Have you noticed a new way of buying online recently? You may see more brands selling their goods and services on social platforms. It’s called social commerce, and it’s all about meeting shoppers where they are, like on TikTok or Instagram.
Don’t expect this trend to go away anytime soon.
Social commerce is on the up and expected to hit 141 billion dollars over the next five years.
Right now, Chinese platforms like Douyin and WeChat are currently leading the way. And big names like Meta have jumped in on it, enabling social shopping through its Instagram and Facebook channels; it anticipates revenues of approximately 94 million dollars annually.
Certainly sounds promising, doesn’t it? But what does it mean for your business, and how can you get the most from it? That’s what I’m talking about today.
Key Takeaways
- Social commerce is an increasingly popular trend, with an expected market value of 141 billion in the next five years.
- Chinese platforms like Douyin and WeChat are leading the way in social commerce, with big names like Meta also joining in.
- Social commerce allows users to discover and purchase products directly on social media platforms such as Instagram, Facebook, TikTok, and Pinterest, providing a seamless buying experience.
- Best practices for social commerce include working with influencers to get your brand in front of a new audience, choosing the right platforms for your audience, and putting customers at the heart of your content.
- You can use social commerce to build communities and offer personalized support to buyers.
How Does Social Commerce Work?
Social commerce is basically an evolution of e-commerce. Instead of heading to the Nike online store, for example, users can discover and buy products without leaving their favorite platforms, like Instagram, Facebook, TikTok, and Pinterest.
Here’s how it works.
Imagine you’re scrolling through TikTok, and you see a hot new pair of sneakers. If you want to purchase, you just hit “Buy” and complete your order right there on the site. It allows the type of seamless buying experience we all love, and that’s part of what’s making it grow like wildfire.
Social commerce is unique because it allows consumers to research, find, and purchase products without hopping between platforms. This makes for a more engaging experience, as shoppers can reach out directly to brands or businesses and get feedback from other social users before buying, allowing them to purchase confidently.
Social commerce also provides social proof and allows you to share visual and interactive content, such as live streams, to showcase products.
Best Platforms for Social Commerce
Wondering what the best platforms for social commerce are? Here’s a quick breakdown.
- TikTok is a top spot for social commerce because of its large, engaged user base. With its short video content and ready e-commerce integration, TikTok has become a go-to platform for social commerce. It also allows businesses to tap into its vibrant and interactive community, driving sales and brand awareness, but brands will need to take another look at their social media marketing strategies if the proposed U.S. TikTok ban goes ahead.
- Pinterest is a great social commerce platform because it’s highly visual, has a large user base, offers targeted advertising options for businesses, and attracts a high-income audience. Three in five luxury shoppers use Pinterest to research high-end brands, showing that Pinterest has users who are receptive to luxury brand messaging and intentional in their shopping.
- With over three billion active users, Facebook leads the pack in social commerce. Its simple setup allows businesses to create stores on Facebook and Instagram while product tagging enhances visibility.
- Instagram’s Shops make it easy for brands to display and sell products within the app, enabling a straightforward buying experience. Plus, the platform has engaged users, with 90 percent actively following at least one business.
Benefits of Social Commerce For Your Business
Using social commerce has various benefits for your business, such as:
- You can tap into the large user bases on social media to find new customers and boost sales.
- Social commerce is perfect for smaller brands. Research shows that 59 percent of social buyers are more likely to support small and medium-sized companies on social commerce than through e-commerce, making it a great option for smaller businesses to build their brand and increase sales.
- Social commerce enables you to engage with your audience in a more personalized and interactive way, while building a community around your brand and developing brand recognition.
- Access to data. Analyzing your data from your chosen social media channels lets you see what strategies are working and tweak them if needed.
- Social commerce lets you interact with customers and get feedback, providing valuable insights to help your business improve its products or services while giving you a global reach.
- Finally, social commerce blends well with user-generated content. Engaging your audience with user-generated videos, images, creative challenges, and reviews gives you authentic content to engage your audience.
