Social commerce is currently a buzzword in the retail industry, and many companies have already dug into it. Ever wondered how social commerce works?
As a social media user, have you ever clicked on a social media ad, and when you saw that you’d exited, let’s say, Instagram, abandoned the purchase? Indeed, leaving the platform is the last thing we want. Typically, users wish to convert but don’t want to stop scrolling.
If you’re an advertiser, how will you attend to this consumer need? Social commerce is the key. This article discusses how social commerce works to help you find out whether it’s a fit for your company.
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What is Social Commerce?
Social commerce means buying a product from a brand within the social media platform itself. It is currently available on Facebook and Instagram. Yet, this strategy is still an experiment undergoing constant evolution. Hence, you must research, analyze, and test whether it suits your company.
Let’s take Instagram Stories as an example to help us understand how social commerce works. You see an interesting ad/post, swipe up, and then it directs you to the seller’s website without leaving Instagram. Afterward, you buy the product, close the window, and you’re right where you left off.
Why and how did Social Commerce emerge?
As mentioned, modern consumers want to make a purchase but don’t want to leave the platform. As result, social commerce emerged as a solution to turn the user’s social engagement into purchases.
In 2007, Facebook was the first platform to investigate this strategy. Seven years later, in 2014, Facebook users could already buy products directly from the platform with the buy button. Afterward, the company first tested Shoppable Ads in 2015.
Finally, in 2018, Facebook introduced Marketplace, a platform within Facebook that competitors against eBay, Amazon, and others.
Instagram started a bit later. However, looking at it now, it absolutely has more potential. Since Instagram is a visually-centered platform, it allows users to look at beautiful pictures and videos. Thus, it is easier to turn engagement into sales.
Additionally, Instagram has a younger audience: the masters of craving immediacy. After all, the purpose of shoppable ads and posts is for immediate purchase through social media platforms.
Advantage of Social Commerce
This is an effective strategy as it reduces the steps the customers must take in completing a purchase. Thus, it is a win-win situation as the sales process is much faster for the customer and easier for the seller.
Moreover, the rise of smartphones and social media brought up such benefits. As mentioned, younger generations have the wish for immediacy. The dynamic nature of social commerce works as a solution for the urge to be up to date.
Conclusion
Many companies have already explored this ongoing experiment. Yet, it does not mean that you need to. You first need to do qualitative and/or quantitative research to get to know your possibilities.
This strategy has good potential and it will improve alongside social media usage and technology. It is entirely up to you if you will try it or not. Just keep in mind the possibilities and restrictions, both of social commerce and of your business.
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