It is not a hidden fact that consumers spend most of their time using social media, typically almost two and a half hours per day. Most of the time, social media is used for entertainment purposes, so why not make it beneficial? This thinking has allowed e-commerce trends to change tremendously over the years. The E-Commerce industry has entirely changed after being combined with social media.
With the advent of social commerce, what was once mere random scrolling on media applications like TikTok, Facebook, and Instagram has transformed into a potential revenue stream for business owners. By exploring the impact of the social commerce industry, this article delves into how it has revolutionized the buying process. It empowers business owners and marketers to directly and effectively connect with their audience, resulting in a shopping experience that is more personalized and interactive.
Understanding About Social Commerce?
Social commerce combines social networking with e-commerce, allowing users to purchase straight from their social media profiles. This simplified approach streamlines the buying experience, allowing consumers to connect with different companies and make purchases without leaving their preferred social networking channels.
Social commerce is beneficial for users because it offers a quick and convenient way to make purchases. Along with that, the sellers and marketers also take great advantage of this platform. The sales of the product greatly increase due to the fact that marketing and selling are going on together in the same place. This effect can be appreciated as 75% of the sellers have reported increased traffic after being exposed to social media. The benefits availed by the sellers include direct connection with the buyers and easy branding through social reviews, which are user-generated feedback and recommendations about the product or service.
A difference in sales between e-commerce and social commerce majorly lies in the fact that whenever a user visits an e-commerce website, he already has some products in mind. On the other hand, social commerce holds the power to sell products that customers wouldn’t usually consider buying.
Engagements In Social commerce
Since you are now aware of what social commerce is. It is now time to understand the target audience for social commerce and which people mainly engage through this platform.
If we look at the situation from a few years back, social commerce was being newly introduced. At that time, only newer generations were mainly using social platforms, while the older ones were still quite unaware. As the time frame has changed, we are able to observe that the older generations are also a part of social media and, hence, engaging widely in social commerce. One report even suggests that the use of social media among the age group 50 and above has nearly doubled. A recent study reveals that the use of social media among the 50 years of age and above has almost doubled.
Social media analytics and algorithms let us additionally identify our target market. We may deduce, for example, that a user is interested in health and wellness items if they often look for fitness-related information and like blogs on good nutrition. Their regular searches and likes can be monitored to determine which kinds of items they’ll be interested in. Moreover, brand endorsements, social media influencers, customer reviews, and connections also help to gain new customers.
Best Platforms For Social Commerce
Many social media platforms have now transformed into hubs of marketing and advertising. This change, also referred to as the turning of social media apps into socially commercial websites, has extended the corporate horizon. It has let companies directly sell their goods or services on these sites, therefore removing the need for consumers to visit several e-commerce websites. Some of the most popular social commerce platforms are as follows:
Instagram Shops
Instagram is a well-known social media platform with over 1.4 billion users. It allows businesses to tag various products on their posts and stories. By clicking on the specific product link, all the details related to it appear on the screen, including its price. Users can then opt whether to buy it or not.
Facebook Shop
Facebook is counted as one of the oldest social media platforms. Facebook shops are like a digital market where a separate shopping page can be created and run. By using Facebook shops, businessmen can create enhanced product descriptions, images, and catalogues to attract customers.
Users get an amazing customer experience by availing of facilities like featured products, seasonal launches, multiple collections, and bundles.
Facebook Marketplace
Facebook has a user base greater than almost every other social media platform. Because of the massive amount of public traffic on Facebook, it allows your product to reach multiple and diverse groups of people. It is estimated that Facebook shops have over 1 million global users. Along with its rich storefront features and data-gathering tools, a competitive e-commerce environment is generated.
Another reason the Facebook marketplace is the most favourite social commerce app is that it is highly community-based and allows peer-to-peer interactions. On this platform, people can buy and sell second-hand items, and earnings through ads and marketing also take place.
TikTok Shops
TikTok, the most widely used app among Gen Z, is also a competitive platform when it comes to social commerce. TikTok brands can market their products using short videography and clips. A noteworthy feature is the ability for consumers to consolidate products from multiple companies into a single cart and complete their purchase without leaving the app.
The Growth And Development Of Social Commerce
Social commerce began when social media platforms like Facebook and Instagram became popular for connecting with friends and sharing content.
