What is Social Commerce ? Discover Its Benefits for Your Business

Social networks and shopping have started to overlap more and more. No longer are they separate entities; they’re merging into a powerful force reshaping the e-commerce landscape: Social Commerce.

Imagine this: You were thumbing through an Instagram feed and came across an outfit you liked on an influencer, and with a swipe or two, you are taken to the product page to make a purchase. This is social commerce where social activity combines with shopping activities.

• Social Commerce: A Force to Be Reckoned WithSocial commerce is anticipated to grow at a compound annual growth rate (CAGR) of 30.8% from 2023 to $604.5 billion in 2027. (Source: Statista).
• 97% of Gen Z consumers say social media is their top source of shopping inspiration. (Source: Shopify)
• 57% of consumers are more likely to purchase from a brand they follow on social media. (Source: Sprout Social)

These statistics paint a clearer picture of how consumer habits are changing. Social media has never been this efficient in bringing and connecting people but it is quickly emerging as one of the best ways to find, evaluate, and buy goods.

This comprehensive guide contains a clear explanation of the following issues: the social commerce concept, its advantages, critical platforms, and what it will mean for your business in the years to come.

What is Social Commerce?

There is a definition for everything including social commerce which is any buying or selling which takes place in social networks. It is not only aimed at transferring the customers from a social network to a website; it seeks to provide virtual department stores; wherein the customers enjoy a complete buying experience from the comforts of their social media.

Types of Social Commerce

Social commerce can take different directions each providing businesses with different avenues:

• Shoppable posts and stories: A major multitasking feature in so many social media platforms today is enabling businesses to tag products when making posts or stories for users to click and shop immediately.
• Livestream shopping: The Future is Live video stream chat sessions with influencers or brands hosting video live product demos. Potential customers interact and purchase products immediately during live events.
• Social Media Storefronts: Your Digital Shop Window Some applications of social commerce include social media profiles with pictures of products attached to the store profiles as is the case with Instagram Shop and Facebook Store. Learn more about Facebook Shops and Instagram Shopping.
• User-Generated Content (UGC): The Power of Authenticity UGC examination is essential for developing social commerce. Customers documenting their use of a brand’s products through photographs and videos can result in increased awareness, interaction, and eventually sales.

Brands Winning at Social Commerce

Many enterprises convert their conventional commerce to social-based systems and more than excel at this practice:

• Nike: A Social Commerce Powerhouse, But a Lifestyle As they target the young market, Nike employs shoppable posts on Instagram, influencer marketing, and interactive AR to sell through social media. See the Instagram of Nike for reference.
• Glossier: Built on Community and UGC That Was Made with Its Audience This beauty brand focused on user-generated content and tapped into a devoted audience on Instagram grew rapidly and built a faithful fan base. Observe Glossier’s strategy.
• Walmart: Embracing Livestream Innovation As a participant in the budding phenomenon of livestream shopping, Walmart teamed up with TikTok to do shoppable livestreams made good sales, and reached younger users.

Social Commerce vs E-Commerce: What’s the Difference?

While both involve online buying and selling, social commerce and traditional eCommerce differ in key aspects:

Why Your Business Needs Social Media?

Initially, social media was only considered a platform for people to communicate with each other. Today, it is no longer simply a geography that businesses look to engage their audience and strengthen brand presence but rather a channel to make actual sales.

Here’s why social media is indispensable for businesses:

• Expand Your Reach: The users of social media sites billions which means many customers will be addicted.
• Precision Targeting with Social Media Advertising: Efficient targeting is made possible through the use of social media ads and this is based on the demographics of the consumers, interests, and their online activity.
• Elevate Your Brand: A consistent delivery of interesting messages combined with an active presence of the brand on social media makes it possible to capture and hold the interest of the audience much better than before.
• Drive Traffic and Boost Sales: It provides the opportunity to make sales out of engagement.
• Unlock Customer Insights: Social media insights help businesses know their audience and even formulate strategies better.
• Transform Customer Service: Customer Service is aided through social platforms by addressing customers who are pulling up complaints or queries.

