Risks of Social Commerce to Brands and Customers

True, social commerce has a lot of advantages that is why many brands are now into it. But knowing the risks of social commerce is also crucial. This will help brands see whether they can overlook these. Also, risks are present for customers.

What, then, are the risks of social commerce to brands and customers? Read on to know more.

Risks of Social Commerce to Brands

Brands Lose Controls Over Their Customers

True, social commerce offers a lot to brands. But over time, social networks are taking over the buying process. Thus, the more power they take away from brands. How?

When a customer buys, it is the social network that records their details, not the brands. Thus, it is hard for brands to know their customers. As a result, it is hard for them to personalize their offers and more. Aside from that, their customer’s data could be sold off to their rivals by the social network. Yikes!

Brands Lose Control of Products and Pricing

Social networks can also control the pricing. How? Today, customers are presented with a lot of options. So, they can easily compare a brad’s pricing to another. Thus, these brands will need to keep up with the pricing on these sites.

Today, big e-commerce names like Amazon are also planning to add social media into their model. Thus, this poses the risk for product pricing to change.

Limited Reach

True, the reach of social media is wide. But this mindset can be prone to overestimate the power of these sites. How so?

A lot of brands may think that social media users are rising. But the truth is, there is not that much increase in unique users. Thus, the reach of social media is, in truth, limited.

Limited Possibilities

Yes, social commerce can open new markets for brands. But these sites are made for socialization, not buying. Thus, many users are not out to buy anything on these sites. The buying intent is low and not everyone is clicking that “buy” button. As a result, social commerce offers limited possibilities.

Risks of Social Commerce to Customers

Not Getting Real, Engaging Posts

For brands, they are posting authentic and engaging content. But for most customers, they disagree. Many of them think that the content brands post does not resonate with them.

Brands are also missing the spot. Customers are scattered on every social media site. But brands only focus on one area. Thus, they are not marketing where their customers are.

Their Data is Unsafe

Most customers distrust social media sites. They think that these sites cannot protect their personal data. Also, they think that they have bad motives when asking for bank details. Various data breaches on these sites are also not helping to clear these issues. Because of that, customers leave shopping out of social media.

Risks of Social Commerce: Can You Overlook It?

What do you think of the list above? Do you think you can overlook the risks of social commerce? Would you still try it out? Or not?