As difficult as the last few years have been for most of us, there is one arena that has experienced a boom – even during the economic downturn caused by the pandemic.
That arena? Online shopping.
More specifically, e-commerce sites and online marketplaces like Amazon have seen significant growth, while small businesses have launched with the help of government loans aimed at stimulating the economy. In 2020, well over two billion consumers bought online, with online sales growing worldwide by 25 percent. And the numbers are expected to continue to grow, judging by what we’ve seen in 2021.
But straightforward seller-to-buyer transactions don’t account for all the ins-and-outs of e-commerce. In a world marked by a rise in isolation and increased internet access, more people than ever have turned to social media for their interactions — and savvy businesses haven’t missed out on the opportunity to reach more customers.
The result is a trend that is known as social commerce: sellers piggyback on the popularity of social media platforms in order to connect with their audience.
What exactly is social commerce? How does it work? And how can it work for small business owners like you?
What Is Social Commerce?
Social commerce is the leveraging of social media in order to market and sell products and services to consumers. In some instances, this is directly done via social media platforms using marketplaces, such as Facebook Marketplace. In other instances, social commerce falls more in the realm of social media marketing, with in-app advertising that links to business websites or other means of accessing products.
Sometimes, of course, specific instances of social commerce are a mix of the two — you may see a blitz of advertising for a specific product popping up on your Instagram feed with links to a company website, only to finally cave to the appeal and find that the company’s IG account is more than happy to sell to you right then and there. In a world that is increasingly defined by our short attention spans, the fewer the clicks, the better it is for everyone involved.
So exactly how does social commerce work for the consumer — and for the business behind it?
Shopping’s New Look
If you spend any time on social media, you’ve likely already gotten a glimpse of how social commerce works from the perspective of the consumer.
Like marketing in general, social commerce uses keywords and knowledge of target audiences to deliver advertisements to individuals that are designed to appeal on a personal level. Think of how often you see ads on your Facebook account that are directly related to recent searches or to your location. Targeted ads are designed to be shown to the audience that would find those ads most relevant; Facebook’s advertising breakdown describes it in detail, but ultimately it’s just common sense to market products and services primarily to the people who are most likely to buy them.
Social commerce, however, takes it a step further by making the products and services immediately available, often selling through company accounts on the platforms in question.
This can be found on all sorts of popular social media platforms, including Instagram, Facebook, and even Pinterest.
So, does social commerce require paid advertising?
Paid Advertising and Social Commerce
The short answer is no, it doesn’t — not technically. But the longer answer ends with, “…but it’s probably worth your while.”
Paid advertising may be beyond the budgeting means of a small business, at least while they’re getting started. Social commerce can be carried out organically, via other connections and advertising methods, such as user feedback, consumer-created content, and of course account posts by the business itself. These are best maximized through intelligent use of a company’s official website, other social media platforms, and any print or email marketing campaigns.
Another way to enhance the effectiveness of social media is through the use of influencers. Social media influencers have larger audiences — though the numbers are relative depending on the influencer and their sphere of influence — and have built up trust among their followers. If they endorse, recommend, or use a product, that carries more weight than simply a paid advertisement.
Unless you happen to be friends with an influencer, of course, this also means a marketing budget. Influencer advertising as a social commerce method usually involves the inclusion of a link in the description of the post, leading the viewer to the ecommerce page directly for that product or service.
Even with the outgo of funds, this can still mean a significant return on investment, especially depending on your target audience. For example, millennials are more likely to rely on YouTube influencers for purchasing decisions than more traditional media personalities like movie stars. And statistics suggest that up to 86 percent of female consumers turn to social media for advice on what to buy and when.
So what does social commerce look like?
I Didn’t Set Out to Shop, But…
For social media users, social commerce tends to be an afterthought. It’s more a part of the journey rather than the destination — we scroll through our Instagram feeds, watch a video from our favourite influencer or note a recommendation from a friend, and the next thing we know, we’ve bought the product for ourselves. It’s a case of instant gratification, over and over.
It works out well for both consumers and for companies, as it’s a less-invasive method of marketing that still boasts a significant return.
It’s also a smart way to combine products, especially for companies that market items like clothing and accessories. Whether it’s via an influencer, an ad, or a post, individual items can be viewed and clicked on to access the entire look, if that’s what the consumer wants. Shoppable feeds stimulate both the imagination and the economy.
Social commerce makes it possible for social media users to “accidentally” get in the consumer mindset — the equivalent of an e-commerce sleeper wave.
Making Social Commerce Work for You
If you’re launching or running a small business, social commerce is an ideal avenue for showing your products off to a large audience of purchasing-ready consumers. A few key elements are important to get the most out of your social commerce plan:
- Social media brand accounts. In order to maximize this method, it’s critical to have a social media presence.
- Branded visuals. For the posts and for the account itself, it’s a good idea to look at a social media app logo maker specifically for your company’s social media presence.
- Regular content. Post frequently and make sure that your viewers have something to look at — and to shop.
- Clickable/shoppable posts. For social commerce to work for you, it’s important to ensure that the technical aspects of ecommerce are all handled well. There’s nothing more frustrating than deciding you want to buy something and then finding that the link is broken or leads to a completely different product.
- To grow and maintain your business, following up on every connection and interaction is vital. Respond to comments, follow back and like posts from your followers, and invite them to interact, provide feedback, and create user-created content.
Social Consumers, Social Companies
In today’s internet-driven society, we spend more time than ever on social media. Social platforms provide our conversation, our basis for friendships — and with the rise of social commerce, they provide a ripe field for shopping sprees, too.
Utilising social commerce is a smart choice for any business, large or small, and can help you to grow your customer base and make the most of your social media presence.
