Social Commerce: Revolutionising Online Shopping

Imagine you are scrolling through your favourite social media app. Suddenly, a stunning outfit catches your eyes, and you tap the post. Within moments, you explore the product, check reviews, and buy it- all without switching the app. Welcome to social commerce—where social media meets e-commerce! Today, online shopping thrives on the social media apps we use daily. Facebook and Instagram are no longer merely for networking, chatting and sharing updates. They took online shopping to a new dimension, elevating the experience for buyers and helping businesses grow.

If you are a brand seeking growth or an online customer seeking convenience, social commerce is your go-to solution. Let us delve into how it works, as well as its key features, types and challenges to consider. Read on to learn how it benefits business owners and customers. Discover the major social media sites that are reshaping the e-commerce landscape.

What is Social Commerce?

Social media and e-commerce have been making our lives easy for long. Apps like Instagram allow you to connect with people and share photos and videos. Dedicated e-commerce sites and apps help you browse and buy products online. But what is social commerce or social e-commerce? It is an integration of social media with e-commerce. It lets you buy products and services directly through social media sites and apps. From product discovery to purchase, the entire shopping cycle is within the platform.

Users can browse and shop seamlessly without leaving the app. Businesses can market and sell their products to a more focused audience. Likes turn into purchases, and followers become loyal customers. Today, leading social networking apps serve as marketplaces beyond their traditional purpose. They are lucrative social commerce tools for retailers that leverage user behaviour and time spent on social media. 

How Big is Social Commerce: Statistics

While traditional e-commerce is still popular, social commerce is growing rapidly. The global market is expected to exceed $1 trillion by 2028 at a growth rate of 22.6% CAGR. The growth is fueled by the widespread adoption of Facebook, TikTok and Instagram. India witnessed over 600 million active social media users in 2024. It helped social commerce gain traction through WhatsApp, Instagram and Facebook. The Indian market was estimated to be around ₹1.4 lakh crore by 2022. It is predicted to cross ₹3.8 lakh crore by 2028 at a remarkable 36% CAGR.

Key Features of Social Commerce  

The definition of social commerce implies a combination of the real-time interactive and dynamic nature of social media with the convenience of online shopping. It makes selling and buying more engaging and seamless for both the business and the customer. Here are some features of social commerce which make it unique:

• Shoppable Posts: Products are linked or tagged in social media posts, making it easy for buyers to view and purchase with a single tap.
• Easy Checkout: Direct links to checkout lets users complete the purchase without being redirected to other sites.
• Social Engagement: Likes, shares, and comments play a major role in creating awareness about the product and boosting reach. Discussion forums add to credibility and trust. This makes the shopping experience community-driven rather than transactional.
• Recommendations: The app’s algorithm suggests products based on user behaviour and preferences. This makes shopping more personalised.
• Promotions: Special offers, deals and giveaways encourage buyers to spread the word. This helps brands get noticed and increase sales.
• Live Shopping: Product live stream helps users interact, ask questions and shop the product immediately.

Common Social Commerce Strategies:

In addition to the key features social media platforms offer, sellers apply various strategies to boost reach, engagement and conversions. They include:

• User-Generated Content (UGC): An authentic social proof from a customer without brand involvement. Product reviews, photos, and testimonials build trust and encourage others to buy.
• Influencer Marketing: This involves collaboration between social media influencers and brands. It takes the product or service to a broader audience and adds credibility. It often includes promo codes and curated deals to encourage quick purchases.
• Affiliate Marketing: Businesses collaborate with third parties, including marketers and influencers, for product promotion. They post product reviews in blog posts or embed unique referral links, which earns them a commission for each accomplished sale.

How Does Social Commerce Work?

Social commerce works by integrating online shopping into social networking platforms. It leverages the huge amount of time people spend on social media. It simplifies online shopping for buyers with a swipe-tap-buy approach within the app rather than switching apps to browse and buy. Sellers can create demand for products that people may not know or have not considered. This elevates the overall user experience of the platform.

