A quick overview of Social Commerce, a developing digital trend that brands are using in innovative ways to engage the consumers in buying products and services through different social networks.
3. What Is Social Commerce?
• Social commerce is an activity of selling products via
different social networks, like Instagram, Facebook,
TikTok, etc that allow eCommerce behavior for their
users.
• Social commerce has been in the market for some time
now but over the years, brands have become savvier to
use this option for selling their products.
• It has become a convenient option for users to shop on
these apps since they can view the collection, research,
and buy an item without switching over multiple apps.
4. What’s Working for Brands?
• The concept of FOMO (fear of missing out) is what
the brands are taking advantage of and initiating
direct consumer selling concepts.
• “Swipe Up To Purchase” and “Story Link in Bio” have
become popular call to action phases pushing users
to buy the product or service.
5. Platforms That Use Social Commerce
Initiated facebook Shops to help small and medium business.
The culture of influencers makes this platform one of the strongest platform
in the market.
Know for its image sourcing platform; users can create multiple mood boards
under any category, which acts as a discovery platform for products and
brands.
A least popular platform but the platform still offers a high engagement
when creating social commerce strategy.
Rapidly growing video sharing platform.
6. Growth and Influence
Image Source: Insider Intelligence
• Brands that target the Millennials and Gen Z
have seen a motivational growth in
engagement in social commerce.
• Marketers have seen a growth affected by
influencer content marketing, hashtag
challenges, and shoppable posts.
• US retail sales have shown a valuable increase
from 2020 when the trend was introduced by
Facebook; to 2022 when multiple platforms
have adapted to the social commerce trend as
a business model.
• Going ahead 2025 sees massive growth in sales
for retail brands as the adaptability of this
trend increases.
7. Ongoing Developments
• Competition is getting serious day by day on these
platforms, TikTok and Youtube are one of the big players,
and multiple startups are getting introduced.
• Instagram is looked at the as stiff competition for all the
players as it is not only about being entertained but also a
source of multiple information and quick purchases.
• Video content plays an important part for the consumers
before making purchases on social networks; brands have
started using product videos and influencer video content
in their social commerce strategies.
• Social commerce has now started developing in other
content behaviors like Livestream and Live chat.
9. • Seeing the demand for social commerce, the brands
decided to implement the tool in their marketing strategy
to connect with their consumers.
• The initial step was getting in via Facebook Marketplace
and LINE official accounts and taking direct orders
through chat windows.
• By quick response through these social accounts L'Oréal
was able to make faster transactions and lower the cost of
service.
• The shoppable feature further helped to lower the cost
that was done for eCommerce websites.
• over 5 months the engagement rate surged and inquire
to sale conversation rate was increased by 22 percent.
10. Going Forward
• Social Commerce is an emerging market due to the
usage of social media.
• Multiple types of research have been conducted to
understand the behavior and growth patterns of the
users and most of them show that 15-20 percent of
their day is spent scrolling on social networks and at
least 10 percent of adults are addicted to a minimum
of one app.
• As per the market forecast by Statista.com, social
commerce business will be around 2.9 trillion by 2026
as this shopping method becomes all the more
popular.