What is social commerce?
Social commerce is the buying and selling of goods or services directly within a social media platform. It represents a departure from traditional online retail by allowing users to complete their entire purchase journey without leaving their preferred social media apps. This approach offers a streamlined experience that encourages consumers to complete purchases they might otherwise abandon due to the complexity of navigating different platforms.
According to Sprinklr, With 4.9 billion social media users worldwide, about 76% of consumers discover products through brand posts. Social commerce connects you to this vast audience, including 18-34-year-olds who are already shopping on social media.
Social commerce vs. e-commerce
Social commerce is a form of e-commerce that enables transactions within social media platforms, whereas e-commerce includes various online sales channels like websites, marketplaces, and retailer apps.
Best social commerce platforms to use in 2024
1. Facebook
– Facebook provides a convenient entry point through its Facebook Shops feature. Brands can establish a shop for free, either by integrating their product inventory with partner platforms or manually uploading product details.
– Customers can find products via the Facebook Shop tab, which displays items tailored to user preferences. They can make purchases either within the app or by being directed to the brand’s website.
2. Instagram
– Instagram Shopping links brands’ Instagram business accounts to their Facebook Shops, enabling product tagging in videos and posts. This allows users to easily discover and shop for new items.
– Users can browse product listings and make purchases either directly in the app or on the brand’s website.
3. TikTok
– TikTok has introduced social commerce capabilities through TikTok Shop, enabling retailers to create shops and produce shoppable videos. Viewers can shop during TikTok LIVE broadcasts and take advantage of exclusive product launches.
4. Pinterest
– Pinterest Shopping streamlines selling by letting retailers upload their product catalog to their business page. Users can tag products in Pins to provide information within the platform.
– Although it is not direct social commerce, Pinterest directs users to product landing pages to finalize purchases.
Generative artificial intelligence (AI) can accelerate content creation in various industries, including marketing, by providing innovative ideas. Creative professionals need to balance the advantages of AI with preserving their unique style. Generative AI in social media can assist in crafting personalized advertisements with tailored messages and value propositions for different target groups, allowing advertisers to quickly produce fresh and imaginative ad content.
Benefits of social commerce for your business
1. Expand your reach to a larger audience
Social media usage is growing, with over 5 billion users worldwide. Consumers discover new brands and products through social media, and direct purchases via links or in-app are becoming more common. By 2024, there will be 110.4 million US social media buyers, representing half of all users. Utilizing social commerce allows your products to reach a large audience and attract new customers.
2. Facilitate customer conversions and minimize obstacles
Social commerce enables customers to make direct purchases on the platform, simplifying the buying process and removing the need to switch to a different app or website.
3. Boost reviews and recommendations for social proof
For businesses new to online sales, social media is ideal for building social proof. Reviews help online shoppers make informed purchase decisions, and managing the entire customer journey on social media creates a positive feedback loop.
4. Collect valuable data on customer social behavior
Social commerce provides access to customers’ social profiles, offering valuable data for shaping your strategy and gaining insights into your audience’s habits and interests.
Social commerce examples
Following is a list of some social commerce examples –
- CLUSE: CLUSE uses Instagram to create a visually appealing shop window, incorporating user-generated content (UGC) and hashtags to guide followers to their shop.
- Sinless Beauty: Frequent giveaways boost engagement by encouraging followers to share and tag, leading to greater visibility.
- Burberry: Utilizing videos on Facebook, Burberry brings its products to life and showcases them creatively.
- Au Revoir Cinderella: By leveraging UGC, the brand lets its products speak for themselves, displaying them in natural settings.
- J. Crew: Featuring customer feedback on product pages helps customers make quicker purchasing decisions and encourages more consumer feedback.
- Dollar Shave Club: Combines positive customer feedback and UGC on Pinterest to build trust and stand out in a competitive market.
- Sephora: Personalized experiences like the “Fragrance IQ” quiz provide tailored recommendations and keep shoppers engaged.
- Havaianas: Lookbooks and shoppable Instagram feeds merge UGC and customer content for a personalized eCommerce experience.
- ASOS: Uses bold imagery on Facebook to stand out and drive engagement.
- Fab: Social buttons on eCommerce sites encourage customers to share their purchases and showcase their shopping experiences.
Conclusion
The growth of social commerce is transforming retail by combining social media and shopping experiences. Users can discover and buy products directly within social platforms, enabling brands to engage customers and boost sales. Social commerce provides numerous benefits, including expanding audience reach, smoother customer conversions, improved reviews and recommendations, valuable data on customer behavior, and increased revenue beyond traditional e-commerce.
As social commerce grows, businesses can use social media for personalized shopping and innovative marketing. Integrating social commerce can help brands build customer relationships and differentiate themselves in a competitive market. Observing successful examples from companies like CLUSE, Sinless Beauty, and Burberry can offer insights into best practices and innovative approaches.
