In the ever-evolving landscape of online interactions, social media platforms have transcended their traditional roles as mere conduits for connecting with family and friends. Today, they stand as thriving shopping hubs, reshaping the very foundations of e-commerce. Social commerce, the art of selling goods directly through social media, has become a pivotal avenue for brands to engage and captivate their customer bases.
Rising as primary social commerce arenas, platforms such as Instagram and TikTok are not merely reaching crucial demographics; they are also providing specialized features for seamless transactions. Brands are strategically harnessing the power of these platforms to establish meaningful connections with consumers—effectively transforming social spaces into lucrative selling tools. Welcome to the new frontier of retail!
Curious about maximizing your brand’s social commerce efforts? Keep reading to delve into the world of social commerce and the trends shaping this burgeoning landscape.
Social platforms as shopping hubs
Social media platforms have become a go-to online destination for shoppers. In the U.S. alone, approximately 107 million social shoppers were recordded, and by 2028 the strategy is poised to reach an impressive $150 billion in gross merchandise value. Social commerce is particularly popular with Gen Z and Millennials, with two-thirds of buyers being under the age of 44, and a majority of buyer share going to 25-to 34-year-olds.
Platforms such as Instagram and TikTok offer shoppable posts, allowing customers to use social media to find and purchase new products.
Instagram – An incredibly popular app for social commerce, Instagram lets brands highlight products with beautiful imagery, tag products directly in images and gives the ability to boost posts with ads. The platform also offers in-app checkout, simplifying the purchase process.
TikTok – The video platform is investing a lot in its TikTok Shop, and its popularity with Gen Z makes it a fantastic option for social commerce. It has experienced some challenges with scammers selling counterfeit products, so brands should be sure to perform a thorough competitive analysis and see what’s out there to ensure a strategy that communicates authenticity and value.
Social commerce provides a direct connection with consumers
Social media offers a direct and immediate connection with the target audience and utilizing social commerce as part of the marketing mix provides businesses with real-time engagement opportunities to guide customers through the sales funnel to a successful purchase. Live shopping events where products are sold through video demonstration, interactive Q&A sessions and other social strategies help brands cultivate a relationship with consumers, increasing the likelihood of a sale.
Trends shaping social commerce
As with most digital strategies, social commerce continues to evolve and offer more and more innovative ways to sell online. Here are some technology trends that are defining the space:
Augmented Reality – The integration of augmented reality (AR) allows for virtual try-ons. This improves the user experience as customers will get an idea of what the product might look like either on them or in their home. It can provide confidence in the selection and encourage purchase.
Social Payments – Platforms will offer more robust payment options including digital wallet access, single click to purchase and other capabilities based on convenience and ease of shopping. This will make social commerce even easier and provide a sense of security for consumers as the payment information is being processed by a trusted source, their platform of choice.
Chat – The ability to use in-app chat to connect with businesses about products is a game changer. Chat is a communication strategy Chat is a communication strategy of the future and using it to boost social commerce is a savvy move as customers will get automatic answers without having to leave the shopping environment. Chatbots can be used for simple customer questions and service requests, and then live help can be lopped in if needed.
Here’s a look at an in-app chat (Message) option from IKEA’s Facebook Shop:
Image credit: IKEA
Challenges with social commerce
Social commerce is not without its challenges, and brands would do well to acknowledge that with this opportunity comes the responsibility to protect customers. Privacy and data security are of the utmost importance. Brands should look for platforms that take every measure to ensure consumer data is safe from bad actors.
Additionally, social sellers should be aware that as more businesses embrace social commerce, as with other online shopping avenues, there could end up being high competition and saturation in the marketplace. Brands will need to fully research and vet social commerce opportunities as well as develop engaging creative and messaging to ensure a positive return on investment (ROI).
Innovations on the way
Staying up-to-date with social commerce trends is essential, given the constant evolution of technology. The surging popularity of social commerce provides a fantastic opportunity to blend innovation with growth—infusing fresh ideas into your approaches to be part of shaping a dynamic and thriving social commerce landscape.
AI/ML and Personalization – Artificial intelligence (AI) and machine learning (ML) are growing resources for marketers, with new innovations cropping up at every turn. As social commerce continues to grow, it’s only logical that AI and ML tools will be incorporated. These will allow for personalized product suggestions completely tailored to each individual shopper. This type of attention to detail will lead to greater satisfaction from the audience and a deeper connection with brands.
Blockchain/Crypto Transactions – Blockchain and cryptocurrency continue to be adopted in the business world. This means that consumers will likely want to be able to utilize this digital money and technology soon. As blockchain gains even more momentum and cryptocurrencies find their footing, certain platforms might incorporate them into payment options, and brands should expect to start receiving payment in this manner.
The key to future e-commerce success
The rise of social commerce is reshaping the way businesses engage with consumers. Embracing these online community spaces as shopping hubs will be key. Brands will have a direct connection with the target audience and the ability to harness trends to guide consumers through the sales funnel in a one-stop online shopping experience. Technology innovations will continue to mold the future of this e-commerce strategy, so brands should keep their eyes out for new opportunities as they become available.
It’s clear that social commerce is here to stay, and businesses need to adopt trends and navigate wisely to maintain a sustainable and successful social commerce strategy.
About the Author: Leslie Licano, co-founder and CEO of Beyond Fifteen Communications, is an award-winning public relations strategist, renowned for her ability to spotlight individuals and companies as trendsetters, innovators and newsmakers. As leader of client strategy, Licano steers her team toward breakthrough work through high-concept thinking while serving as chief counsel to the company’s extensive roster of wide-ranging clients. (www.beyondfifteen.com)