How social commerce is shaping the future of retail and how businesses can leverage it
The way we shop and interact with brands has undergone a remarkable transformation due to the evolution of social media platforms. What was once used to build connections and foster community has turned into powerful hubs of social commerce.
Social commerce refers to the merging of social media and e-commerce, where online shopping experiences are integrated within social media channels like TikTok, Instagram, Pinterest, or Snapchat, to facilitate and enhance the shopping experience for consumers.
If you're new to the concept of social commerce or have yet to explore its potential, read on to find out what makes it different from e-commerce shopping, how it works, and why it holds significant value for businesses.
What is social commerce?
At its core, social commerce is the fusion of social media and e-commerce. It involves leveraging popular social media platforms like TikTok to create seamless shopping experiences. Instead of having to navigate to separate websites or online stores, social media users are able to discover, check reviews and purchase products within the app.
What makes social commerce different from e-commerce?
Social commerce sets itself apart from e-commerce through its integration with social media platforms and leveraging of their infrastructure. Unlike traditional online shopping, which typically took place on dedicated e-commerce websites or brick and mortar stores, social commerce takes place within the familiar environment of social media.
It taps into user-generated content in a way e-commerce brands of the past were unable to do without the use of influencers. Consumers can now access and contribute to reviews without leaving their favourite social media app. This social proof helps consumers make informed decisions based on the experiences and opinions of other shoppers, adding an extra layer of trust and credibility to the shopping process.
In addition to social proof, personalisation and targeting are key features of social commerce. Social media platforms collect vast amounts of data, enabling targeted product recommendations and advertising. This ensures that users receive suggestions they are interested in based on their preferences and interests, enhancing their overall shopping experience.
How does social commerce work for businesses?
Social commerce integrates various e-commerce functionalities into social media platforms, making the shopping process more convenient and engaging. It allows brands to create posts featuring products, accompanied by product descriptions and a link to purchase in your size and favourite colour.
You might have already interacted with social commerce without knowing it, but here are four ways businesses can utilise it:
Businesses can create posts featuring products, accompanied by detailed descriptions and links to purchase them.
Social media influencers can create engaging content, showcasing products and providing links or discount codes for followers to research further and purchase.
Read about customer experiences with products, helping them make informed product improvements.
Deliver personalised recommendations based on individual preferences, browsing history, and demographics. This creates tailored shopping experiences, increasing customer satisfaction.
Why is social commerce valuable?
Social commerce holds significant value for businesses due to its unique advantages and ability to enhance their operations and growth opportunities. This is especially true for small businesses capitalising on platforms like TikTok by sharing their founder stories, product creation from start to finish, and a sales link to purchase within the app.
This ability to connect and sell with their audience has meant that some small businesses have thrived through the use of social commerce.
Social commerce has emerged as a powerful force in the world of online shopping. By bringing social media and e-commerce together, it transforms the way we discover, engage with, and purchase products.
As social commerce continues to evolve and shape the future of retail, it opens up new opportunities for businesses to connect with consumers.
