The Rise of Social Commerce: Unlocking the Potential of Social Media for Retail
Social commerce ICONS
uSE SOCIAL COMMERCE TO YOUR BRANDS ADVANTAGE
The Rise of Social Commerce: Unlocking the Potential of Social Media for Retail
Introduction
In today's digital age, online shopping has become increasingly popular, and social media platforms have transformed the way we connect and engage with others. As a result, a new trend has emerged: social commerce. This innovative approach allows users to buy and sell products directly within their favorite social media apps, eliminating the need to navigate to external websites or landing pages. In this article, we will explore the concept of social commerce, discuss the best platforms to utilize in 2023, outline the benefits for businesses, share key statistics and trends, and provide successful examples and strategies for increasing sales on social media.
What is Social Commerce?
Social commerce refers to the process of buying and selling goods or services directly within a social media platform. Unlike traditional e-commerce, where users are redirected to external websites to complete their purchases, social commerce enables users to seamlessly complete the entire purchase journey within the same app. This eliminates unnecessary steps and reduces friction, increasing the likelihood of conversion. Leading social media platforms such as Facebook, Instagram, Pinterest, and TikTok now offer dedicated social commerce tools to retailers, allowing them to create digital storefronts right within the platform. Users can discover and purchase products without leaving their preferred apps, making the entire shopping experience more streamlined and convenient.
Best Social Commerce Platforms to Use in 2023
To leverage the potential of social commerce, it's essential to identify and utilize the most effective platforms. In 2023, Facebook, Instagram, Pinterest, and TikTok remain at the forefront of social commerce capabilities.
Facebook's social commerce tool, Facebook Shops, offers a user-friendly and accessible platform for retailers. Setting up a shop is free and can be easily done within your Facebook business profile. By using a partner platform, you can seamlessly sync your entire inventory list, or alternatively, use a spreadsheet to upload product information. The Facebook Shop tab on the mobile app showcases products based on user preferences, facilitating organic brand discovery. Customers can complete their purchases within the app or on your website, while sellers can communicate with them through Messenger for support and inquiries.
Instagram Shopping is directly linked to Facebook Shops, making it a valuable platform for social commerce. To set up a shop, users must connect their Instagram business account to their Facebook business profile. Once set up, businesses can upload an existing product catalog or create a new one. Instagram Product Tags allow users to highlight items from their catalog directly in their posts and videos, providing a seamless shopping experience. By tapping on a tag, users can learn more about the product and explore other listings. Purchases can be made within the app or on the business website.
Pinterest Shopping offers retailers the opportunity to showcase their products and drive sales on the platform. Retailers can upload their product catalog to their Pinterest business page and tag products in their Pins to provide additional information. While Pinterest's Product Pins are not direct social commerce tools, they simplify the buying journey by allowing users to access product information within the platform. By clicking on a Product Pin, users are redirected to a product-specific landing page to complete their purchase.
TikTok
TikTok has embraced social commerce by introducing its own social commerce capabilities. Businesses can set up a TikTok Shop to showcase their products and drive purchases directly within the app. This feature enables businesses to create shoppable videos and enables viewers to shop directly during TikTok LIVE broadcasts. TikTok's social commerce capabilities provide a unique opportunity for brands to engage with their audience in real-time and increase sales.
Benefits of Social Commerce for Your Business
1. Reach a Wider Audience of Potential Customers
With over 4 billion people using social media worldwide, leveraging social commerce allows businesses to reach a massive audience. By integrating commerce capabilities into social media platforms, businesses can expose their products to a larger pool of potential customers. According to Sprout Social's Social Shopping in 2022 study, 40% of consumers discovered the perfect product through a brand's organic post on social media. This highlights the importance of social commerce in expanding brand visibility and attracting new customers.
2. Convert Customers Where They Are and Remove Friction
One of the key advantages of social commerce is its ability to convert customers where they are. By enabling users to make purchases directly within the social media app, social commerce eliminates the need for users to switch to a different app or website to complete their purchase. This streamlined process removes friction and reduces barriers to purchase, resulting in a more seamless and convenient buying journey.
