E-Commerce is a Subset of Social Commerce

Why is E-Commerce a Subset of Social Commerce?

Many wonders why E-Commerce is a Subset of Social Commerce in the new era of digital. After all, both are concerned with making the sales.  

But this view is wrong. There are three reasons why Social Commerce is a Subset of E-Commerce:

Why is E-Commerce a Subset of Social Commerce?

  • Social Commerce Is a Subset of Digital Commerce

Social Commerce can be defined as the use of social media platforms to conduct E-Commerce transactions and activities. So it is simply the digital form of traditional commerce. The application of digital technologies to marketing represents the new generation of businesses. So, it is only natural that Social Commerce is a subset of Digital Commerce, which is a subset of E-Commerce.


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  • Social Commerce Has Several Business Models

The traditional E-Commerce business model involves the sale and purchase of goods and services through electronic means, such as the Internet and mobile phones. But there are other models such as Enterprise Social Networks, Widget Stores, and Customized Communities, which are not included in the traditional E-Commerce business model but fall under the purview of the Social Commerce business model. So, like E-Commerce, Social Commerce also has several business models.

An Engagement Model Can replace a Transactional Model in Social Commerce.

An engagement model in Social Commerce replaces the transactional model in E-Commerce because it involves socializing beyond transactions only, strengthening the relationship between customers and businesses and eventually leads to sales. Thus, this engagement model can be termed as a subset of the transactional one in E-Commerce.

Challenges of E-Commerce

E-Commerce comes with challenges that include:

1. New platform without “trust” culture

The old business model of physical commerce was based on the trust culture between customers and sellers who personally knew each other. But in the new digital economy, buyers do not know sellers and trust them blindly. They look for reviews, ratings, and other feedback from their peers before taking any decision to purchase. So, E-Commerce has to build an equivalent trust culture for its platforms.

2. New platform with technical barriers

In the old economy, traders had to handle only a few people at a time. But in the new digital economy, they have to deal with millions of people, which is a big challenge for them because of the technical barriers involved.

3. New platform with borderless

Unlike traditional trade, E-Commerce is borderless as it does not restrict buyers or sellers from different countries and regions. So, they face language barriers and cultural differences while doing business in different regions of the world.

E-Commerce involves the processing of credit card payments, which is a big challenge for it. In the traditional economy, cash payments were much easier than credit card payments. But in the digital economy, credit card payments are widely used because of their convenience and flexibility. But this convenience comes with a security concern for which E-Commerce platforms have to make adequate arrangements.

4. New platform with privacy issues privacy is the biggest concern for E-Commerce businesses

It happens because it involves collecting and storing sensitive information about buyers, such as their credit card numbers and other financial information. That is why many sellers do not want to provide private information to E-Commerce platforms like Facebook, Twitter, Google+, etc.

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