What is Social Commerce and How Brands can Succeed at it

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Social media is influencing consumer buying behavior — so much so that social commerce revenues are forecast to skyrocket, surpassing USD$1 trillion by 2028 [1], up from over USD$570 billion in 2023 [2].

Social commerce refers to the practice of marketing and selling products and services directly through social media platforms. It has recently gained popularity among younger consumers who want a shopping experience that is engaging and beyond a mere business transaction.

For brands that are looking to reach new audiences, boost engagement, and build online communities, a social commerce strategy can be powerful. Read on to find out more about social commerce in terms of:

  • What is Social Commerce?
  • Social Commerce’s Emerging Importance
  • What Brands Need for Social Commerce Success
  • Examples of Successful Campaigns

What is Social Commerce?

To build a solid foundation for your social commerce strategy, it’s important to understand its distinction with e-commerce. E-commerce involves buying and selling online across different platforms, including company websites, online stores, marketplaces, and mobile applications. For social commerce, the entire shopping experience takes place only on social media. As you read through the article, the key differences between the two become more apparent.

Social Commerce Vs. E-commerce

DifferencesSocial CommerceMarketplace and Webstore e-commerce
Types of platformsSocial media platforms like Instagram, Facebook, or TikTok.Online stores or shopping sites like Shopee, Taobao.
FeaturesEncourages social features like reviews, sharing & commenting alongside shopping.Focuses on clear product details, search tools, and secure checkout.
User journeyUsers may encounter products organically through social media feeds or targeted advertising.Websites cater to a more intentional shopping journey, where users are actively searching for a specific product. While Marketplaces also cater to “browse and buy” shoppers.
BenefitsRaises brand awareness and encourages community engagement, leading to increased social influence.Provides a clearer and faster path to a transactional event for a user.

Social Commerce’s Emerging Importance

Social commerce is a direct response to evolving consumer behavior. With 4.95 billion [3] users spending an average of 151 minutes daily on social media platforms, its influence on consumer demand is immense. By adopting a social commerce strategy, brands can enable a swift and direct customer journey. This provides consumers with a seamless buying experience, allowing them to checkout without leaving the social media app or platform. As the online shopping sphere develops, social commerce will continue to gain prominence as it brings numerous benefits for brands.

a. Building a community

Social commerce today is transforming how brands interact with consumers. By merging shopping and social media, businesses can build deeper connections with their customers. Brands can learn what consumers want directly and generate word-of-mouth marketing from satisfied customers. A strong community fosters brand loyalty and also leads to repeat purchases as online shoppers tend to value genuine interactions.

b. Easy shopping experience

Prospective buyers are spending a lot of time on social media platforms. Brands can capitalize on this and boost sales by making it easier for users to purchase their products via these platforms. By removing barriers to purchase like external redirects, consumers able to conveniently make purchases within the same platform.

c. Wide reach

Social commerce widens a brand’s reach. By leveraging social media, brands can connect with a global audience and expand their customer base beyond their geographical location.

d. Direct customer feedback

Most social media platforms have built-in features that provide sellers with valuable insights for targeted marketing. Brands can identify ideal customers and tailor their offerings accordingly. Creating surveys and polls are some ways to gather immediate customer feedback on social media.


What Brands Need for Social Commerce Success

Now that you know how beneficial social commerce can be for brands, you may want to consider implementing a robust strategy for your business. Here’s how you can remain competitive in today’s market:

a. Invest in the right technology infrastructure

Managing inventory, orders, and fulfillment across multiple sales channels can be a logistical nightmare. With social media in the mix, brands will find it tough to maintain accuracy and efficiency. This is where a robust order management system (OMS) becomes essential. A centralized OMS consolidates sales management across all channels, ensuring real-time inventory visibility.

b. Create a strong brand identity

Building a recognizable brand is key to standing out on social platforms. Consistent messaging and visual elements across all platforms build trust, making it easier to connect with the target audience. By clearly defining brand values and personality, businesses can differentiate themselves from competitors.

c. Provide a seamless shopping experience

A clear, simple, and seamless shopping experience on social media channels is crucial for a successful social commerce strategy. Brands need to clearly highlight their products through their content and utilize integrated features on social commerce platforms to encourage immediate purchases. For example, Instagram allows users to buy products directly from a post or Instagram Shop with just a few taps, making the purchasing process quick and convenient.

d. Build an engaged community

Interacting with customers online enables brands to build strong relationships and increase sales. Prioritizing good customer service is the first step to building an engaged community, but other ways include leveraging influencer marketing, showcasing customer testimonials, and hosting live events like Q&As.

Examples of Successful Campaigns

Social commerce places new demands on marketing and advertising for brands. These efforts can prove to be costly, but not all successful campaigns require significant investments. Utilizing e-commerce capabilities, brands can provide a more straightforward and intuitive shopping experience, from product discovery down to engagement and purchasing. Social commerce simplifies the buying process and drives higher conversion rates as a result.

Let’s look at some examples of brands that have seen success with their social commerce ventures:

a. Havaianas

Haiavanas uses customer-generated content (UGC) like lookbooks and shoppable Instagram feeds to showcase products realistically. By seeing how shoes look on real people, customers can better imagine themselves wearing them, increasing purchase intent. From that point on, the buying process is seamless as customers simply click on their desired product on the shoppable feed and proceed to checkout.

b. Sephora

Sephora’s “Fragrance IQ” quiz is a prime example of personalized social commerce. The quiz covers a brief series of questions to help determine the ideal perfumes or colognes for the taker. Quizzes keep customers on the page but also serves as a way to gather customer information. This inexpensive approach allows brands to bridge the gap between online and offline shopping experiences. Tailored marketing efforts can also reduce cart abandonment rates and increase customer satisfaction, as buyers are able to find exactly what they need and purchase it on the spot.

Conclusion

For brands, social commerce sites can become a strong channel to not only drive sales but also customer engagement and advocacy. Building a social commerce strategy for your brand will require careful planning. A successful social commerce campaign will ensure your brand can manage the influx of sales from selling through social media.

With Anchanto’s Order Management System, brands can manage their social commerce orders and inventory centrally. That way, they can process orders quickly, correctly, and as per the inventory in stock. To explore the capabilities of our OMS for social commerce management, reach out to our experts today!

FAQs

1. How does social commerce work?

Social commerce leverages social media platforms like Facebook, Instagram, and TikTok to seamlessly integrate shopping experiences, allowing users to discover, browse, and purchase products directly within their social feeds.

2. Why is social commerce important?

Social commerce allows businesses to sell directly on social media platforms, reaching more people and boosting sales right where customers spend their time online.

References –

[1] – Statista.com – Social commerce – statistics & facts

[2] – Statista.com – Social commerce revenue worldwide from 2018 to 2028

[3] – Porchgroupmedia.com – 25 Amazing Social Commerce Statistics

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