The barrier between social media and e-commerce is blurring more and more, resulting in a phenomenon known as social commerce. The sheer amount of time people spent on social media apps, particularly among younger generations, has positioned social commerce as the undeniable market breakout trend for e-commerce in the coming years.
Gen Zs are the second-fastest adopters of social commerce. 43% of them have purchased from a social media platform. It becomes easier for individuals to purchase directly on social media rather than leaving the app and going to an online store.
Does this mean that e-commerce is losing its touch? As a business owner, does it mean that you should leave e-commerce and pursue social commerce?
- What is Social Commerce?
- What is E-commerce?
- Why Should You Invest in Social Commerce?
- Social Media Platforms that Accepts Social Commerce
It is the process of selling products or services directly on social media platforms. There is no need to leave the app. Everything from researching to check out the customer gets to do so on a social media platform.
There are only three social media platforms that allow people to shop; Instagram, Facebook, and Pinterest.
The perks of shopping on social media are that you get to shop and then continue what you are doing.
But what makes social commerce different from e-commerce?
What is E-commerce?
E-commerce is a shopping process that involves visiting a website or branded app. It is a transaction conducted online, including internet banking, auctions, payment gateways, online ticketing, and more.
Both online selling on a website and social media encompasses transactions on the internet.
E-commerce is an excellent way to shop online, but as people want convenience, shopping on social media is taking over e-commerce. So, as a business owner, using both platforms can offer plenty of advantages.
Why Should You Invest in Social Commerce?
It Makes Shopping a Social Experience
Unlike E-commerce, when users shop on social media, they have to interact actively with the seller or sales team. Also, they can consult with friends, colleagues, and family when they want to buy something on social media.
Growing social media profiles can increase your conversion rate. If businesses provide appealing and engaging content, the result is higher engagement and reach. If you post daily with content that adds value to your target audience, people will see you and soon recommend your brand to others.
Social media shopping can connect people to businesses. Your customers can promote your business by recommending your brand to others. In return, it increases engagement, traffic to your website, and conversion rate.
Increases Search Engine Ranking
Although the exact amount of how social media can push your website or content on the search engine is not clear. But, it has been proven that it has a direct effect.
The more people share your content or website on social media, the more reach they get. Therefore, it increases traffic and its position on search engines.
Content or websites shared on social media get more likes, comments, and shares that reach a larger audience.
Social media shops remove barriers or the need to go through a third-party app or website to purchase a product. Shoppers can click on the item they want and buy it on the platform right there and then.
Instead of going to another site or prolonging the buying journey, social media shopping will reduce cart abandonment. It will let the customer not think twice when purchasing the product.
Increase the Number of the Audience
Social media is one of the fastest-growing internet activities. Every day there are thousands of new accounts being made. Even active social media users reached billions in a day. That’s how powerful social media is.
With its growing market, businesses utilizing social media selling can reach out to plenty of customers as possible. Selling your product on Instagram can help others instantly see your business, and they can either buy or recommend you to others.
Build Loyal Customers
People trust people when it comes to purchasing a product. Therefore, they check on reviews and ratings on social media pages. Satisfy your previous and current customers to get the best and most positive reviews on your social media accounts.
Use social media to build a relationship with your audience. Show them how your brand can be one that they can trust.
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Social commerce makes it easy for customers to spend their money. Once they have seen something on your account and read about the positive comments, they instantly buy your product.
According to a study conducted by Shopify, social media can influence the average order value (AOV)Their study found out that Polyvore, Instagram, Pinterest, and Facebook are the top five account with the highest AOV.
Get Recommended Faster
Unlike e-commerce, users can easily share their content and comments with others on their social media account. People can read about your business and everything about it instantly.
With direct social media selling, you can gain popularity and customers for free. By answering your customers’ inquiries and negative feedback professionally, and solving problems immediately, customers can see that you care for them.
With outstanding customer service, people will share you with others. You get recommended to their friends, family, colleagues, and followers.
Accommodates Mobile Shoppers
Social commerce can accommodate the increasing number of mobile users. Since most people use their smartphones to check their social media account, selling on social media can make it possible to shop on the go.
Mobile devices are handy, and it makes shopping easier because people can check on products faster. Since 3.92 billion social media users access their accounts on a mobile device, you can reach more customers with social platforms.
Not all social media platforms can be social commerce. There are only limited platforms that give businesses the freedom to sell directly on their platform.
These three social platforms where you can sell directly are Instagram, Pinterest, and Facebook. Let’s get to know how to sell on these platforms.
Facebook is more than a place to enjoy a chat with your family and friends. It’s more than a place for creating a page for a business. Facebook now accepts direct selling on their platform, and we are not talking about the marketplace on Facebook.
Selling on Facebook is centred on Facebook Stores, which is accessible through pages of businesses.
Businesses can streamline their e-commerce shop on Facebook. Business owners can use automated integration tools to upload products from their online stores.
Stores will showcase limited or selected products only, not the entire content of the shop.
Products uploaded can be tagged on videos or posts, so buyers can click on it to shop directly for the item they want.
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There is no doubt that people will be interested in purchasing a product with plenty of aesthetically looking images.
Pinterest has the “Shopping Ads” and “Product Pins” on its platform. Businesses need to create a business account first. Next, they can link the catalogue of products on Pinterest. Also, the stock level and price are shown below the image of the product.
According to Pinterest, 80% of their users have purchased on their platform.
60% of people discover new products on Instagram. That’s why businesses using Instagram gain more customers due to exposure to their brand.
Companies can include links to their products when they post or share on their stories.
However, this feature is not available in all countries. For English-speaking countries, they are allowed to avail this feature. It has criteria to meet before businesses can sell on Instagram.
All retailers need to link their business profile to their catalogue, then share their collection on their posts or stories.
Customers who click on the shopping tags will be directed to another mobile page with prices and details. There they can purchase the item they want.
Even though social commerce is in its initial stage, social platforms and businesses have seen how people engage with this form of shopping experience. With the help of social commerce, it boosts the e-commerce conversion rate. Both online shopping platforms need to work hand in hand to help businesses grow rapidly, get more sales, and build loyal customers.
In Yeeply, we have a long experience in creating e-commerce platforms. Moreover, our experts master all the new technologies of this field. If you wanna know more about this extremely important source of business, tell us your needs. We will be happy to help you!
AUTHOR BIO: VANESSA VENUGOPAL. Vanessa Venugopal is a passionate content writer. With four years of experience, she mastered the art of writing in various styles and topics. She is currently writing for Softvire Australia and Softvire New Zealand.