3. Increase Reviews and Recommendations Through Social Proof
In the online shopping world, social proof plays a crucial role in influencing purchase decisions. Social commerce provides businesses with the opportunity to gather reviews and recommendations from customers in one centralized location. By offering social commerce options, businesses can encourage customers to make purchases and leave reviews, creating a positive feedback loop. As engagement and reviews grow, social media algorithms recognize the relevance of the content, potentially attracting more potential customers.
4. Gather Useful Data on Your Customers' Social Habits
Social commerce features provide businesses with valuable insights into their customers' social profiles. This data can be used to inform and enhance existing marketing strategies. By combining social commerce insights with social media listening, businesses can gain a comprehensive understanding of their target audience's habits and interests. This information can then be utilized to optimize messaging, conduct A/B tests, and deliver more personalized and impactful content.
5. Drive Additional Revenue than Traditional Ecommerce
Social commerce is rapidly becoming a significant driver of revenue for businesses. According to McKinsey, retail social commerce sales in the US reached $45.7 billion in revenue in 2022, and experts predict that this number will increase to nearly $80 billion by 2025. While social commerce currently represents around 5% of total retail ecommerce sales, its growth potential is undeniable. By embracing social commerce, businesses can tap into new revenue streams and capitalize on the increasing popularity of social media as a shopping platform.
Social Commerce Statistics Marketers Should Know
To further understand the impact and potential of social commerce, let's examine some key statistics:
Facebook is the most popular platform for social commerce, with an estimated 5 million users in the US making a purchase on the platform in 2022.
Instagram follows closely behind, with an estimated 41 million buyers making purchases on the platform.
TikTok has emerged as a popular option, with 23.7 million users engaging in social commerce on the platform.
Pinterest attracts approximately 15.9 million social shoppers.
Targeted ads are the primary method of product discovery for social shoppers, with 49% of surveyed individuals finding products through these ads.
Recommendations from friends are highly influential, with many consumers making purchases based on their friends' suggestions.
Social Commerce Trends for 2023
As social commerce continues to evolve, several trends are expected to shape its development in 2023:
Livestream shopping is anticipated to drive a significant portion of social media purchases. Sprout Social's social shopping study found that 61% of shoppers already use livestream shopping, and 53% plan to increase their usage.
Virtual reality (VR) and augmented reality (AR) experiences will enhance the social shopping experience. Platforms like Pinterest have introduced "Try On" features powered by AR, allowing users to virtually try on makeup products and visualize home decor items in their space.
Inclusive marketing will play a crucial role in social commerce. Sprout's social shopping study revealed that 60% of shoppers are more likely to buy from a brand that embraces inclusivity. By incorporating diverse and inclusive marketing strategies, businesses can attract a wider audience and drive sales.
Successful Social Commerce Examples
Examining successful social commerce strategies can provide valuable insights and inspiration for businesses. Let's explore four notable examples:
The Tiny Tassel: This handmade jewelry retailer utilizes Facebook Shop features to create informative and visually appealing product pages. The detailed product descriptions, customization options, and shipping information build trust with potential buyers and motivate them to make a purchase.
Patagonia: Patagonia's Pinterest boards mirror its website navigation, creating a seamless experience for both returning and new customers. By organizing products in a familiar manner, Patagonia ensures consistency and cohesion between its Pinterest presence and main website.
Target: Target focuses on items that align with its Instagram content strategy, ensuring a better browsing experience for its established Instagram audience. By strategically selecting products to feature and leveraging data-driven insights, Target optimizes its social commerce efforts.
Made by Mitchell: Makeup brand Made by Mitchell exclusively launched a product on TikTok Shop, collaborating with popular TikTok creator Melissa Jade. The brand hosted a live stream showcasing the product, resulting in significant viewership and a 100% sell-out rate. Made by Mitchell also encouraged sales through mystery beauty bundles, generating excitement and buzz around the collection.
Take Action
Social commerce is revolutionizing the retail industry, providing businesses with new opportunities to connect with customers and drive sales. By leveraging the power of social media platforms such as Facebook, Instagram, Pinterest, and TikTok, businesses can reach a wider audience, remove friction from the purchasing process, and gather valuable customer data. With the right strategies and tools, businesses can enhance their social commerce efforts, increase revenue, and stay ahead of the competition in the evolving digital landscape. Embrace the potential of social commerce and unlock the benefits it offers for your business.