Adding Shopping
Companies began utilizing social media to advertise items after realizing it might help them connect to consumers.
Platforms included “buy” buttons so users may make direct purchases from postings.
New Features
Instagram Checkout and shoppable posts let users purchase products without ever leaving the app.
Facebook launched Facebook Shops, letting businesses create online stores on Facebook and Instagram.
Influencer Power
Brands started working with social media influencers, individuals with a large following and influence on social media, to promote their products to a wider audience.
Often respected and trusted by their following, these influencers may greatly affect customer behaviour and boost sales.
Users began sharing their own photos and reviews of products, helping others decide what to buy.
Enhance Shopping Experience
Live shopping platforms let vendors communicate with users and present items in real time.
Augmented reality (AR) features let users try on products like makeup and clothes virtually.
Smart Shopping
Social media channels provide companies with social media analytic tools to better grasp consumer preferences and actions.
By use of data, companies might suggest items for which consumers are more inclined to purchase depending on past behaviour.
Latest Trends
Engaging in short movies or videos on platforms like TikTok helps with product discovery and sales. For example, a cosmetics company may produce a brief lesson video highlighting their new product to generate buzz and sales. This kind of material is a good tool for social commerce as it makes fast and interesting product presentations possible.
Social media is fostering community-based shopping, where users share recommendations and reviews with friends.
Benefits of Social Commerce
The following are the benefits of social commerce:
Easy Shopping And More Interaction
You can buy things directly from social media apps like Instagram and Facebook without going to another website.
Businesses can talk to customers directly through comments, likes, and messages, making shopping more personal.
Better Ads And Real Reviews
Social media lets businesses show ads to people who are more likely to be interested based on their likes and habits.
Customers can share their opinions and photos of products, helping others decide what to buy.
Trust Building And Useful Data
Seeing friends or influencers use a product on social media can make you trust the brand more. Shopping on social media fits naturally into what you already do online every day.
Most companies focus on customers’ demands. They look closely at their likes and dislikes and then implement social media strategies to fulfil clients’ requirements.
Wider Reach And Better Support
Social media is a platform that helps millions of people and businesses interact with or reach their target audience worldwide.
Customers can get quick help from businesses through social media.
Current Social Commerce Trends
With evolving commercial habits, social commerce trends have also transformed over the years. The following text highlights some recent trends in social commerce:
Meet And Greet Events
Social media and reality are two different worlds. In order to connect the two dots and build a trustworthy relationship between seller and customer, real-life meetups are essential.
Let’s take an example of the Pinterest-predicted pop-up event which took place in 2023. After the event happened in New York City, a rapid rise in shopping was observed.
Marketing Via Social Media Influencers
Social media celebrities influence the audience in an unbelievable way. With their huge following, one good review can boost your business for real. This is precisely the reason that marketing via social media influencers is a valuable trend followed by most social brands these days.
This scheme is especially good for newly launched businesses that can send PRs to the right influencers in order to make their place in the social commerce industry.
Involvement of AI
With the involvement of AI, easy product discovery and improved customer satisfaction rates have been achieved. The involvement of AI in social commerce can be understood by the following example of TikTok. TikTok is now experimenting with AI to launch a product recognition feature that makes recommendations for related or comparable products that are accessible on its online store.
Conclusion
Social commerce is changing how we shop by blending online shopping with social media and providing helpful social media marketing advice that companies can use. Now, you can buy things directly from platforms like Instagram and Facebook without leaving the app. This makes shopping more convenient and fun, and it helps businesses connect with more people in a natural way. As technology improves and our shopping habits change, social commerce will become even more critical, making online shopping more accessible and engaging.
FAQs
How is social commerce evolving?
Social commerce is evolving through online shopping and social media. The brands that are collaborating with influencers to promote their products are most likely to stand out in this evolving era.
What is the concept of social commerce?
Social commerce is like a branch of e-commerce that involves the usage of digital media to generate money for their business. It is being used very much nowadays.
How many types of social commerce are there?
There are seven types of social commerce:
- User review websites
- Group buying and daily deals
- Social network-driven sales
- Participatory commerce
- Picklist sites
- Platforms for peer-to-peer sales
- Course social shopping
Which best describes social commerce?
Social commerce is best described as selling services and products through digital media.
