Thanks to the big boom of state-of-the-art technology, online shopping is significantly favoured on a global scale. With the rise of social platforms, social commerce, the integration of Social channels and eCommerce occurs and helps businesses gain more sales. Merchants now can approach customers easily on Facebook, Instagram, Snapchat and more. It brings benefits to customers too because they can buy online in these channels conveniently.
So, the question is: What is social commerce? And how to apply it?
We will give you a “small guidebook” about social commerce in this blog. You will know more about what social commerce is and how to make a strategy to use this method effectively.
1. What is Social Commerce?
Perhaps, you have not heard about the social commerce definition before, but indeed, you have seen it. Let’s recollect every time you surfed Instagram or Facebook, and you saw a photo image of a brand – with a product tag or Buy button on it. What you saw is precisely social commerce.
social commerce is the employment of social media channels to advertise and sell products or services, facilitating transactions. Simply put, it integrates all eCommerce functions and purchasing processes directly into social networking sites. With social commerce, customers can experience all the shopping journey – from product finding, choosing to check out process – on social media, without leaving the app or redirecting to any website.
Not surprisingly, the social commerce industry worthed the US $89.4 billion in 2020 and is estimated to reach over $600 billion in 2027, with a 31.4% CAGR.
2. Social Commerce vs eCommerce: the differences
Some people may feel confused about these two terms’ social commerce’ and ‘eCommerce.’ Although sharing some similarities, they are not totally the same. Let’s explore the differences to understand more about what social commerce is.
E-commerce is about the buying and selling processes via the Internet (websites or branded apps). Although this model is a tremendous revolutionary step, it is far from perfect due to some shortcomings. In 2020, over 68% of Internet traffic came from mobiles, and there is a higher cart abandonment rate on mobile.
One of the top reasons for this problem is that traditional eCommerce requires too many steps and time, making the customers’ journey longer. For example, when they are interested in a product promoted on social media, they have to click on that ad and wait to be redirected to the company’s website. Then they have to fulfill the shopping cart, fill in personal details and credit card information. All of these complicated steps will lead to a risk of buyers abandoning the buying process.
About social commerce, it allows customers to make a purchase and finish the transaction in fewer steps (typically three), right on the social media platform where they see the product. Undoubtedly, mobile and social commerce are compatible.
Read more: https://magenest.com/en/social-commerce/
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