Connecting social media to e-commerce to set up a marketplace may sound simple. But behind the scenes, several tactics are at play to help meet the desired outcomes. Trends, influencers and inspiration are some major forces that drive transactions. Hence, a strong social commerce strategy is vital to attract and engage customers. It lets your brands make remarkable sales while offering a unique shopping experience to the buyers.

Common Marketing Tactics:

• Product Discovery: Customers discover products through feeds, stories, and live streams. Moreover, fashion blogs, communities and influencers often link products to encourage purchases.
• Engagement: Potential buyers can interact with posts via likes, comments and shares. User-submitted photos, videos, and feedback add credibility. This not only improves engagement it also builds trust and spreads awareness.
• Visual Appeal: Brands often use striking visuals to attract clicks. Large graphics and videos show the product from different angles. Live demos and endorsements also help attract the attention of buyers.
• Tailored shopping: Sellers can prompt users to vote on product choices and styles. They can use quizzes to gather user preferences. Sellers can fine-tune products and buying options for customers.
• Simplified purchase: Buying is made easy with direct links to checkout pages. In-app purchases and product tagging help users complete the purchase quickly. Promotions, deals and giveaways also attract buyers.
• Feedback: Reviews, ratings, and user-submitted photos and videos add to credibility. This makes potential buyers feel confident about their purchase. Shopping experiences shared in communities and forums also increase trust.

Difference Between Social Commerce and E-Commerce

Both social commerce and e-commerce involve online shopping. However, they differ in various aspects. Most brands use e-commerce platforms for promotion and sales. Understanding social commerce vs ecommerce is an advantage. It helps brands pull off strategies to use the potential of social media to reach a more focused crowd. Here are some aspects in which social commerce differs from e-commerce:

• Platform: E-commerce depends on dedicated sites and apps where people browse and buy. These include Amazon, Flipkart and Shopify. Social commerce occurs on social media platforms like Facebook, TikTok and Instagram. Users discover products, engage with them, and buy them, all within the social media app or site.
• Marketing: SEO, paid ads, and email marketing attract buyers towards e-commerce platforms. Social commerce uses influencer collaborations, celebrity endorsements, UGC and direct engagement with followers.
• Social Proof: E-commerce relies on customer ratings and reviews for product feedback. Social commerce uses dynamic social proof, such as UGC, comments, forums, and recommendations.
• Checkout: Completing a purchase usually involves a multiple-step process on e-commerce platforms. Social commerce simplifies checkout through direct links to the checkout page.
• Shopping Experience: E-commerce focuses on extensive product listing or catalog-based purchases. Social commerce is more of a community-driven experience. It focuses on interactions, user engagement, likes, comments and shares to drive conversions.

Further Reading: Impact of Social Media for E Commerce

Types of Social Commerce

You may find social commerce in different forms on social networking platforms. Each of them leverages certain social media features, such as posts, live streaming, and community. Various types of social commerce you may come across on social media apps and sites include:

• Shoppable Posts or Tags: Users can view and purchase products directly through the app. These include the ‘Shop Now’ links and product tags you see on Instagram and Facebook.
• Live Shopping: A live streaming of a product engages the masses in real time and drives instant sales. Sellers on TikTok and YouTube often use this format.
• Social Marketplaces: A localised, community-driven shopping experience allowing direct sales within the app. The best example is the Facebook marketplace.
• Group Buying: Combines the powers of social media and collective purchasing. Users buy products in groups at a discounted rate. Such social commerce trends are common to apps like Meesho.

Major Social Commerce Platforms

Meta apps like Facebook, Instagram, and WhatsApp allow for seamless linking of accounts. Sellers can apply a robust social commerce model and set up their stores on these platforms to see the magic. Without further ado, let’s look at the major social commerce sites and how they work wonders for businesses:

Instagram

It is a platform on which a large share of users shop. Sellers create an online storefront (Instagram shop) to showcase products and services. Each item can have its own page with details, photos, videos, and pricing. People can browse and make purchases easily within the app. Shoppable posts help users view product details and buy them with a single tap.