Best Practices For Social Commerce
Including the following best practices into your social commerce strategy can enhance your brand’s visibility, drive sales, and create a positive and interactive online shopping experience.
- Decide which social media channels are best for your business. You don’t need to be on every site, just where your audience hangs out. You can start to do this by reviewing your audience’s demographics, and which social media sites are likely to appeal to them. You can also use data from your social media platforms to measure engagement with your current audience
- Put consumers at the heart of content: Refer to your customer personas to learn their common challenges and offer products or services that help.
- Engage and build relationships: Use social commerce to engage more directly with your audience by answering questions, providing personalized support, and responding quickly to queries.
- Use influencer partnerships: Work with influencers in your niche who align with your brand values to get your business in front of a fresh audience.
- Emphasize visual content: Social commerce is all about visuals, so focus on quality, professional images that show your products from all angles.
- Use your data: View your social media analytics to understand customer behavior, preferences, and trends, and do a social media audit to further refine your targeting.
Social Commerce Examples In Action
How are other brands marketing themselves in this relatively new sales format? Here are a few social commerce examples to inspire you.
Rather than going for the hard sell, Nike takes a more subtle approach. First, it uses storytelling to create compelling content to drive traffic. For example, it shares behind-the-scenes pieces, inspiring stories, and striking visuals to draw its audience in.
Here’s an example of one of its images from Instagram Stories. It pretty much lets the image do the selling, with no lengthy sales text and a simple CTA to get browsers to click through.
Nike’s social commerce strategy also involves working with influencers, integrating shopping features for a smooth purchasing experience, using personalized recommendations, and targeting advertising.
For example, Nike has endorsement deals with 21 NBA stars, and in an awesome marketing move, it once used Snapchat to advertise Air Jordans during an NBA All-Star game.
Then there is the Icelandic company Blue Lagoon Skincare, which uses Facebook as its sales platform.
By using checkout-enabled links, the brand gained 1.2 times more clicks, streamlined the customer experience, and transformed the way it connects with international buyers.
Another example is fashion and beauty influencer @justnina from TikTok. In one video she collaborated with Wellgard supplements so viewers can buy directly from her TikTok Shop.
The Future of Social Commerce
Which social commerce trends do you need to keep a keen eye on? Let’s look at some of the top trends shaping the future of social commerce.
Advanced technologies such as augmented reality (AR), virtual dressing rooms, live streams, and AI integrations in social commerce have the potential to revolutionize the way we shop online.
AR technology, like this Ikea example, allows users to visualize products in real-world environments for an immersive and personalized shopping experience.
It’s already used heavily in e-commerce, and AR in social commerce may well be the next big thing.
Virtual dressing rooms enable customers to “try on” clothing and accessories from the comfort of their homes, enhancing the online shopping experience and reducing the likelihood of returns.
Brands like Gap and Gucci already use it in e-commerce, and retailers can increase sales by up to 20 percent with virtual try-ons.
Livestream Shopping is already in use on social media. These live streams allow product demonstrations, product launches, expert advice, and Q&As, and can increase conversions.
Here’s an example of TikTok’s LullaBellz Livestream:
What’s so good about this example?
The special offers (free shipping and discount) are sure to appeal to already interested buyers. Highlighting the number of products already sold makes it feel sought after, and the “buy” button helps secure the click-through.
Remember these tips when you’re selling on social.
FAQs
What is a social commerce platform?
A social commerce platform is a social media site that allows users to buy and sell products or services directly from the app. TikTok Shop is a popular example.
How big is social commerce?
Huge, and it’s going to get bigger. It’s likely to reach 6.2 trillion dollars by 2030. Before then, forecasts suggest the sector could grow by over 30 percent a year.
Conclusion
Not long ago, it was all about e-commerce, but now that’s changing. Consumers are always looking for new ways to buy, and social commerce meets those needs.
It delivers the simple experience shoppers crave and allows brands to engage directly with them, making it a definite win-win for consumers and businesses alike.
The future looks bright for social commerce. As more consumers flock to it, brands need to consider where it fits in their marketing strategy, understand best practices, and implement complementary practices like SEO for social media to get the most from it.
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