Social Commerce: A new wave in the digital world
Here is what you need to know about social commerce. In the digital world, with an increasing number of social media users, social commerce is gradually getting popularity. It has taken the e-commerce world by storm. Social networking sites are empowering small and medium businesses to remain in a competitive world of business.
Social commerce: what is it?
Social commerce is an example of electronic commerce. It uses online platforms including social media to buying and selling of products. In social commerce, e-commerce transactions are preferred. It basically supports the companies to engage their customers with their brand. Customers also get benefitted from social commerce as all the information about a product is available in one place.
Evolution of social commerce
Although social commerce is a relatively new phenomenon of shopping, it has evolved very rapidly in the past few years. With the advancement of technology, social commerce co-evolved.
The term social commerce was introduced in 2005 on yahoo. The earlier social platform was used to increase brand awareness among the users, and there was no significant revenue generation. With the introduction of Twitter, Instagram and increasing users of social media, companies started noticing changing customer behavior. Since then, buying and selling of products were integrated with the brand awareness ads and promotions.
Social commerce has picked-up its growth yet a lot of opportunities are there that needed to be explored. The fast-approaching Internet of things is expected to boost business through social commerce.
Types of social commerce
Offsite social commerce
The purchasing activity doesn’t occur from the retailer’s website. When the customers buy any product of the brand from Facebook, Pinterest, Twitter, or any other social media sites. Although, it is noted that users are less intended to purchase from social media sites.
Onsite social commerce
The products of a brand are sold from their own website is called onsite social commerce. The companies actively sharing and promoting their product so the social functionality increases the product selling. Live feeds and user review plays a key role in onsite social commerce as it improves the customer’s engagement.
Important Factors for social commerce
Consumers always look for reviews in order the see the get proof of the product. So companies should accept social feedback that acts as proof to show their customers. In social commerce, recommendations and feedback are very beneficial.
People prefer to buy quality and authentic products. It becomes a little challenging to verify the products sold through social commerce. Depending on the review of the same or related products, buyers make sure of the originality of the product.
Scarcity of the products
The supply and demand of products are more for those products that are scarce in the market. So if a brand is able to convince its customer about the uniqueness and not easy to acquire the products, they attract them to purchase.
Products available for sale through social commerce
A large variety of products are being offered by the brands. The products that are available for purchasing through social commerce include Personal & Beauty Care, apparel, accessories, home products, health supplements, Food & Beverage, and many more. Customers have the option to compare the product available by looking at the reviews of other shoppers.
Prospects of social commerce
Due to the easy and affordable availability of the internet, the number of users on social media is also increasing. Every age group is fond of appearing on the different social media platforms. Thus companies are using social commerce to promote their brand authenticity. They should be aware of the prospective trend of social commerce
Role of micro-influencer
In the current trend, the micro consumers are considered to be more authentic by the consumers. Some people may get confused with the word, micro-influencer. Who are they? Any persons who are active on social media including photographers, writers, fashion bloggers, and designers, etc. who have a considerable number of followers. They promote brands through various channels.
Another popular trend is Facebook ads. Customers' reviews and photos are used to make creative ads. These ads fit best in the newsfeed of the customers. This attracts people to know and buy the product. Facebook ad strategy is simple and scalable. Hopefully, it will gain the attention of various brands.
Users of social media are more influenced by visual content. Various brands are already using Instagram and post-high standard content of their products. Active engagement of the customers is mandatory to propel the marketing value of the products on social media. In the coming few years insta- brands will gain significant attention in social commerce.
The Social Commerce Market has been witnessing rapid growth due to the increasing appearance of people on social media sites. Social commerce has changed the way of interaction between shoppers and retailers. Over the decade, social commerce has evolved at a faster pace. There are basically two types of social commerce that is offsite and onsite. Companies must focus on the factors that will aid in gaining the trust of the customers in order to improve their brand value.
The Global Social Commerce Market has been anticipated to rise at a growth rate of 29.4% CAGR over the forecast period.