Social e-commerce enables businesses to market their products and services directly through social media networks, enabling users to buy, sell, or offer their services from home.
Social media isn’t just about taking pictures and posting regular updates. Rather, it has emerged as a go-to tool for brand building and customer service in the commercial sector. It allows buyers to buy and consume things that match their preferences and personalities. This is the main reason why content-driven commerce, commonly referred to as social commerce, has become so popular.
As a subset of e-commerce, social commerce enables consumers to connect with companies, view items, and make purchases directly through social media platforms. That’s why most companies nowadays are trying to figure out how to incorporate social commerce into their operations.
A study found that over 50% of millennials use social media to make online purchases. Moreover, it is being said that this sector can grow close to $20 billion by FY25, at a compound annual growth rate (CAGR) of 55–60%.
What makes social commerce different from social media marketing?
In contrast to social media marketing, social commerce allows buyers to find products while scrolling through their feeds. The comments and DM interactions with actual users about the viability of the product can be considered as product reviews.
Thus, you need not do extra research about the product before making the purchase. Additionally, social commerce allows users to make their purchase straight from social media applications.
What are the benefits of social e-commerce?
- An ever-increasing pool of GenX and Millenial:
The growth of social commerce in India shows no signs of slowing down anytime soon. Millennials spend a lot more time online after social media and E-Commerce started merging together. Thus, as a seller, it is a fantastic opportunity to reach these consumers, even without being an expert social media marketer.
All you need is an engaging brand page with relevant content, eye-catching photographs, and the proper keywords and hashtags.
- The opportunity is too huge to miss
Research shows that the majority of millennials use social media to keep up with brands. Additionally, businesses today have teams dedicated completely to social media operations. The social commerce sector is anticipated to increase by ten times in the next five years as more people gravitate towards this new trend. Consequently, if you prevent your business from going online, you might end up losing far more than you expected.
- Shopping made easier than ever
Millennials today want to buy everything that their favourite influencers use. The biggest challenge here is to look for the products online on various websites and then pay via a different app. However, purchasing has become as easy as “see it, like it, buy it” since social commerce took over.
This has been made feasible by making applications simpler to use, a wider audience reach, and a user growth of over 20% annually. Hence, it shouldn’t come as a surprise that more individuals are currently using social media platforms for product research and purchases than ever.
- Social Commerce is already ‘social’
Building trust is crucial for the success of social commerce. Even today, it might be challenging for purchasers to believe the reviews on a seller’s website. But in the case of social media, users make buying decisions much faster since social commerce has built-in social proof. Additionally, companies must always advocate for themselves. All the labour is provided by user-generated content, such as likes, comments, follows, and shares.
The more individuals identify with and support your products, the more reliable your brand is. Additionally, social shopping gives customers the chance to communicate with a real user of the product via direct messages.
- Social Commerce is for everyone
Social commerce has proven effective in enabling sellers from the rural areas of the nation to earn a decent livelihood. Anyone searching for supplemental income, including housewives, students, or other microentrepreneurs, can join this newest trend. Moreover, to be a part of this journey, no professional training is even required.
Which Social E-Commerce Platform should you start your business with?
While Facebook and Instagram are at the forefront of social commerce, other social media platforms like Pinterest, TikTok, and Snapchat are also enhancing their presence.
Every platform has a distinct function and draws a certain audience, with its own competitive advantages. Tiktok had a large market share in this area earlier in 2021, but now Instagram and other competitors have taken over. So in an ideal situation, one can always start with Facebook and Instagram and then gradually progress to other platforms.
The Bottom Line
Social eCommerce is undoubtedly here to stay. Social e-commerce empowers an individual to market his own products and services while also providing smaller enterprises with an additional advantage over their bigger counterparts.
It enables vendors to design customised marketing campaigns that target particular demographics and take into account the kinds of goods and services they would want to provide. Although there are many advantages, one thing is certain: social e-commerce is revolutionising the retail environment and will do so for years to come.
Therefore, if you want to launch your social e-commerce business soon, a reliable payment gateway like PayU can be your companion. With PayU giving you access to on-demand settlement for your customer’s payments, you get to focus more on growing your business and providing more for your consumers. Why are you waiting? Get started with social e-commerce right away!
Frequently Asked Questions
In a social e-commerce business model, a customer has access to the items listed by various companies. User-generated likes, comments, and reshares on a brand’s post give it more weight during the decision-making process. Customers may also locate a live user of the product and quickly debate its potential via DM. Once they are convinced, customers may buy the product immediately from the social networking app without even leaving the platform.
A social commerce platform enables customers to interact with a company while using social media platforms as an effective customer support channel where issues can be raised and addressed. Brands also find it easier to market their products because a large audience is already present on social media platforms.
By being present where their consumers spend their time online, social commerce creates a smooth marketing route for start-ups. Social commerce also makes it simple for customers to find new items and complete their purchases, eliminating any doubts that may result in a customer changing his mind and not buying a product.