Social Commerce 101: What is Social Commerce


19 July, 2023

Social Commerce

Last updated on 17 August, 2023

Written by Content Team

What is Social Commerce? A Beginner's Guide to Selling on Social Media

Social commerce is the future of retail. In this guide, we'll explain what is social commerce, how it works, and how you can use it to sell your products and services.

Introduction

Online buying has become more sociable. Consider going through Instagram and discovering something you like. You complete your purchase from within the app, avoiding the need to navigate to a product landing page. That is precisely the type of experience provided by social commerce. It streamlines the purchasing process by removing unnecessary processes, increasing the likelihood that customers will complete their transactions.

How can you ensure that your brand stands out from the crowd? How do you increase ecommerce sales with social media apps? Brands must have a thorough awareness of their target audience's shopping habits and how to use social commerce tools to create a superior consumer experience. Wondering what is social commerce and what it entails? Read on for a complete guide to what social commerce is.

What is Social Commerce?

The purchasing and selling of products or services within a social media platform is known as social commerce. It entails going beyond social media's typical role in the discovery phase. Instead, users will be able to finish the entire purchasing process on the same platform. This means users can easily transition from discovery to buying without leaving their favorite apps.

Leading social media sites now provide retailers with dedicated social commerce capabilities. This covers social commerce platforms like Facebook, Instagram, Pinterest, and TikTok. You can construct digital stores straight within the various platforms by using these capabilities. As a result, customers may utilize these storefronts to find and purchase things without having to visit a different website.

Distinction Between Social Commerce vs eCommerce

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eCommerce is often confused as social commerce meaning but there are differences between the two. E-commerce is the act of making purchases through social commerce websites or branded apps. Typically, Shopify or other e-commerce platforms are used to build these websites. Any internet-capable device, including a tablet, desktop, or mobile device, can be used by customers to access these websites.

Social commerce is a subtype of eCommerce that refers to customers making purchases through social media platforms--everything from researching products to checkout takes place within the social media platform.

Brands can sell on their social media channels using social commerce. There is no obligation for them to have their commerce website use native selling tools on social media sites. However, online retailers having a website and an online store can gain from sending leads to their website as well.

Which Social Commerce Platforms are on the Top?

Four major social media sites presently offer native features for social commerce. More social media networks may develop online stores with Buy buttons as social commerce's acceptance and revenue continue to rise.

1. Facebook

Fashion is highly subjective, and customers seek personalized experiences. Myntra has embraced this trend by leveraging artificial intelligence and machine learning algorithms to curate personalized user recommendations. By analyzing user preferences, browsing history, and purchase patterns, Myntra can offer a tailored shopping experience, thereby enhancing customer satisfaction and driving sales.

According to Statista, Facebook was the most used social media platform for making purchases in 2021. Additionally, research by eMarketer revealed that at least 71% of Facebook users worldwide occasionally make purchases there. That adds up to 59.4 million clients, many of whom you may contact just by establishing a Facebook business.

For businesses looking to engage in social commerce, creating a Facebook profile makes sense. Any Facebook Business account has the ability to open a Facebook shop, a totally personalized online storefront. Brands can upload their current product catalog or start from zero and develop another.

Visitors can browse the products that are offered, along with their sizes, color variations, and specifications, on a brand's Facebook page. Customers may directly ask brands questions through Facebook Messenger. Users can use Facebook Checkout to complete their purchase without leaving the app when they're ready, or companies can direct users to an online store.

2. Instagram

Instagram claims that one in two users use the app to find new companies, goods, or services. Additionally, 44% of users shop weekly on the platform. Instagram is a terrific platform for firms to expand their reach and increase their sales, whether it's through brand awareness campaigns or by offering customers a better online purchasing experience.

Users can purchase items that are featured in photographs and videos on Instagram. Similar to Facebook, business accounts allow users to display their goods through a resizable online store. Brands can do so by curating product collections. Every product in an Instagram Shop catalog has its page, which includes the item's price, a thorough description, and any images or videos that show it.

3. Snapchat

Although Snapchat hasn't given social commerce examples much attention in the past, they have supported augmented reality (AR), which has intriguing potential for social commerce. Snapchat's AR lenses are known as. Selfies can be taken using a lens that allows users to virtually try on accessories like makeup and sunglasses. They can practically try on any kind of apparel at this point.

According to Snapchat, more than 170 million users interact with augmented reality every day. Although you may currently try on things using Snapchat's AR lenses, you still need to click outside of Snapchat to complete the transaction.

4. Pinterest

In addition to being a social networking site, Pinterest is a search engine that emphasizes images. Users create mood boards, pin vacation spots, and—most importantly—find new merchandise.

More than 400 million users search for products and get ideas on the platform each month. What is ideal? 97% of the time, Pinterest searches are still unbranded. When retailers publish product listings from their online stores to Pinterest, they can draw in potential buyers who aren't yet familiar with their goods.

For instance, Allbirds draws customers to their Pinterest store via shoppable pins. Since these listings are optimized for both the brand name and the product category, Allbirds has the highest chance of connecting with customers who use Pinterest's Shop page to discover new goods.

What are the Benefits of Social Commerce?

By 2025, social commerce in the US is expected to be valued at $79.64 billion. There is a sizable piece of the pie available for retail firms interested in utilizing social commerce solutions.

Other than the potential increase in e-commerce sales, embracing social commerce has a lot of other advantages for retail firms. The top five advantages of social trade are as follows:

1. Enlarge your target market

2. Frictionless experience when shopping

3. Assemble audience research data

4. Rely on peer approval

5. Obtain consumer feedback

Conclusion

In India, there will likely be 448 million social media users by 2023. Social commerce is, of course, directly benefited by this sharp increase in social media users. In India, social media buy-sell or social commerce has been rapidly gaining popularity. The majority of social commerce in India is now being driven by new brands and first-time business owners. People from all walks of life are developing their personal brands and social media presence for their goods and services. You can head on to GoNukkad for upgrading your brand using social commerce.

Q. What is social commerce?

A. Social media platforms are used to market and sell goods and services through social commerce.

Q. Describe an example of social commerce.

A. The practice of adding product tags to Instagram posts is an illustration of social commerce. To learn more about the goods and to make a purchase, people can click on those tags.

Q.Who was the pioneer of social commerce?

A. In November 2005, Yahoo! coined the phrase "social commerce" to refer to a set of online collaborative purchasing capabilities like shared pick lists, user ratings, and other user-generated content-sharing.

Q. How does Amazon fit into social commerce?

A. Amazon has already tested several social commerce tools on its platform in the past, with varying degrees of success.

Q.Why is social commerce so crucial?

A. Social commerce provides a more seamless purchasing experience by allowing firms to sell their items directly on social media networks.

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