Unlocking the Power of Social Commerce
Published by Spinutech on August 22, 2024
Welcome to the world of scrolling and shopping.
You’d be hard pressed to find a more seamless shopping experience today than on social media, where users can make purchases without ever leaving the platform.
Just ask the users who contributed to the $37 billion in global social commerce sales in 2021. By 2025, sales are expected to reach $80 billion and account for 5% of all U.S. ecommerce sales.
That may seem like a small chunk for now, but social commerce sales are only going to grow.
What is Social Commerce?
Social commerce isn’t a trend. It’s the next step in the evolution of how consumers shop online.
By allowing users to discover, engage with, and purchase products all within their favorite social apps, brands are meeting potential customers exactly where they are.
Platforms have been tailoring their offerings to help drive the rise of social commerce:
- In-App Purchasing: Platforms like Facebook, Instagram, and TikTok have transformed into digital shopping malls where users can browse and buy without ever leaving the app.
- Shoppable Posts: Ever seen a product tag in a post? That’s social commerce in action — clickable links that take you straight to the checkout.
- Native Storefronts: Brands can now create full-fledged digital storefronts directly on social platforms, making it easier than ever to shop their entire catalog.
- Social Proof: User-generated content, reviews, and recommendations add an authentic touch, helping to sway purchase decisions in real-time.
Social Media Algorithms Are More Shopping-Friendly Than Ever
Nowhere is the shift to shopping more apparent than in social media algorithms. Not only are they getting smarter, but they are placing increased emphasis on shopping-related content.
Algorithms now analyze your likes, shares, and clicks to serve up personalized product recommendations that match your taste perfectly. Platforms like TikTok and Instagram are doubling down on short-form video content with built-in shopping features. Users can also tune into a live stream and buy the products being featured as they engage with the host in real-time.
Major Retailers Are Already Embracing Social Commerce
For retailers, social commerce isn’t just another channel — it’s a top source of revenue. Not only are major retailers investing significant resources into social commerce, but smaller and more niche brands are also finding success by leveraging the unique features of different social platforms to connect with and sell their products to their audiences.
Those unique features include, but are not limited to:
- Expanded Reach: With more than 5 billion social media users globally, the potential audience available to brands is massive.
- Reduced Friction: By streamlining the shopping experience, from discovery to checkout, social commerce removes traditional barriers, making it easier for users to convert.
- Increased Conversion Rates: Social proof and personalized recommendations are key drivers of sales, turning casual browsers into buyers.
- Data-Driven Insights: Social platforms offer valuable data on user behavior, helping retailers refine their strategies and deliver what customers want.
- Brand Loyalty: Direct interaction on social platforms fosters stronger relationships, turning one-time buyers into loyal fans.
4 Ways to Incorporate Social Commerce into Your Social Media Strategy
If you haven’t already embraced social commerce, there is no time like the present.
Here are four places to start:
- Create Shoppable Content: Develop content specifically designed for social commerce. Think shoppable posts on Instagram, shoppable videos on Instagram and TikTok, and live streamed product promotions on platforms like Twitch. Make your content easily purchasable by tagging products and enabling direct checkout options.
- Integrate Social Commerce Features: Take full advantage of social commerce features offered by the various social media platforms, including Instagram Checkout, Facebook Shops, and Pinterest Product Pins. These allow users to make purchases directly within social media apps, creating a seamless shopping experience.
- Leverage User-Generated Content: Encourage customers to create and share content featuring your products. User-generated content builds trust and authenticity.
- Get Personal: Use data and insights from social platforms to personalize product recommendations, ads, and content for individual users.
Social Commerce Marketing is the Future. Now is the Time to Embrace It.
By leveraging social commerce strategies, you can capitalize on changing consumer behaviors and drive significant revenue growth through these increasingly important digital channels.
If you’re looking for a partner to strategize with, we can help with that.