Social commerce plays a role in its development as social media becomes the engine behind almost all interaction operations. However, there is a question: what is social commerce, and how is it different from conventional e-commerce?

In this ultimate guide, you are going to learn everything you need to know about social commerce, including its advantages, suitable platforms, prospects, and more.

What is Social Commerce?

It can be defined as a process where customers purchase products through social networks. While it differs from conventional electronic commerce, which involves purchases from specific web platforms or applications, this model relies on the online communities through which it operates.

The combination of a social networking platform and online shopping creates a holistic, engaging experience for consumers with the opportunities to find, discuss, and purchase whatever they need within the applications they use most.

How Does Social Commerce Work?

Social commerce is a great leap forward in electronic shopping, linking online platforms with e-shopping to offer a valuable, time-friendly, and enjoyable experience. Here’s a closer look at how it functions:

1. Product Discovery:

Social media platforms shift the way consumers access products. Contrary to the case of traditional websites where they have to type a specific URL and browse via a separate web application.

Users can discover and engage with products within the content and interfaces they are already using daily on social networks such as Instagram, Facebook, TikTok, Pinterest, etc.

This integration lets users stumble across new products in the same feed, chasing their friends, influencers, or even brand examples.

2. Shopping Experience:

Imagine you’re scrolling through TikTok and come across a pair of trendy sneakers. With online platforms, you can instantly hit “Buy” and complete your purchase right within the app. This streamlined process eliminates the need to navigate away from the platform, making shopping as effortless as it is enjoyable.

3. User Engagement:

Social media is all about sharing and interacting with other users. People can like,’ share,’ ‘comment’ on, and even ’ recommend’ items to others, giving products a ‘voice’ and building a community around the products.

It not only plays an important role in the product discovery stage but also creates a social proof network that stimulates the purchasing stage.

4. In-App Purchases:

One of the standout features is the ability to make purchases directly within the social media app. Users can click on products they’re interested in, view detailed information, and complete their purchase all without leaving the platform. This integration simplifies the buying process and enhances user convenience.

5. Social Proof and Content Sharing:

This remains one of the significant components of social commerce. Recommendations, including ratings, opinions from other consumers, testimonials, and even pictures of the product, facilitate decision-making.

Moreover, the products and services offered by the brands can be presented through visuals and the use of live streaming, besides engaging with the fans.

In this way, it offers a more engaging and interactive shopping modality compared to the traditional one that mainly focuses on e-commerce aspects. Online shopping has become more social and integrated by enabling consumers to research, learn, and buy products while engaging with brands and other consumers.

Types of Social Commerce

It comes in various forms, each offering unique benefits. Here are some of the most popular types:

1. Shoppable Posts: These are posts on social media platforms that contain images and/or text of tagged products, which users can click on the tags and order.

2. Social Stores: Others, such as Facebook and Instagram, provide specific shop tabs through which businesses can showcase their goods in an online store.

3. Live Commerce: This involves live streaming in which influencers or brands demonstrate products to their audience, and people can purchase immediately.

4. Group Buying: For example, in WeChat, users can come together and initiate a group buying event where everyone buys a product and the cost is shared, the process is referred to as ‘group buying’.

5. Peer-to-Peer Sales: Buyer-to-buyer marketplaces, for example, Facebook Marketplace, enables individuals to sell and purchase products directly from other individuals as a social media and e-commerce model.

Boost your online platforms with tips from our article on Social Media Marketing Strategy.

Best Platforms for Social Commerce

When it comes to choosing the best platforms, several social media giants stand out:

• Facebook: Facebook has a feature called Facebook Shop where you can sell products right on your Facebook page. It is possible to search for, bookmark, and even buy certain items within the site without having to exit the Facebook platform, which is a definite benefit of Facebook in terms of social commerce.
  
  

• Instagram: Lots of product discovery occurs on Instagram. Instagram’s Shops make it easy for brands to display and sell products within the app, enabling a straightforward buying experience.
  
  Businesses can create visually appealing posts and stories, tag products, and link them directly to their online store. The Facebook shop can also be accessed on this channel.
  
  

• Pinterest: A great social platform because it’s highly visual, has a large user base, offers targeted advertising options for businesses, and attracts a high-income audience.
  
  Three in five luxury shoppers use Pinterest to research high-end brands, showing that Pinterest has users who are receptive to luxury brand messaging and intentional in their shopping.
  
  

• TikTok: This online network includes social commerce tools and is vital for brands targeting its large audience, ranked third after Facebook and Instagram. Shopping while streaming occurs with in-feed video purchases, product showcase tabs, and the TikTok LIVES tool.
  
  

• WeChat: Thus, WeChat is the popular platform for social commerce in China. WeChat enables various e-commerce activities, including internal purchases and group buying, within the app.
  
  Explore more about driving traffic with effective eCommerce strategies in our blog on Top eCommerce SEO Strategies.

