Discover how the Social Commerce Revolution is reshaping sales and engagement dynamics. Explore the synergy of integrated shopping experiences, bridging the gap between social interactions and seamless purchasing. Dive into the future of commerce today.
Everywhere you look, new social platforms seem to be popping up. These new companies are all vying for consumer attention and time, trying to get the best deal. Even the power players have been scrambling very hard for new ways to differentiate themselves from the pack. They are trying to do all of this and more to prove their value to their users. The reason is that they need the advertiser to shower them with money to keep their business up and running.
Pursuing advertisement-related dollars and user growth has powered the meteoric rise of social media-generated business. The traditional role social commerce and media generally play in the marketing mix basically consists of showing your brand and goods on the platform and connecting to your website; now, buying directly on social media is possible.
But that’s still not the entire story: social media can drive commerce in more creative ways than ever in the past. Brand discovery is happening more and more often via social platforms, especially for Gen Z. Thus, whether or not the transaction takes place there on Amazon, or in a brick-and-mortar store. A consumer could interact with an internet personality on a platform. Only then go around to find out more about a good or service and purchase on the company’s site.
We look at a much bigger definition of social commerce: the part social plays in the commerce ecosystem as a whole. Taking a more holistic view makes it clear how greater innovation is happening.
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Not only is social commerce a wonderful way to build relationships with future customers and deliver a more seamless integrated shopping experience, but it also cuts down the sales funnel. This gives your brand a big upper hand when driving conversions.
So how can you set your company up for success in the ever-changing social commerce area? Let’s look at the current trends changing social commerce and pushing new developments, then break down the pros and cons.
Social commerce has become a game-changer for both buyers and sellers, providing a more engaging and seamless integrated shopping experience. Let us see some tips for developing a successful social commerce strategy and discuss common challenges and how to overcome them.
Introduction to Social Commerce
In recent years, social media has evolved from a socializing platform to a hub for shopping. Social commerce is the crossover of e-commerce and social media, creating a seamless, integrated shopping experience for customers. With social commerce, users can browse, purchase, and share products within the social media platform without the need to leave the app. Social commerce has transformed the way people shop online by making it more convenient, social, and personalized.
What is Social Commerce?
The rise of the era of Social commerce is the process of buying and selling products on social media platforms. It involves the use of social media to showcase products, connect with customers, and facilitate transactions. Social commerce is not just limited to e-commerce websites; it can also take place on social media platforms such as TikTok, Facebook, and Pinterest. Social commerce allows buyers to make purchases directly from the social media platform without the need to visit a separate website or e-commerce store.
Let’s see some statistics so we can have more insight into the effect that Social commerce has on a market:
- In 2020, the social market in Europe was valued at 39.4 billion euros and is expected to reach 58.8 billion euros by 2024. (Source: Statista)
- The United Kingdom dominates the social market in Europe, with a projected value of 20.9 billion euros by 2024. (Source: Statista)
- In 2020, 31% of European consumers purchased social media, up from 20% in 2019. (Source: KPMG)
- Facebook is the most loved social media place for social in Europe, with 86% of consumers using it to discover new products. (Source: Hootsuite)
- Instagram is the second most popular platform for social in Europe, with 45% of consumers using it to discover new products. (Source: Hootsuite)
- In a survey of European consumers, 42% stated that they would purchase products directly through social media if the option was available. (Source: PwC). While 84% of US online shoppers use social media to search for products. (source: Bizrate Insights)
- 30% of Gen Z and Millennials make purchases through social media. (Source: BigCommerce)
- Social media referrals have the highest order conversion rates compared to other marketing channels. (Source: Shopify)
- A study by Adobe found that social media drove $3.3 billion in retail sales in 2019.
The Rise of Social Integrated Shopping Experiences and Social Retail
Social shopping and social retail are two concepts that have emerged with the rise of social. Social shopping involves the use of social media to discover and purchase products. On the other hand, social retail involves integrating social media and physical retail stores. Social retail provides customers with a more personalized and integrated shopping experience by leveraging social media to showcase products, engage with customers, and facilitate transactions.
Advantages of Social Commerce for Buyers and Sellers
Social offers several advantages for both buyers and sellers. For buyers, social commerce provides a more convenient and engaging integrated shopping experience. Buyers can browse and purchase products without leaving the social media platform. Social also allows buyers to interact with sellers and other customers, providing a more social and personalized shopping experience.
The rise of this social provides sellers with a new avenue to reach customers and increase sales. Digital media companies have a massive user base, providing sellers with a vast audience to showcase their product, and also allowing sellers to engage with customers. This helps build relationships and provide personalized customer service. Additionally, social provides sellers with valuable data and insights into customer behavior and preferences. These insights allow them to tailor their products and marketing strategies accordingly.
Social Commerce Platform: How it Works
Social platforms facilitate the integration of social media and e-commerce. These platforms allow sellers to showcase their products on social media platforms and facilitate transactions without the need for buyers to leave the app. Platforms provide features such as product catalogs, shopping carts, and payment gateways, making it easy for sellers to manage their online stores. Platforms also provide data and analytics tools to help sellers track their performance and optimize their strategies.
Blackhatwing platform and Social Commerce
One example of how e-commerce platforms utilize integrating social media channels is Blackhatwing, an e-commerce platform that provides various features to help businesses increase their online sales.
For example, Blackhatwing allows businesses to create shoppable posts on Instagram and Facebook, which means that customers can purchase products directly from a post on social media without having to leave the platform. This feature is super useful for businesses with a strong social media presence and who want to leverage it to increase their sales.
Moreover, Blackhatwing also enables businesses to display customer-generated content (CGC) on their website. This can include customer social media posts featuring the business’s products, reviews, and ratings. By showcasing CGC on their website, businesses can build trust with would-be customers. This is so they can see real-life examples of how other customers have used and enjoyed the products.
Examples of Social Commerce: Success Stories
Several companies have successfully leveraged to increase sales and reach new customers. In 2018, Shopify said that it was connecting with Instagram to allow its merchants to sell products directly on the social media platform. The integration allowed merchants to tag their products in their Instagram posts, making it quick for followers to discover and purchase them. When a user hits on the tagged product, they are taken to the merchant’s online store to complete the purchase.