating your social commerce strategy?
Before you can get started, consider your brand experience and target market. Now when customers make a purchase online, do they need additional information that might be housed on your website? For instance, do they also have a lot of questions about your product or service? This will determine whether you give them a one-click option or something a little more intricate.
Also, consider which platforms are best suited to your product or service: are your customers on Facebook but not on Snapchat?
Make sure you focus your energy on the social platforms that your customers congregate on, and finally, be sure to focus on the best-suited products and services for social commerce sites. You may have to do some A-B testing to determine this; some may work better than others, so direct your energy to the area’s most profitable.
Now, having said all of this, many users are still a little bit skeptical of buying directly from within social apps. People are acutely aware that platforms have an algorithm that might customize what they see if they google running shoes; for instance, then suddenly every social platform they use suggests different types of running shoes.
This can be somewhat irritating to some people, so don’t forget to build brand loyalty and trust. This can be done with other types of messaging in tandem with your ads. Also, remember that social media is a two-way dialogue. So you need to keep engaging with your it’s all a happy balance, but if you can find it, then you have a winning combination.
Bottom-Line
Developing smooth, interesting, and customized shopping experiences that connect with customers where they already spend their time—on social media—is the key to the future of retail. By combining social media with e-commerce, social commerce enables firms to take advantage of real-time consumer interactions, social proof, and rapid recommendations.
Social commerce is becoming a vital tool for organizations hoping to succeed as it develops, incorporating features like AI-driven product suggestions, AR/VR try-ons, and participatory live streaming.
In order to take advantage of this change, businesses must concentrate on establishing credibility, customizing their strategy for certain platforms and target markets, and providing captivating, interactive experiences that not only increase sales but also cultivate enduring client loyalty. Those who adopt these tactics will be in a strong position to prosper in this socially conscious era of retail.
The future of buying is being quickly shaped by social commerce, which allows users to make direct purchases via social networking platforms. By 2024, it is predicted that U.S. sales will total over $50 billion. With capabilities like shoppable advertisements, in-app checkouts, and chatbot support, this channel offers a distinctive setting where businesses can interact with consumers directly, take advantage of social proof, and offer frictionless purchasing experiences.
Brands must choose platforms that fit their target market, employ captivating, trust-building techniques, and concentrate on items that are ideal for social shopping if they want to be successful. Brands may prosper in the current digital environment by embracing social commerce.