Benefits of Social Commerce for Your Business

Using it has various benefits for your business, such as:

1. Increased Reach: It uses a large number of people on online platforms and makes it possible for businesses to reach many people.

2. Enhanced Customer Engagement: It also means that real conversations are had with customers directly in the form of comments or reactions, sharing, and even direct messaging.

3. Seamless Shopping Experience: As seen in the Alibaba example, by enabling users to purchase via social media applications they use frequently, conversion rates can be boosted.

4. Social Proof: User-generated content, reviews, and recommendations make it valuable because of the influence they have on potential buyers.

5. Targeted Advertising: It provides better targeting than other online platforms, allowing businesses to deliver the right message and enhance sales and ROI for campaigns.

For insights on enhancing customer experience with technology, explore our blog on AI Chatbot for E-commerce.

Social Commerce vs. E-Commerce

While they are similar, they differ in several key ways:

1. Platform

E-Commerce: This is conducted on specific websites or applications that are solely designed for e-shopping.

Social Commerce: Occurs entirely on apps, blending purchasing with social relationships.

2. User Experience

E-Commerce: The site mainly serves a utilitarian purpose, providing an effective and fast shopping experience.

Social commerce: Combines shopping with online activity, providing smooth and entertaining buying across online platforms.

3. Customer Engagement

E-Commerce: The interaction is usually within the premises of the shopping mall, and there is often little or no interpersonal communication.

Social Commerce: Promotes increased attention through likes, comments, and shares, contributing to the overall enhanced shopping experience.

4. Discovery

E-Commerce: Product discovery is dependent on SEO, paid advertising, and direct traffic to the website.

Social Commerce: Discovery is also more natural since it originates from the everyday use by customers, their recommendations on popular platforms, and endorsements by influencers.

5. Conversion Rates

E-Commerce: As for the disadvantages, they have to attend an additional website, which can be an inconvenience to the buying process.

Social commerce: Frequently has a higher conversion rate because of lower interference and the impact of social proof to make purchases from feeds.

Examples of Social Commerce

To better understand, let’s look at some real-world examples:

• Glossier: One of the successful case examples of using Instagram for online platforms is the Glossier beauty brand.
  
  Through the Shoppable Posts method and partnership with the influencers, they have made their customers embrace the platform to make their purchases.
  
  
  

• Nike on TikTok: This has been adopted by Nike through the use of influencers to develop TikTok challenges and product advertisements, enhancing brand awareness and sales revenue.
  
  

• Facebook Marketplace: One good example of peer-to-peer is Facebook Marketplace. This website provides users with an eBay-like experience, allowing them to buy and sell products locally, similar to Facebook.
  
  

• Pinterest Buyable Pins: Some examples of using Pinterest include Etsy, which has integrated Buyable Pins, which enable users to pay for products found on Pinterest.
  
  

The Future of Social Commerce

Several trends provide an opportunity for development and growth. Here’s what to keep an eye on:

• AI-Powered Shopping: AI is expected to transfigure social commerce by providing customized shopping experiences through AI-driven product recommendations and chatbots during the purchase process.
  
  

• AR Integration: Augmented reality can be seen as a promising technology that will help customers get a better sense of products before they buy them by visualizing the product in the customer’s context. This technology can help increase customer satisfaction and significantly decrease the rate of returns.
  
  

• Virtual Dressing Rooms: AR virtual dressing rooms will allow consumers to virtually put on clothing and accessories without having to physically put them on, increasing the chances of a first-time fit and purchase.
  
  

• Livestream Shopping: livestream shopping is currently on the rise, and brands are expected to further progress it by promoting products through presentations, question-and-answer sessions, and consultations, which will, in turn, increase the likelihood of a sale.
  
  

• Influencer Commerce: Celebrities will not only continue to be influential in online platforms, but brands will continue using these figures as a means to appeal to relevant customer segments.
  
  

• Blockchain and NFTs: Blockchain technology and NFTs will be a central focus of product protection and customization of the shopping experience.
  
  

• Cross-Platform Integration: As social media platforms interconnect, the customer experience will become smoother and more efficient for shopping without switching apps.
  

These trends highlight the constant growth, which increases customer experiences and transforms the online shopping experience. For a deeper dive into how AI is transforming digital strategies, check out our insights on SEO Marketing and AI.

Conclusion

Social commerce platforms presents a new face to customers that is a complete transformation to interactive shopping. It caters to the dynamic needs of customers and helps businesses increase their revenue and customer retention.

This transition from conventional e-commerce to social commerce poses a significant challenge to the brand. This approach makes the buying process easier while establishing a direct business relationship with audiences that is beneficial to both.

There is much hope for the future of social platforms. The brands ready to accept this factor and incorporate good methods like SEO for social media will do well in this environment. Whether a small business, startup, or global brand, they offers great potential for reaching consumers and increasing sales.

Check out our guide on Selecting the Ideal B2B Ecommerce Platform to Meet Today’s Buyers’ Expectations.