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Social commerce: How it works and why you should care in 2021

Social Commerce

In this day and age, the world has seemingly shifted from its traditional ways into a more digital-centric lifestyle. It is truly a big transition when the things that people used to do physically can now be done through one click. Ordering food, going shopping, booking a ride, and even buying your groceries online defines the lifestyle of today’s customers/  

This is especially true when the COVID-19 pandemic struck and everyone, especially businesses, looked to digital platforms to adapt to the new normal. This phenomenon is now emerging across digital platforms known as social commerce.

Now, more and more businesses are all aboard to take advantage of this huge opportunity.

What is Social Commerce?

5 c's of social commerce

Social commerce is the form of driving sales through social networking communities. To put it simply, it is where people directly buy or sell products or services from a digital or social media platform. This has elevated the purpose and use of social media into becoming a platform that not only encourages users to look for things to purchase, but also to buy without leaving the app – a move that a social media management company must embrace for future social media campaigns.

Some experts note how social commerce has become one of the driving factors that increase the marketing revenue of businesses. A study showed that 8 in 10 businesses are projected to shift selling their products or services through social platforms in the next three years. In the year 2020, social media giants such as Facebook, Instagram, and Pinterest modified their commerce tools to accommodate online sellers and streamers. These modifications opened new doors for digital storefronts that can be easily found organically or boosted through advertisements.

E-commerce vs. Social Commerce

Most businesses sometimes mistake e-commerce to be the same as social commerce. There’s a slight difference to both, however. E-commerce encompasses activities that involve buying and selling products and services through the internet.

More than 50% of internet traffic come from mobile devices. Ironically, mobile users have higher chances of cart abandonment compared to desktop users. To reduce cart abandonment, restructuring the checkout process is key. 

This is where social commerce enters the picture – it reconstructs certain drop-off points that may lead to abandoning transactions.

Social Commerce Platforms You Can Try in 2021

Big social media platforms like YouTube and TikTok are starting to include ‘shop now’ features or buttons in their pages. Twitter is also exploring ‘shop now’ features on its page with its new format.

However, here are the best platforms to add to your arsenal if you want to test out possible revenue channels.

Facebook

facebook

Considered to be the biggest and most popular social media platform globally, Facebook offers lots of hidden gems as a social commerce platform. It also has a social commerce feature known as ‘Facebook shops’ that is easy to access – shops can quickly be established and hosted with your business profile.

If you also have a partner platform, then it will be easy to sync it to the page and have the inventory list readily available. Otherwise, products can be manually listed on a spreadsheet.

The ‘Facebook Shop’ button on the mobile app also filters and recommends products based on the users’ preferences. They can also immediately complete the purchase through the app or through the desktop. Sellers can also directly interact with buyers through the messenger feature.

Instagram

instagram

The feature ‘Instagram Shopping’ is directly synced and linked with the ‘Facebook Shop’. To sync this, your Instagram business profile needs to be linked with your business profile on Facebook. Once that is done, the product list from your Facebook business profile will be visible on your Instagram as well – or you can provide an entirely new catalog.

The visual nature of the platform also allows more creative ways for social commerce promotions, such as the use captions on photos, mentions in stories, and more.

Pinterest

pinterest

Pinterest’s social commerce feature, ‘Product Pins’ will still redirect you to a separate product page to complete the purchasing process. These may look like regular pins for people’s boards, but with additional features that offer pricing and other information.

It is also a platform where at least 89% of its users look for inspiration or ‘window shop’. With a little push on the technical process of purchasing, it’s definitely a social commerce platform that can get your brands, goods, and services readily-available for potential buyers.

Social commerce shows no sign of slowing down, especially now that people are constantly sharing information on different social media platforms. We’d love to hear your thoughts about this! And if you’re ready to dive into the social commerce bandwagon, we’ll be here to help you with your strategies.

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