September 2024

What is Social Commerce? A Comprehensive Guide for Retailers

 

Last year, 18.5% of total online sales were made through social networks, according to Statista. Social commerce is booming as more brands discover the benefits of selling directly on platforms like Facebook, Instagram, TikTok, and Pinterest.

If you’re thinking about jumping on this trend (and you should), here’s everything you need to know, along with some best practices and actionable steps to help you get the most from it.

What is Social Commerce?

Have you noticed a new way of buying online recently? More brands are selling goods and services on social platforms—this is called social commerce. It’s all about meeting shoppers where they are, like on TikTok, Instagram, and Facebook, offering a seamless buying experience.

Unlike traditional eCommerce, where users leave social sites to complete purchases on an external website, social commerce lets consumers discover, research, and buy products directly within social media apps.

  • How big is social commerce?
    Social commerce is expected to reach $141 billion in the next five years. Globally, platforms like China’s Douyin (TikTok) and WeChat are leading the way, but platforms like Meta (Facebook and Instagram) are catching up fast.
  • Why should my business care about social commerce?
    Social commerce simplifies the buying journey, making it more seamless and engaging. Instead of redirecting potential customers to a website, they can buy instantly from their feed, reducing the steps to purchase and increasing conversions.

How Does Social Commerce Work?

Social commerce is essentially an evolution of eCommerce, where users no longer need to leave social apps to complete a purchase.

Here’s how it works: Imagine you’re scrolling through TikTok, and you see a pair of sneakers you like. Instead of heading to an external store, you can hit “Buy” and complete your purchase without ever leaving TikTok. This frictionless buying process is part of why social commerce is growing so rapidly.

  • What makes social commerce different from regular eCommerce?
    Social commerce allows consumers to research, discover, and buy products all in one place—without hopping between apps or websites. It also leverages social proof (e.g., comments, reviews, likes) to help customers feel more confident in their purchases.
  • What platforms are best for social commerce?
    • TikTok: Engaged user base, great for short, creative video content.
    • Pinterest: Visual-first platform, particularly strong with high-income and luxury audiences.
    • Facebook: Allows businesses to set up shops and tag products, reaching over 3 billion users.
    • Instagram: Integrated shopping features with highly engaged users.

Best Platforms for Social Commerce

Not all social media platforms are created equal when it comes to social commerce. Choosing the right platform depends on your audience, the type of products you sell, and your overall brand presence.

  1. TikTok:
    TikTok’s combination of viral short-form video content and built-in shopping tools makes it a prime platform for social commerce. TikTok’s user base is highly engaged, especially with younger demographics, making it ideal for brands targeting Gen Z or Millennial shoppers.

Pro Tip: Use TikTok’s ad formats, such as In-Feed Ads, and collaborate with influencers to reach a wider audience.

  1. Pinterest:
    Pinterest is a visual discovery platform with a highly engaged and high-income user base. Research shows that 60% of luxury shoppers use Pinterest to discover high-end brands. Pinterest’s native shopping tools allow users to purchase without leaving the app.

Pro Tip: Use rich pins and promote user-generated content to tap into Pinterest’s search and recommendation algorithm.

  1. Facebook:
    Facebook’s Shop feature lets you set up an online storefront and tag products in posts, reaching a global audience. With billions of users, Facebook remains a dominant force in social commerce.

Pro Tip: Use Facebook’s targeted advertising options to reach highly specific audience segments.

  1. Instagram:
    Instagram’s Shops feature lets brands display and sell products within the app. With over 90% of users following at least one business, it’s a great platform for building brand awareness and driving sales.

Pro Tip: Use Instagram Stories and Shoppable Tags to engage users and encourage direct purchases.

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Benefits of Social Commerce for Your Business

Here are some key benefits of leveraging social commerce:

  1. Tap into Large User Bases:
    Social commerce platforms already have billions of users actively engaging with content. This means a vast, pre-built audience for your products.
  2. Perfect for Small Businesses:
    According to research, 59% of social buyers are more likely to support small and medium-sized businesses on social media than through traditional eCommerce channels. This levels the playing field for smaller brands.
  3. Engage in Personalized Interactions:
    Social commerce allows you to build meaningful relationships with your audience by responding to comments, answering questions, and offering personalized customer service.
  4. Gain Access to Valuable Data:
    Social media platforms provide valuable insights about your audience, including their behaviors, preferences, and engagement patterns. This data can help you refine your strategy and tailor your offerings.

Best Practices for Social Commerce

To make the most of social commerce, consider these best practices:

  1. Choose the Right Platform for Your Audience
    You don’t need to be on every social media platform. Use data to understand where your audience spends time and focus your efforts there.
    Actionable Step: Use platform analytics to review engagement and demographics.
  2. Put Consumers at the Heart of Your Content
    Refer to your customer personas and address their specific pain points or needs through your social commerce content.
    Actionable Step: Create content that solves your audience’s challenges and showcases your products as the solution.
  3. Engage and Build Relationships
    Use social commerce to answer questions, provide personalized support, and build stronger connections with your audience.
    Actionable Step: Respond to user comments and messages quickly to create a sense of community.
  4. Use Influencer Partnerships
    Partner with influencers in your niche to expose your products to new audiences. Influencers can create authentic content that resonates with their followers.
    Actionable Step: Look for influencers who align with your brand values and create genuine content that appeals to their audience.
  5. Emphasize Visual Content
    Social commerce is all about visuals. Use high-quality images and videos to showcase your products in action.
    Actionable Step: Invest in professional photos and videos that highlight your products from multiple angles.
  6. Leverage User-Generated Content
    Encourage your customers to share their own photos and videos of your products. This not only boosts social proof but also provides you with authentic content.
    Actionable Step: Run contests or challenges to get more user-generated content.

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Social Commerce Examples in Action

Nike
Nike’s social commerce strategy focuses on storytelling and user-generated content. They use Instagram Stories to showcase new product launches with simple, engaging visuals that let the images do the selling.

Blue Lagoon Skincare
Blue Lagoon Skincare leverages Facebook for social commerce. By using checkout-enabled links, the brand streamlined its customer experience, increasing clicks and boosting international sales.

@JustNina on TikTok
Influencer @JustNina collaborated with Wellgard supplements, allowing viewers to buy directly from her TikTok Shop. This is an example of how influencers can drive sales through social commerce.

The Future of Social Commerce

What’s next for social commerce? Trends like augmented reality (AR), virtual dressing rooms, and livestream shopping are set to revolutionize the shopping experience.

  • AR Technology:
    AR lets users visualize products in real-world environments before buying. Ikea’s AR tool allows users to see how furniture looks in their homes, and this type of tech is expected to grow in social commerce.
  • Virtual Dressing Rooms:
    Brands like Gucci and Gap already use virtual try-ons to boost sales by allowing users to see how items fit before purchasing. Expect this trend to expand.
  • Livestream Shopping:
    Livestream shopping allows businesses to showcase products, demonstrate use, and answer questions in real time, increasing engagement and conversions.

FAQs

  • What is a social commerce platform?
    A social commerce platform is a social media site that allows users to buy products directly without leaving the app. Examples include Instagram, TikTok, and Facebook.
  • How big is social commerce?
    Social commerce is expected to reach $6.2 trillion by 2030, with an annual growth rate of over 30%.

Conclusion

Social commerce is not just a trend—it’s the future of online retail. By integrating your brand into social media platforms and following best practices, you can create a seamless, engaging experience for your customers and drive sales like never before.

 

 

 

 

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