Unlocking the Potential of Social Commerce
Social commerce is becoming an essential part of nearly every type of business. It is projected to grow at a CAGR of 34.1% from $89 billion in 2020 to $605 billion in 2027, so brands of all sizes must have a strong social selling strategy. The world of social media is already a part of many customers’ daily lives, and a social selling strategy will ensure your brand’s presence in the minds of its potential customers.
If you want to maximize the potential of social commerce through Instagram, you need to engage your audience at every stage. This means displaying a variety of products on the app and providing a high-quality user experience. You can also add links to your website to offer more information to your followers.
There are several benefits to this type of social marketing. One is the ability to post Shoppable Stories, which are Instagram stories that showcase products. Users can swipe up to view more information about a product, and then complete the purchase. Another benefit is that you can set up a full-blown Instagram Shop, which enables people to browse through products and complete purchases without ever leaving the app. Moreover, 83% of Pinterest users have purchased being inspired by a Pin. This makes Pinterest a major source of buying decisions for users.
As an added benefit, Instagram offers in-app checkout, which could convert the app’s reputation as a leading social platform for fashion into a powerful direct sales engine. Facebook executives have confirmed that they have ambitious plans to monetize all of their properties, including Instagram. They have also said that Instagram is one of their most important platforms for e-commerce.
As Instagram continues to expand its reach, brands should consider launching an Instagram shop on its platform. It has the potential to transform consumer behavior by creating an entirely new way to sell products and services. Moreover, modern customers are sick of branded content and want a more authentic experience. The Internet is the most popular platform for shopping, and brands can tap into this by making their products easily available for purchase on Instagram.
TikTok is a social video platform that allows users to upload and curate videos. By incorporating TikTok’s trending hashtags, music, and transitions into videos, brands can capitalize on TikTok’s viral power. For instance, a TikTok video of a celebrity wearing a new outfit may encourage viewers to click on a product tag to purchase the item. Ultimately, this can increase sales for the brand.
Though TikTok is a young platform, its growth and user base are promising. According to the website, it boasts more than 1.6 billion monthly active users worldwide. This represents a significant increase from a year ago. As a result, TikTok has gained attention from multiple industries and consumers alike.
In addition to the rapid growth of TikTok, the social commerce space is rapidly evolving. While it is not yet a fully developed channel, it is a growing opportunity that offers retailers yet another venue to connect with consumers. Specifically, TikTok provides retailers with a unique social commerce opportunity: a way to tap into the growing community on a maverick platform.
TikTok has recently introduced a live shopping feature that lets users buy products directly from the platform. The shopping button appears in a user’s TikTok profile and directs the user to a mini storefront. Brands and sellers have also begun featuring their TikTok shops on their websites. This means that consumers can purchase products that are featured in their videos without ever leaving the platform.
Using TikTok as a social commerce platform is a great way to engage with your target audience and increase conversion rates. It offers advertisers many benefits including pixel-driven analytics, cost caps, and campaign segmentation. Additionally, advertisers can manage all activity through TikTok’s Ad Manager. In addition to maximizing your chances of generating sales and leads, a strong creative is critical to the success of your TikTok social commerce campaign.
Social media is a massive networking platform, so it makes sense for brands to integrate it with their eCommerce website. By leveraging social media, brands can leverage every part of the purchase funnel, from consideration (via retargeted advertising and referrals) to conversion (at the bottom of the funnel). Ultimately, this strategy can help brands create a more personalized shopping experience.
Currently, social commerce represents 16.7% of the $7 trillion global e-commerce industry. The fastest growth is expected to be in developing markets. As social media adoption increases, companies will have a great opportunity to leapfrog platform e-commerce in these markets. By 2025, social commerce will be worth $99 billion in the United States alone. The biggest opportunities will be in apparel, consumer electronics, and home decor.
Despite the early stages of social commerce, it has already paved the way for micro retailers and brands to reach the global platform audience. Some have gone on to become household names. In addition, social media platforms have democratized access to consumers and created the tools businesses need to succeed. The digital backbone of social commerce is connectivity.
With the ability to tap into existing social networks, brands can now sell their products and services to millions of people, which is a tremendous opportunity for small businesses. As more consumers access social media and shop online, the big brands will have to shift their digital engagement strategies to compete. Brands must focus on their customers and create new partnerships to grow in this emerging market. However, many of these new technologies are not yet fully developed.
Social commerce platforms have the potential to improve customer experience by improving conversion rates. It also helps retailers build stronger relationships with customers. This will increase brand loyalty and attract new clients. Compared to e-commerce websites, social commerce allows brands to reach their customers through their preferred outlets.
In the world of social commerce, brands are increasingly testing digital drops that enable shoppers to virtually queue up for exclusive access to new products. These digital drops are also known as Livestream events, and Betabrand has been live streaming new product drops since early 2019. The company broadcasts its Livestream events twice a week and claims that half of its sales are generated through these Livestream events.
Betabrand’s CEO, Chris Lindland, believes that social commerce is the future of digital commerce. He explains how the company’s growth is driven by building a frictionless checkout experience for brands on social platforms. Recently, Chris has spoken at conferences including Women in Retail, Total Retail Virtual Exchange, and Newell Brands. The company is also partnering with other leading brands, including Verizon and Total Wine & More.
With the rapid growth of social commerce, any brand can now reach a broader audience. This new medium gives individual consumers a platform to create their brands and reach an entirely new market. Previously, big brands sold to mass markets of millions, but now, millions of people are selling to each other. As a result, big brands will face increasing competition from small businesses.
China, India, and Indonesia are among the countries with the highest adoption rates of social commerce. According to the Essence survey, 80% of Chinese consumers bought products or services through social media. Following closely behind them are China, Singapore, and Indonesia, with 50% and 48%, respectively. Meanwhile, Japan, France, and Germany showed the lowest rate of social commerce purchases, but interest is growing.
TikTok plans to roll out social commerce
TikTok plans to roll out social retail through in-app shopping experiences. These experiences have the potential to make a brand go viral. But the key to success is ensuring that TikTok content is entertaining and that users don’t see the same product demos over again. While TikTok’s live streaming and discovery features are essential for success, brands must take advantage of the in-app shopping experience as well.
The company plans to focus on live shopping in the UK first, followed by Europe and then the US. However, there are several problems associated with rolling out live commerce. For one, TikTok’s UK arm is having problems retaining employees. Secondly, its plans to roll out social commerce are hampered by its lack of resources.
Nevertheless, TikTok has already begun testing eCommerce features and has partnered with Shopify. These new features allow creators to recommend products to their followers, making TikTok a place where people can buy products. The addition of social commerce to a video site is just the latest move by the fast-growing social media platform.
The new integration between TikTok and Shopify signals the start of a social commerce ecosystem on TikTok. The partnership enables merchants with a Shopify account to add a shopping tab to their TikTok profile, synching product catalogs with the social media site. Merchants who join the program can sell their products on TikTok using in-feed shoppable video ads.
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