Social media is a strong part of daily life for both consumers and businesses. Social media platforms are another channel for building brand awareness, gaining customer loyalty, and promoting products. With social commerce, social media has become much more than just a platform to reel in customers, it has become one of the places customers can purchase from. With social commerce, you can sell directly to your social media friends and followers without them leaving the site. Social commerce is a necessity for most modern eCommerce businesses to succeed in the digital age. Learn more about what social commerce is, why it is so popular, and how MobilityeCommerce can help.
Understanding Social Commerce: What is it?
Social commerce involves selling your products directly on social media. According to the Business Dictionary, social commerce is, “a form of electronic commerce which uses social networks to assist in the buying or selling of products. This type of commerce utilizes user ratings, referrals, online communities and social advertising to facilitate online shopping.” instead of using social media merely as a marketing tool to attract users to your website or eCommerce store, you can use social commerce on many of the major social media platforms. With social commerce, eCommerce functionality is available directly on social networks. For businesses trying to create a seamless customer shopping experience, social commerce is imperative because it allows customers to view and purchase a product without leaving the social media site they were browsing on.
The Rise of Social Commerce
As technology and social media use continue to climb, social media and eCommerce are blending into the realm of social commerce. Consumers are spending more time than ever on social media, making social commerce an obvious market trend for the future of eCommerce. Social media is already a crucial part of the buying experience for many shoppers. 54% of millennials research products on social media channels prior to buying and 31% of shoppers browse for new items on social media. While social commerce is quite new, it is also incredibly promoting. BI Intelligence estimates that the top 500 retailers earned 24% more from social commerce in 2017 than in 2016.
Some of the reasons consumers may purchase on social include:
- Convenience: When consumers browse for products on social media, it is easier to buy directly from the social channel than to exit and search for the product on a website. Being able to buy without leaving the social channel is a convenience that some consumers really enjoy.
- Impulse: Converting a customer quickly is the key. If they must go through multiple steps between seeing the product and buying the product, there is a greater chance they will decide not to get the product. Social commerce cuts down the time and effort of purchasing, which means more customers will purchase without second-guessing.
- Social influence: Social media is already a space where consumers look for product reviews, browse products, and interact with brands. The social pull on social media is strong and consumers can be influenced toward making a purchase on the platforms.
While it may certainly be more difficult to convince older generations to make a purchase through social, the younger generations are already doing so. According to Big Commerce, Generation Z shops on social channels 2 to 3 times more than average consumers, and are much less concerned with buying items in a physical store. Younger millennials and Gen Z spend most of their social commerce money shopping on Instagram and Snapchat, whereas Gen X is more likely to buy on Facebook. It is important to consider the shopping behavior of your target market. While all eCommerce businesses should strive to social commerce availability, those looking to sell to the younger generations must make it a priority, especially for channels like Instagram and Snapchat.
Succeeding with Social Commerce
The young generations shape the future of commerce, especially if those generations are your current target audience. Driven by changing cultural and consumer preferences of Millennials and Gen Z, social commerce is on the rise. In order to stay relevant and maximize your revenue, your eCommerce business will need to be available on social commerce.
Along with managing other channels, social commerce can seem intimidating. Luckily, we can help, MobilityeCommerce is a one-stop eCommerce platform that will integrate and automate your business workflow, inventory, and pricing for multi-channel eCommerce. We help you reach customers around the globe, including on social media channels. MobilityeCommerce offers unparalleled integrations with enterprise solutions and over 50 top marketplaces. We will help you meet all of your business needs, including social commerce, so you can sell to every potential customer. Learn more about MobilityeCommerce or get started with a free demo today by visiting our website HERE.