How Social Commerce is Changing the eCommerce Landscape
As the eCommerce industry continues to evolve, social commerce has become an important strategy in the way brands reach their target customers. Social media platforms offer a variety of ways for companies to connect and engage with shoppers, from leveraging influencers to showcasing products and services to integrating images and videos into the shopping experience.
Understanding the nuances of social commerce is key for any company hoping to be successful in this ever-evolving landscape. Here, we'll delve into how various aspects of social commerce and how they've impacted businesses' strategies and tactics when it comes to selling online. We'll also explore why you should consider implementing these ideas in your eCommerce strategy.
The Rise of Social Commerce
According to McKinsey & Company, social commerce represents a relatively small share of eCommerce sales. U.S. retail social commerce sales amounted to $45.7 billion in 2022. However, social commerce sales are expected to swell to nearly $80 billion by 2025, representing 5% of total U.S. eCommerce sales.
These numbers are only expected to grow as consumers continue to use social media platforms to explore new brands and products. Companies that adopt social commerce strategies now will have the advantage of being ahead of the curve as more shoppers turn to social media for purchasing decisions.
Social commerce has also been proven to increase brand loyalty and customer retention. According to a report by TotalRetail, "Once established, relationships built as a result of social commerce will reward brands and consumers alike, delivering ideal shopping experiences that encourage repeat purchases driven by unwavering loyalty and support."
Consumers are more likely to engage with brands that make use of their preferred social media platforms, leading to increased sales. Additionally, customers who follow a company on multiple channels are more likely to purchase products and services.
The Role of Social Media Influencers in Social Commerce
Brands can partner with social media influencers to share their products and services with a wider audience, as well as to generate positive word-of-mouth. Additionally, influencers can be used to highlight new products or promotions, encouraging customers to purchase items they may not have been aware of otherwise.
In addition to increasing brand awareness, social media influencers also help boost sales by providing authentic, genuine reviews of products and services. This creates a sense of trust between the brand and the customer, leading to more purchases.
Influencers themselves act as micro-platforms on social media sites. As such, they can be used to drive traffic to eCommerce stores, as customers are likely to click through links shared by an influencer they follow or admire.
Brands can afford to be selective when it comes to choosing influencers to partner with. It is a wide ecosystem that had more than doubled between 2019 and 2022.
Leveraging User-Generated Content to Enhance the eCommerce Experience
Brands that rely on eCommerce for sales can leverage user-generated content (UGC) to provide shoppers with an enhanced and more trustworthy shopping experience. UGC can include reviews, images, and videos posted by customers on social media channels.
UGC helps to create an engaged community around your brand and products, while also providing valuable feedback from customers that can be used to improve products or services. Additionally, UGC serves as a form of social proof, increasing consumer trust in the brand and resulting in more conversions.
By leveraging UGC, businesses can create a sense of connection between their customers and the brand. This allows them to build relationships with customers that will last long after they've completed a purchase.
Selling Directly Through Social Media Sites
Most social media sites now provide businesses with platforms that allow them to sell products directly through the social media platform. Some examples include Facebook Marketplace and Instagram Shopping. Social media platforms have also launched features like "shippable posts" and "shippable videos," which reduce the number of steps a user must take to make a purchase.
These platforms offer several advantages for businesses looking to increase sales. They allow customers to purchase products without ever leaving the social media site, making it more convenient for them to make purchases. Additionally, businesses can use these platforms to create targeted ads that reach specific audiences.
Future advancements in the social media landscape also hold promise for brands. For example, although it is still in its infancy, the Metaverse promises to transform the way we interact with each other in a virtual and social context. This technology is likely to drive further advances in retail, increasing sales and creating more personalized experiences for customers.
Don’t Miss the Next eTail Canada Event
Social commerce still represents a small share of the eCommerce landscape, but it’s no longer a strategy that brands can ignore. Moving forward, most retailers and brand manufacturers will need to leverage some aspect of social commerce to maintain their edge in the market.
To learn more about the future of social commerce, don’t miss the next eTail Canada event. It’s happening from September 27th to 28th at the Hyatt Regency Toronto in Toronto, Ontario.
Download the agenda and register for the event today.