Social media was first born in 1997, with the publication of SixDegrees.com, a basic site that enabled users to set up a profile page, create connection lists, and send messages within these networks. After amassing one million users, it was bought for $125 million and ultimately closed down in 2000. Since then, numerous social platforms have come and gone, including the very popular Myspace in 2003, while others have stayed and continued to thrive – think Facebook, LinkedIn, Flickr, YouTube, Reddit, Twitter, Instagram, Pinterest, Snapchat, TikTok, Tumblr, and many others.
The impact of social media is not limited to personal connection. Since its arrival into the digital landscape, social platforms have dramatically grown and evolved, and completely changed the way we connect, share information, and engage with brands.
Likewise, e-commerce has also transformed the way we shop by making online purchases more convenient and accessible. E-commerce transactions occur on a website or a branded app, usually built around platforms like Shopify. From one’s desktop, laptop, tablet, or smartphone, it could not be easier for consumers to find and purchase exactly what they want, from anywhere in the world, with just the click of a mouse or the swipe of a fingertip.
The marriage of social media and e-commerce has transformed both to create what’s known as social commerce.
And brands need to keep up.
What is Social Commerce?
Social commerce is an e-commerce subset and refers to the use of social media platforms to market and actively sell products and services to social media audiences when they are active on these. Enabling people to complete purchases without leaving the social media app, it works through the integration of e-commerce functions into social media platforms.
Social platforms including Facebook, Instagram, and Pinterest, in particular, have introduced features that allow users to browse, discover, and buy products directly within the social media ecosystem. The social platforms thus become virtual shopfronts. There is no need for users to click through to brand websites to complete the purchase process – they can instead select items and complete payment processes within the social platform. It is fast, convenient, interactive, and a very effective way to capture transactions while target audiences are amenable to buying.
Did You Know?
- According to Shopify[1], by 2026 the value of social commerce globally will reach US$2.9 Trillion.
- The typical social media user spends 15% of their waking hours on social platforms[2].
- Millennial and Gen Z audiences are most likely to have purchased via social channels to date[3].
- In 2021, Facebook was the most popular social platform used for social commerce[4]. This was followed by (in order) Instagram, YouTube, TikTok, Snapchat, and Twitter.
- 71% of worldwide Facebook users have purchased from the platform[5].
- Half of Instagram’s users avail the platform to discover new brands, services[6], and products and 44% of users shop weekly on the platform[7].
- More than 400 million people[8] (mostly women) use Pinterest monthly to get ideas and research products and most searches are unbranded – affording brands a great way to reach potential new customers.
Social commerce and social selling are not the same thing. Social selling refers to relationship building to later make a sale – this can occur on- or offline and on or off social platforms.
Social commerce offers an effective channel for social media audiences to:
- Discover brands
- Research products and services
- Select items and complete the checkout process
- Interact with customer service/support
Social commerce is a simple, cost-effective way for brands and businesses to promote and sell their products and services – and this becomes even more effective with the use of Influencer Marketing.
The Power of Influencer Marketing
Social media influencers are private (non-commercial) social profile holders who have built substantial followings on social media. As such, they can become powerful brand ambassadors and product endorsers – the key to their success is in combining the right influencer with the right brand/product and to suit the target audience of that brand. Their authenticity has proven to be an effective way to drive sales for the brands they partner with.
For example, 70% of American internet users regularly watch live streams from influencers and almost 30% are likely to purchase recommended products in response to doing so[9].
Well-orchestrated influencer marketing is a great way to generate social proof, build trust, and showcase your brand’s authenticity and credibility. As such, influencer marketing goes hand-in-hand with social commerce.
What are Shoppable Posts?
Currently, four social media apps have built-in features for native commerce:
- TikTok
The social commerce sales funnel comprises three main parts:
- Content is posted by brands/brand ambassadors/influencers on Facebook, Instagram, Pinterest, TikTok, or Blogs to drive product discovery and awareness, and inspire audiences.
- This will ideally lead to user engagement, information searches, shares, and referrals. It is also in the middle of the sales funnel that Facebook Ads and retargeted advertising occur.
- When social commerce works effectively, the bottom of the sales funnel will elicit active conversions, purchasing, and flash sales.
What is a shoppable post? This is a social media post that allows products to be listed for sale. Users scrolling their feed can find, tap on, and purchase the product directly from within the social app (Facebook, Instagram TikTok, etc). It could be a regular text post, an image, a video, a blog, a sponsored post, or any other type of social content.
Examples include:
Through shoppable posts, typical social media experiences become enticing shopping opportunities.
The Future of Social Commerce
Social commerce is predicted to be the future of online shopping for many brands and consumers. Marketers anticipate that greater innovations in social commerce will emerge in the foreseeable future, including but not limited to these three examples:
- More brands will break through the trust gap – with social commerce having already exploded in China, it has yet to do so to the same extent in North America, Europe, and Australia. This, however, is set to change, as these audiences come to trust vendors, social networks, and associated payment systems more.
- VR or virtual reality creates immersive spaces for users to interact with digital worlds. This can help retailers better understand what consumers seek and thereby help them make more informed buying decisions. For example, IKEA has a virtual showroom that allows visitors to explore options, configure furnishings, and customise in real time to see the result before completing their purchase.
- Live shopping events on social media enable bands to showcase their products in real time through live streams, and audiences can purchase products directly from the live feed without leaving the app.
Social commerce is the future for many brands and is a great way to:
- Reach larger target audiences
- Enable seamless, streamlined shopping experiences
- Capture sales on the spot from social media users
- Gather valuable audience data
- Avail the benefits of genuine social proof in the form of reviews, comments, likes, shares, and follows
- Receive and respond to customer feedback
- Incorporate tools like live streaming into the shopping experience
Could your business benefit from implementing social commerce for your customers?
Talk to a Digital Strategist!
There is so much more to learn about social commerce – and Dot-to-Dot Digital can help! Simply get in touch with us now to have a chat about your business, your vision, and how marrying social media with e-commerce can help you grow and thrive in the modern marketplace. We have the experience, skills, and insight to help you take your business to the next level, get ahead of your direct competitors, and succeed online – and have fun whilst
[1] https://www.shopify.com/au/enterprise/social-commerce-trends#:~:text=Social%20commerce%20is%20the%20use,Discover%20brands
[2] https://datareportal.com/social-media-users
[3] https://www.statista.com/statistics/1254678/share-social-buyers-united-states-age-group/
[4] https://www.statista.com/statistics/1226380/most-popular-social-media-platforms-for-making-purchases-united-states/
[5] https://www.insiderintelligence.com/chart/254951/How-Often-Do-Social-Media-Shoppers-Worldwide-Buy-Products-on-Select-Social-Media-Platforms-of-respondents-Jan-2022
[6] https://www.instagram.com/p/CV5vk28MIzY/
[7] https://www.instagram.com/p/CWbLh7wsWxK/
[8] https://business.pinterest.com/en-gb/audience/
[9] https://www.statista.com/statistics/1261488/share-internet-users-watching-buying-from-livestream-influencers/
