Social commerce refers to selling products and services directly within social media platforms. Brands leverage popular platforms like Instagram, Facebook, Snapchat, and Twitter to promote and market their offerings. These social platforms have seamlessly integrated into consumers' daily lives, captivating users with relatable content and often keeping them engaged for extended periods.
The Social Commerce model capitalizes on this robust user engagement, elevating social media from its traditional role in top-of-the-funnel marketing to encourage users to purchase without leaving their preferred apps. According to the Social Media Investment Report, 91% of executives acknowledge that social commerce increasingly contributes to their marketing revenue. In comparison, an impressive 85% anticipate that social data will emerge as a primary source of business intelligence.
Now, let's delve into why brands should seriously consider embracing social media platforms as sales channels:
Though they all fall within the realm of online selling, social commerce, quick commerce (QCommerce), and eCommerce are distinct concepts.
eCommerce is online shopping through a retailer or brand's website or app. Customers can access these platforms via desktop or mobile devices, and the sales process typically follows a similar funnel. Brands and retailers employ top-of-the-funnel strategies like social media content, digital ads, and various marketing techniques to entice customers to visit their online stores. eCommerce encompasses three primary business models: Business-to-Business (B2B) examples include Alibaba, Amazon Business, and eWorldTrade; Business-to-Consumer (B2C) includes websites like Amazon, Rakuten, and Zalando; while Consumer-to-Consumer (C2C) platforms encompass eBay and Etsy.
Quick Commerce often called QCommerce, denotes eCommerce enterprises offering rapid delivery, sometimes within hours or minutes. While it is occasionally used interchangeably with on-demand or instant commerce, quick commerce has long existed in the food industry. It has gained prominence due to evolving consumer preferences for swift grocery and FMCG (Fast-Moving Consumer Goods) deliveries.
Social commerce takes a different approach by bringing the store directly to the customer, eliminating the need to redirect customers to an external online store. This streamlines the purchasing process, enabling customers to complete transactions through social media platforms. This approach creates a seamless and frictionless buying journey for customers, and it's particularly advantageous because social media platforms are mobile-friendly, catering to the growing number of customers accessing the internet via mobile devices.
Coined by Yahoo! in 2005, 'social commerce' encompasses collaborative shopping features like user ratings, shared pick lists, and user-generated content. As social media networks gained momentum throughout the 2000s and 2010s, coinciding with eCommerce's rise, customers and merchants swiftly grasped the advantages of conducting buying and selling activities on these platforms. Social media channels have evolved beyond mere showcases for brands; they have transformed into virtual storefronts and extensions of a company's website or physical stores, fully capable of facilitating the entire buying experience.
Social media platforms have a vested interest in keeping their users engaged for as long as possible, as extended user interaction enhances their capacity to display ads—a primary source of revenue. With millions of active users, these platforms wield significant influence, offering companies and individuals opportunities to build their brands, engage with consumers, and provide post-sales support. Here are the foremost social commerce platforms:
Facebook: Facebook seized the commercial opportunity by introducing Facebook Shops, enabling vendors to advertise and sell directly on the platform. By seamlessly integrating social commerce with shopping, users can smoothly purchase products. Facebook Shops offer a user-friendly experience, allowing customers to review products and receive recommendations from trusted contacts. Post-purchase, customers can interact directly with the merchant's customer service department.
Instagram: A staggering 60% of people discover new products on Instagram. As a subsidiary of Facebook, Instagram facilitates in-app shopping and manages transactions within the app itself. Users on Instagram often seek to emulate trends and styles from their favorite influencers, making in-app purchasing a natural fit. Instagram leverages its visually rich imagery and videos, allowing businesses to sell products and ideas.
TikTok: Shopify joined forces with TikTok to introduce shopping and boost sales among TikTok's youthful and ever-growing audience. Through TikTok for Business Ads Manager, brands and merchants can create in-feed video content tailored to their product offerings. This collaboration empowers Shopify merchants to tap into the expansive TikTok audience.