6 Essential Benefits of Social Commerce: Why is It Important?

• Amplify Your Reach & Visibility: Using social networks as marketing and advertising tools makes more sense as they have a vast number of users exposing the brands. Instead of selling Out of a corner Shop, you can Sell Out of the Corner of the World – This is What Social Commerce Does For You.
• Deeper Customer Connections: Build connections with your audience with the help of animated content, live sessions, and back-and-forth communications. Imagine answering questions from your followers or inviting them into the inner workings of your brand – social commerce makes this happen.
• Seamless Shopping Journeys: To make interaction with the social media environment more enjoyable, customers should be enabled to purchase without having to leave the same environment. A user sees a product they love on Instagram – with social commerce, chances are they won’t even have to leave the app to buy it.
• Boost Your Conversion Rates: Impulse buying is omnipresent within social commerce and social proof reduces eCommerce risks meaning sales are very much likely higher with social commerce compared to eCommerce. Products marketed on social media have potential buyers craving them even when they are not physically available because the excitement created by the users is irresistible.
• Gain Invaluable Customer Insights: Analyze the feedback you generate on your social media pages to learn more about your customers – their preferences, behaviors, and desires. Engaging in-market social listeners gathers vast amounts of information regarding what the audience likes and what frustrates them, thus enabling organizations to strategize their offerings wisely.
• Cost-Effective Marketing Solutions: Reaching your audience through social media marketing and advertising has been proven to be less expensive than using other advertising techniques. You can effectively spend your campaign money on targeted advertising since you will only be reaching the right audience.

Top Platforms for Social Commerce Success

• Facebook: Your Social Commerce Hub: Considering the wealthy number of potential customers, Facebook has billions of active users. Other features such as Facebook Shops, Marketplace, and shoppable ads provide businesses with robust social commerce tools.
• Instagram: Visual Storytelling That Converts: Instagram is yet another social platform that is highly visual and extensively influenced by influencers, making it suitable for social commerce. Brands can sell and promote their products using Shoppable posts, stories, and live streams from within the app itself. There is a need for a WooCommerce Facebook product feed WooCommerce plugin for businesses relying on WooCommerce in product marketing. This complex integration enhances the ease in the management of stock and presentation of items in the two shops, optimizing the brand’s advertisement on Facebook market and Instagram.
• Pinterest: Inspiration to Purchase: Pinterest users are also in the mood of seeking out inspiration and ideas making it an ideal platform that takes product discovery to a whole new level. Through shoppable pins and product catalogs, more businesses can make the occupied attention useful.
• TikTok: The Power of Short-Form Video: In terms of rapid growth, the platform that is currently dominating the scene is TikTok, especially for social commerce, to the younger audience. On this platform live stream shopping and influencer collaboration works excellently.

The Future of Social Commerce: What’s Next?

The social commerce revolution is just beginning. As technology evolves and consumer behavior shifts further toward social shopping, we can expect to see:

• Immersive Shopping with AR/VR: Think about sitting in comfortable clothes and surfing your favorite social platform, and trying some dress or a gadget in 3D rather than looking at the images of those products. How cool would that be!
• Hyper-Personalized Shopping: With social media in play, consumers will find products more suitable to them due to social media, resulting in many types of shopping stemming from social networks.
• The Rise of Social Shopping Communities: Development of systems that are able to efficiently help users to subgroups and in turn share recommendations, reviews, and other relevant information with users from the subgroup.

Social Commerce: Your Ticket to Success

Social commerce is transforming the relationship between brands and consumers for sales. By adopting this changing environment, businesses have an opportunity to tap into new levels of reach, engagement, and even revenue generation. No matter whether you are looking to take the plunge of creating your online footprint or you are a seasoned entity looking to scale up, adding social commerce as part of your overall strategy is no longer a good idea; it is a requirement for survival in this digital age.

Ready to unlock the power of social commerce but not sure where to start? Icecube Digital can help! Our team of social media experts can develop a tailored strategy to drive engagement, boost conversions, and upscale your brand on social media. Contact us today to learn more.