Product tagging in posts and stories and the Shop tab lets users browse, save and buy items directly from the makers. Sellers can use ads with a ‘View Shop’ link, which appears as sponsored posts in the feeds. Live Shopping lets brands and influencers feature products in real-time. Instagram also enables shopping through DMs for a more personalised experience. Sellers can also link the Instagram shop to their Facebook shop.

Facebook

Facebook leads as a social commerce site, offering multiple tools. Marketplace is a major tool that drives local transactions. It connects local buyers and sellers for direct transactions, mainly second-hand products. Though a community-driven marketplace, it lets businesses list products and run ads.

Facebook Shops lets retailers set up online stores. They can add product catalogues, descriptions and visuals. Products, new launches, promotions, and bundles can be featured. Customers can browse and buy products within the app. Facebook shops reach users in various ways. They include Facebook pages, Instagram profiles, ads or shoppable posts and stories.

TikTok

TikTok has an enormous user base with its Gen Z stronghold. Its Shop feature allows businesses to showcase and sell products within the app. Sellers can use shoppable videos and tag products to drive sales. Selling through TikTok Live helps engage the audience in real-time for instant sales.

TikTok beautifully blends fun with shopping, which makes it truly interactive. It enables sales in three ways: in-feed videos, Live broadcasts and the product showcase tab. Users frequently share their purchases with hashtags, encouraging others to purchase. These features boost product discovery using entertainment, taking brands to a larger audience. 

Snapchat

Snapchat is popular among Gen Zers for its instant, fun and interactive features. Social commerce on this platform focuses on young buyers aged between 15 and 35. Its Native Store lets brands showcase products on the app. Shoppable ads and product catalogues help users explore and buy products within the app.

Including AR (Augmented Reality) try-on lenses has made shopping more immersive and interactive. Users can now see how a product looks on them before buying it. Social commerce thrives through visual appeal, immersive experience and cool features. It is preferred by young buyers who seek convenience, fun and personalisation while shopping online.

The Key Benefits and Limitations of Social Commerce

Social commerce has changed the experience of buying and selling online.  While buyers find it more engaging, brands can reach a larger audience. Ease of use, simplicity and brand trust draw buyers in. However, some challenges, like privacy concerns, are worth considering. Here are the different advantages and disadvantages of social commerce you need to know:

Benefits For Buyers

• Convenience: Social media users can shop without leaving the app, saving time.
• Easy Discovery: Users can find new products in social media feeds, stories, or ads.
• Social Proof: Feedback such as reviews, videos, photos, and likes builds trust.
• Real-Time Interaction: Users can ask questions and get answers during live shopping events.
• Seamless Shopping: Users can browse, explore, and buy products—all in one place.

Benefits For Sellers

• Broader Reach: Reach out to a larger audience on platforms they already spend a lot of time on.
• Higher Engagement: Interactive features like likes, live streaming, AI chatbots and comments increase visibility and user engagement.
• Enhanced Trust: Social proof from reviews increases trust and brand credibility.
• Effective conversions: Buyers are retained within the platform, reducing drop-offs.
• Cost-Effective Ads: Social media ads are often cheaper and more effective.

Further Reading: AI Tools

Limitations of Social Commerce

• Platform Dependency: Businesses greatly depend on the policies and algorithms of social media platforms.
• Privacy Concerns: Users may be reluctant to share personal and payment details.
• Competition: Businesses may struggle to stand out among numerous counterparts on the platform.
• Limited Branding: Businesses have less control over the shopping experience, unlike their dedicated websites.
• Regional Constraints: Some features, such as in-app checkout, may not be available in all countries.

To Wrap Up

The online shopping arena has evolved with social networking. Gone are the days when dedicated e-commerce sites and apps sufficed to accelerate business growth. Amidst the challenges like shorter attention spans, applying the right social commerce model can help businesses outshine the competition and grow their customer base. Besides, staying abreast of the changing social commerce trends is also crucial. At Webdura, we fine-tune and amplify these efforts by crafting tailored strategies powered by analytics and optimising campaigns for the best impact. Dive into the world of social commerce with us today!

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