Snapchat: Snapchat recently launched Brand profiles, enabling users to browse a merchant's products and make in-app purchases. Shopify also powers this immersive experience. Merchants can establish Brand Profiles or Native Stores that facilitate in-app purchases.
Pinterest: Pinterest primarily revolves around images, with users creating boards dedicated to various interests such as wedding accessories, home decor, and fashion trends. While Pinterest doesn't offer social commerce globally, it allows business accounts to create 'Product Pins' featured in the brand's Pinterest shop. Although only U.S. customers can complete purchases within the app, Pinterest remains relevant as 89% of its users seek shopping inspiration.
These top social commerce platforms offer diverse avenues for brand promotion, product discovery, and seamless shopping experiences, catering to the ever-evolving landscape of online consumer engagement.
If your target audience falls within the 18-to-34 age bracket, chances are they're actively engaged on social media platforms ready to shop while scrolling. According to Sprout Social, 68% of consumers have made direct purchases through social media, and 98% plan to make at least one purchase via social or influencer commerce this year. Selling on social media enables direct sales and elevates brand visibility. The power of influencer marketing, mainly through micro-influencers, has gained prominence as customers increasingly seek authenticity over celebrity endorsements.
Online reviews hold significant sway, with 90% of online shoppers indicating that they consult reviews before purchasing. To harness the power of social proof, consider these strategies:
Solicit Reviews: Engage with customers through automated follow-up emails or social media messages once their product has been delivered. Please encourage them to share their experiences through reviews.
Incentivize Reviews: Offer incentives, such as contests, to incentivize previous customers to provide feedback and share their experiences. Building a collection of reviews is essential for cultivating a positive online reputation.
Leverage Visual Testimonials: Request customers to create concise product review videos that can be creatively shared on your social media channels. These videos add authenticity to your brand.
Showcase User-Generated Content: Share user-generated content that reflects positively on your brand. This might include customer photos, testimonials, or endorsements.
Create Comment Carousels: Develop carousels featuring positive comments from satisfied customers. Highlighting these endorsements on your social platforms can bolster your brand's credibility.
Host Live Q&A Sessions: Arrange live video sessions where delighted customers can share their experiences and interact with potential buyers in real time. These sessions create an interactive and trustworthy space for prospective customers.
Conventional eCommerce often entails a multi-step process, commencing with ad displays on social media platforms and redirecting customers to the business website to finalize their purchases. This conventional route typically involves account creation and manual entry of credit card information and delivery details. In contrast, social commerce offers a simplified three-step process: find, click, and buy. This streamlined approach significantly reduces friction in the buying journey, enhancing convenience for consumers.
While social commerce continues to gain momentum, it has its challenges, particularly concerning the proliferation of counterfeit products. Counterfeiting has found its way into social media, becoming a concerning and often under-reported issue for brands and merchants. Implementing a counterfeit detection solution is imperative to combat this threat, enabling brands to identify and remove fake and unauthorized products. Cutting-edge technologies such as Social Commerce Data Scraping and image recognition play a vital role in counterfeit detection, helping uncover counterfeit logos and discrepancies. By eliminating counterfeit products, brands can safeguard customer loyalty and protect their financial interests.
One real-world success story is the collaboration between Actowiz Solutions and Classic Accessories, a prominent manufacturer of high-quality furnishings and accessories. Together, they successfully identified counterfeit products across various retail marketplace websites, saving 22 hours per week that would have otherwise been spent on manual audits. You can delve into the entire case study here.
If you are a brand or retailer concerned about the menace of counterfeits, we invite you to sign up for a demo to Scrape Social commerce Data. Discover how we can assist you in tracking, identifying, and eliminating counterfeit products, Ecommerce Data Collection, securing your brand's reputation and consumer trust.
You can also reach us for all your mobile app scraping, instant data scraper and web scraping service services requirements.
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