Social Commerce: Is It the Next Bandwagon?

Social commerce happens when savvy marketers take social media and combine it with the best of e-commerce. It is like Facebook and Amazon combined and giving birth to a hybrid.

As of 2020, social commerce is an $89.4 billion market, and it is expected to reach $604.5 billion in the next seven years.

If you are an existing Amazon seller with excellent products to sell, incorporating Social Commerce into your marketing strategy can be your best move in 2021. 

We at Sellers Launch are more than happy to help you understand Social Commerce and how it can help your brand if you include it in your marketing campaign. Just reach out to us at https://www.sellerslaunch.com/Book-a-Meeting-Page and we will be more than happy to schedule a meeting with you.

Curious about how to get a piece of the Social Commerce pie? Read on!

What is Social Commerce?

Social commerce utilizes networking platforms such as Pinterest, Instagram, and Facebook as effective media to boost product awareness and sell products and services. A social commerce campaign's success can be measured by the level to which consumers engage with the company's marketing campaign through retweets, likes, and shares. In short, social commerce is the process of selling products directly on social media.  

The whole concept of social commerce revolves around streamlining the entire shopping experience; from product research and its discovery up to the checkout process. All of these steps seamlessly take place on a single social media platform. 

For now, only Facebook, Pinterest, and Instagram in the Western Hemisphere allow for social commerce in their social apps. 

Social Commerce in China

Why did I say Western Hemisphere? Because social commerce is already making waves in other areas of the globe while everyone in the western world is just starting. China's social commerce market is currently valued at $300 billion and it is expected to grow stronger in the coming years. 

According to Statista: "China saw sheer growth in its social commerce in the past five years. The number of social commerce users reached 713 million in 2019, while its market size was estimated to surpass two trillion yuan. The social commerce industry created around 48 million jobs in China in 2019, and the number would continue to grow."

                Image courtesy of statista.com

The marketing concepts being used in Chinese social e-commerce range from the comparable strategies used by western social media influencers to the unique if not unheard of in the western market. Let's say that when we talk about marketing products through the use of user-generated content, the Chinese social media apps have successfully integrated the sales process, creating a flawless consumer experience.    

Something to Think About: 

• Social commerce in mainland China was valued at $186.04 billion (1.285 trillion RMB) in 2019 and makes up 11.6 percent of retail e-commerce sales for the country. 
• Chinese social media platforms are more multifunctional and have a broader purpose than their western counterparts.
• The Chinese market has seen the rise of a new consumer class-- the affluent, sophisticated, and highly connected millennial-- that has helped grow the e-commerce revolution in China.

Social Commerce vs. E-Commerce

e-Commerce is a web, app, and sometimes brand dedicated shopping experience. It allows a user or online customer to purchase items online. This is where the similarity between e-commerce and social commerce ends. Social commerce, on the other hand, creates a customer experience inside the social media experience, producing a more engaging, informed, and in some cases, entertaining purchase experience. 

Interested in Joining the Social Commerce Bandwagon? 

Still, wondering if social commerce is the next great thing for your brand? Let me give you a few more reasons to hop on the bandwagon.

1. A Consistently Growing Captive Audience

Social media usage is the world's favorite pastime. As of 2020, over 3.6 billion people were using social media worldwide, a number projected to increase to almost 4.41 billion in 2025. Social media users, on average, spend 144 minutes per day on various messaging apps and social media platforms.  

One of the biggest challenges for any brand is finding ways to reach and sell to its target audience. A constantly growing and highly accessible platform is an opportunity that should not be ignored. 

2. Seamless Customer Experience

From product discovery to purchase, social media stores create a fluid, if not seamless, and effortless consumer experience. The product is there; everything you need to know is there. And you have nowhere to go but to checkout. 

Needless to say, every click of the mouse, every scroll, and every click of a tab, is an opportunity for a potential customer to change their mind. Suppose customers have to go from your social media ad or post to your website to purchase the product, somewhere in between those clicks. In that case, a distraction can make your customer lose his attention and change their mind, resulting in a missed sales opportunity.

Social commerce streamlines the purchase process and makes sales conversion seems effortless.

3. The Online Market is Growing Rapidly 

Hard facts and numbers can prove it. Researchers already forecasted that e-sales would reach $735 billion over the next three years. If you want to be a part of this growing market, it is wise to bring your brand to the online places where your target audience is hanging out. 

Everyone knows that almost all consumers research products on Instagram, Facebook, and even Pinterest. Social media is the place to be.  

There are plenty of reasons why you should include social commerce in your marketing campaign. I can give you more, but I think the reasons already cited should be enough to propel you to jump on the bandwagon. 

What is the Best Social Commerce Platform for Your Brand

There are currently just a few of the top social platforms that offer social commerce: Facebook, Instagram, Pinterest, and Snapchat. You have to choose the best platform to fit your needs, target audience, and brand profile.  

If you need help setting up a Social Commerce campaign, we at Sellers Launch are more than happy to help. Just reach out to us at https://www.sellerslaunch.com/Book-a-Meeting-Page and we will be more than happy to schedule a meeting with you. We hope to hear from you soon!