Are you familiar with the definition of social commerce? Have you ever heard or read its meaning? How about its features and categories? We will find out in this article the answers to these questions.
Read more to learn more.
The Definition of Social Commerce?
In 2005, Yahoo used the term “social commerce” for the first time. This is to describe combined shopping tools. That also includes the shared pick lists, user ratings. And user-generated content (UGC) sharing device, and the product information.
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Social commerce is electric commerce (e-commerce) that uses online social networks. This also helps to promote, buy and sell services and goods.
Social commerce uses ratings, online communities, and social advertising.
Facebook commerce (f-commerce) is one of its examples. In f-commerce, products are posted and shared within Facebook to sell and buy it.
Social commerce refers to new online marketing strategies. Also, it refers to retail models that have peer-to-peer communication. In that way, social networks will establish and the sales will boost.
Social commerce is where shopping and social media meet. It is a combination o social networking and e-commerce. This will also let the business owners take part in the selling and marketing of products and services.
What are the defining features associated with social commerce marketplaces?
- The sellers are not companies. They are individual people.
- Since it is a personalized online store, the sellers are involved in the creation and assortments of products.
- The sellers can put hyperlinks between their personalized and custom-made stores.
- Sellers’ sales made by their personalized stores are paid commissions.
Individuals created these personalized shops all connected to one network. Social commerce is also about people connecting with a bunch of people. And they are doing that for their brands and categories.
Categories of Social Commerce
Social Shopping
This refers to consumers that use social networking sites in sharing their shopping finds, bought items, and deals. Not that, but also coupons, want lists, and product reviews.
Group Buying
This happens when a group of purchasers agrees to buy something at a lower discounted price.
User-Curated Shopping
In these social shopping sites, users shares and creates lists of services and goods. I that way, consumers can shop from it.
Peer Recommendations
This occurs when the previous buyer left a good product or service review.
Social Network-Driven
This refers to the sales from social network websites such as Twitter, Pinterest, Facebook, etc.
Peer-to-Peer Sales Platforms
This refers to buying and selling products and services without a third-party intermediary. They transact, buy, and sell it to each other.
Participatory Commerce (P-commerce)
This refers to a sales model. This lets the consumers engage in the design, funding, and selection of the goods they buy. They will feel at home when you involved them in the creation of products.
The most common form of p-commerce is the customization of the client’s product. The other one is users can be the ones to decide which product a seller should offer.
Experts say that p-commerce is the future of online shopping. And indeed a perfect way to increase the bottom line.
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