Social commerce is taking the business landscape by storm. You’re probably thinking of joining the bandwagon. Why is social commerce important? One reason is the global social commerce market size is expected to reach USD 584.9 billion this year. Sounds great, right? Before discussing the question “why is social commerce important?”, let’s first have a quick overview of its meaning.
Definition
It is the process of selling products directly on social media. The entire shopping journey – from product discovery to comparison to payment – all happens on the social media platform. Instagram, Facebook, and Pinterest are currently the leaders in this practice. However, other platforms are currently making moves to implement this practice, too.
Remember that social commerce and eCommerce are not the same. eCommerce refers to shopping via a website or dedicated branded app. Hence, we can look at it as a subset of eCommerce.
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Furthermore, it is also not social selling. Social selling means cultivating relationships on social media to generate more leads.
Why is social commerce important?
Listed below are the reasons why it is worth undertaking.
Social commerce removes friction
It offers only three steps in the consumer journey: see it, click it, buy it. Keep in mind that every click lessens the chance of generating a purchase. Hence, social commerce teaches brands to remove unnecessary steps away and just bring the shopping right to social.
There’s some serious money to be made
As mentioned at the outset, you’re looking at some serious money in this practice. If you want a chunk of such huge money, it makes sense to sell your goods where your customers are already hanging out. 81% of shoppers go to Instagram and Facebook to research products. Meanwhile, 48% of Pinterest users view shopping as a top priority.
Millennials and Gen Z like to shop on social media
If your target audience is 18 to 34-year-olds, there is no better place than social media to sell your goods. In the US, 48% of Internet users in this age group made a purchase on social media in 2019. Meanwhile, 27% are interested in giving it a go. The COVID-19 pandemic has made social media the modern mall so it’s time to open up shop!
It makes shopping a social experience
Many shoppers say that shopping has always been a social experience. The typical eCommerce setup can’t fulfill that. However, social commerce makes the experience much more interactive. For instance, consumers can easily ask their friends about purchases, show off their new clothes, and give reviews on the products.
Hyper-target your prime audience
Social commerce gives brands the opportunity to leverage data so they can personalize and target their advertising. It enables you to offer specific and ready-to-buy products in front of the specific people who would love them. Typical e-commerce and marketing cannot offer such benefits.
These factors answer the question “why is social commerce important?” Of course, this must not be your sole digital strategy. Nevertheless, it is exciting to see what it holds for us in the future.
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