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What is Social Commerce? Why Your Business Should Consider It

July 2nd, 2024
Graphic of a woman pulling a purse out of a huge mobile phone 1

Boost Your Business with Social Commerce

We shop now based on too many variables and influences that are evolving rapidly. Social media is playing quite a role in helping us discover and purchase products. Enter social commerce, a revolutionary approach that blends the social aspects of platforms like Instagram and Facebook with the convenience of online shopping. But what exactly is it, and why should your business be thinking about it?

Seamless Shopping Within Your Feed

Imagine scrolling through your Instagram feed, stopping at a captivating image of a new pair of sunglasses. Social commerce removes the need to leave the app. You can view product details, along with valuable reviews from fellow users (known as "social proof"), and most importantly, make the purchase directly within Instagram. This eliminates friction from the checkout process, a major benefit for online retailers struggling with abandoned carts.

The Power of Social Proof

Social commerce thrives on the power of community.  And 50% of marketers plan to increase their investment in social selling in 2024 because recommendations from friends and influencers hold significant weight for consumers. By leveraging social features like user-generated content and influencer marketing, businesses can build trust and credibility, ultimately driving sales.

Here are some of the leading social commerce platforms and a quick breakdown of their strengths:

  • Instagram: A visual powerhouse, Instagram excels at showcasing products with stunning photos and videos. Instagram Shopping feature lets users tap to view product details and purchase directly within the app.

  • Facebook: Has extensive advertising capabilities and a large user base. Facebook Shops allow businesses to create a dedicated shopfront within the platform, complete with product catalogues and checkout options.

  • Pinterest: A discovery engine known for its mood boards and curated collections. Product Pins enable users to seamlessly purchase products they discover while browsing inspiring content.

  • TikTok: The king of short-form video, TikTok is rapidly evolving into a social commerce powerhouse. Brands are using creative video ads and partnering with influencers to capture attention and drive sales.

  • YouTube: YouTube offers immense potential for social commerce. Through engaging video content, product reviews, and influencer partnerships, brands can educate, entertain, and ultimately convert viewers into buyers.

  • Snapchat: Known for its disappearing content and engaged younger audience, Snapchat offers unique social commerce opportunities. Their Shopping Lenses leverage augmented reality (AR) to let users virtually try on products or see them in their environment. This interactive experience can be highly engaging and drive conversions, particularly for fashion, beauty, and homeware brands.

A Look at the Numbers

The market for social commerce is expanding, and in 2023, the penetration rate of social commerce increased by 23.6%, according to Statista. It’s expected to continue to rise by another estimated 5% by 2028.

This explosive growth highlights the immense potential for businesses to tap into a massive and engaged audience.

Is Social Commerce Right for Your Business?

Social commerce isn’t a one-size-fits-all solution. However, if your target audience is active on social media and your products are visually appealing, it’s definitely worth considering. Consider:

  • Your Industry: Social commerce works well for a variety of industries, particularly fashion, beauty, and home goods.

  • Your Resources: Building a successful social commerce strategy requires investment in social media management, content creation, and potentially influencer marketing.

Taking the First Step

If you’re ready to explore social commerce, start by identifying the platform where your target audience spends the most time. Try out features such as influencer relationships, live broadcasts including product demos, and shoppable posts. By creating engaging content and fostering a sense of community, you can turn your social media followers into loyal customers.

Social commerce paints a new picture of online shopping. By embracing this innovative approach, you can position your business for success in the ever-evolving retail landscape.