The Power of Social Commerce

It’s no surprise that online shopping has overtaken the retail industry. There are over 2.6 billion online buyers (33% of the world’s total population), and the number of people shopping online is only increasing (Mosby, 2024). This creates room for opportunity, especially when you throw social media into the mix. 

Social media has been used to advertise goods and services for decades, and it works. Facebook was the first to put these products directly into a marketplace within their server. This groundbreaking idea introduced social commerce, the exchange of goods directly within a social media website (Dollarhide, 2022). Social commerce combines social media marketing with instant gratification and simplifies the buying process for consumers. 

A few years later, Instagram launched Instagram shopping, where businesses can create a shop that allows them to sell and share their brand story while people browse products and explore collections. This launch incorporated more aesthetics, with targeted pictures placed on consumers’ feeds. The product tag feature even allows viewers to click directly on the purchasing page for the product without ever leaving the app (Instagram, 2024). 

TikTok quickly joined the wave, launching the TikTok shop in 2022. They added shoppable videos, live shopping, and a specific page on the app where users can scroll through product features. Since then, nearly every mainstream social media network has implemented social commerce, and companies are seeing great results. Wyze, a small smart home product startup company, joined the TikTok shop and has since hit peak total sales for the company on a single video (TikTok, 2024). Luckily, the trend continues, and e-commerce sales are expected to grow 8.8% by the end of 2024 (Snyder, 2024). 

How is Social Commerce Effective?

It Allows for an Interactive Shopping Experience:

Social commerce allows users to interact with an advertisement in the same way they would interact with typical posts. Users can comment and share reviews freely, allowing for a feeling of authenticity when learning about a product. Conversations between users in the comments show genuine reviews and allow for consumers to trust the purchase making them less likely to hesitate.

Encourages Spontaneous Purchasing:

Impulsive buying is prevalent in Generation Z consumers, who comprise a large portion of social media users. Social commerce allows businesses to advertise their products in a flashy manner, fitting in with typical posts on the user’s feed. A product grabs the user’s attention, and they can complete their purchase within minutes, giving them little time to reflect on their purchase. 

Decreases the Likelihood of Cart Abandonment:

Consumers often abandon their potential purchases because of complicated checkout processes. Whether it be creating accounts or shifting websites, buyers quickly become uninterested. By keeping the purchase on the site that the buyer trusts and decreasing the number of steps to purchase the item, a consumer is much more likely to follow through with the purchase. 

Effective Influencer Marketing:

Influencer marketing has proven to be successful, yet social media allows for a more personal aspect. Influencers can freely post content that will grab the attention of their audience. Social commerce shops can target a wide range of customers through trends and aesthetics created by influencers. By remaining on the influencer’s page, the purchase feels more trustworthy and genuine, leaving out a ‘middleman’ site.

 

Overall, social commerce is a crucial tool for businesses to increase their sales and brand exposure. Understanding how social media and online shopping can be integrated is essential for keeping up with shopping trends in our current market.