Social Commerce - The Leading eCommerce TrendGeneral, Price-monitoring, eCommerce ·
The eCommerce sector is constantly evolving, but one trend has especially erupted during the previous year - social commerce. Social commerce refers to the integration of eCommerce and social media. It enables customers to explore and buy products via social media, without having to look for them on an eCommerce platform.
Due to COVID19, almost all businesses had to move online. Many businesses have seized this opportunity to find better ways of connecting with their customers. Blending eCommerce with social media turned out to be one of the most successful, yet exciting ways to reach that goal.
Let’s take a look at why global social commerce is so powerful and which markets are leading the way.
The Power of Social Commerce
As a business owner, you might ask what your business has to do with social media, especially channels such as Instagram or Tick-Tock.
Well, if you take a second to think about your customers it would make perfect sense:
- Did you know that there are 1.4 billion daily Facebook users?
- 60% of Instagram users find and buy new products via that social media channel
- 30% of online shoppers state that they are willing to buy products on social media channels such as Facebook, Instagram, or Pinterest.
In 2020, Facebook launched Instagram Shops which is the perfect example of eCommerce and social media integration. The researchers predict that social commerce will continue with a steady growth during 2021 since many customers will stick with their digital habits.
If customers can buy products from the website, then why is social commerce so popular?
People don’t want to lose their time and prefer to finish everything as soon as possible. If they are scrolling over Instagram and see some interesting product, social commerce allows them to buy it right away.
Moreover, social media offers brands and retailers to create interactive campaigns which help products become viral. Therefore, it’s no surprise that huge global names such as Armani, Gucci, Nike, or Sephora are investing in social commerce.
China Leads The Way of Social Commerce Market
China is the largest eCommerce market in the world. Whenever you hear about some tech innovation it’s usually connected to China. Truth be told, Chinese customers seem to be willing to always try new things, so it’s no surprise that the Chinese market is constantly changing.
Interestingly, social commerce turned out to be a perfect solution for the extremely high user acquisition costs. According to Statista, to acquire a new Chinese user on Alibaba, businesses have to pay approximately $123! Understandably, brands in China find it much affordable to use social commerce campaigns.
If we tell you that the Chinese social commerce market is expected to reach nearly $315.5 billion by the end of this year, then it should be pretty clear how big potential lies here.
The Upcoming Social Commerce Trends
With the increasing popularity of social commerce, new trends and engagement methods are constantly appearing.
Importance of Micro-Influencers
When it comes to influencers, the usual approach is to find someone popular, celebrity if possible. However, those people are very difficult to nail down, and the costs for their services are huge. Moreover, nowadays customers are looking for something else - authenticity.
People understood that celebrities are far removed from everyday struggles, and therefore, don’t consider them as relevant sources as they did before. That’s when micro-influencers come into the picture. Customers feel a stronger connection with them and you should definitely take advantage of this trend.
Communication is the key
Communication with customers is usually done over email. However, nowadays customers are looking for a more personal connection. And above all, modern customers are very impatient. They want an instant response, and social channels can provide it.
Changes in the purchasing behavior
We mentioned some of the high-end brands and their presence on social media. But, let’s be honest - they have such a strong brand that it almost makes no difference where they are advertising. However, for smaller companies, social commerce can be a game-changer. People are prone to impulsive shopping and that can be achieved with social commerce.
Another important thing that social channels can offer is social proof. Potential customers can check the brand right away by scrolling over the comments or checking the likes and hashtags.
Keeping up with the trends and changes in the eCommerce industry is essential. In such a fast-paced environment, your business can not afford to stay passive. Keep it in mind when considering your budget and new business activities.
What are your thoughts about social commerce? Are you present on social media? Feel free to share your experience with us! We would love to hear more about it.