Social commerce, which allows you to sell products via social media, is revolutionizing e-commerce.
The global market for social commerce is currently valued at $89.4 trillion and expected to grow to $604.5 billion by 2027.
What is driving this shift to social commerce? How can small businesses buymalaysianfollowers make the most of this opportunity for increased sales?
Cameron Uganec (SVP of Marketing at Later) shares his thoughts and forecasts:
What is Social Commerce?
Social commerce is a subset e-commerce. Everything happens via social media: product discovery, search and click-to-purchase.
It’s basically a one-stop shop that allows people to find and purchase products.
via Facebook Press Release
Social commerce is a new type of e-commerce that allows users to buy products directly from websites or third-party marketplaces.
It can enhance the shopping experience. This is a huge opportunity for brands looking to increase sales revenue.
How social platforms are evolving to drive social commerce
Although social commerce is not new, it has been accelerated by COVID-19 in 2020.
Many small businesses have shifted online to reach their customers and connect with them.
Papersmiths, a Later customer, is an example of this trend. This stationery brand had to close their store permanently and switched to online sales. They used Instagram Shop to promote their products.
Sidonie Warren, founder of Sidonie’s online shop, thanked their community for their support and shared user-generated content.
Papersmiths was just one of many companies that had to refocus last year’s selling strategy.
Later actually saw an increase in customers who needed social media management and scheduling tools between March and April 2020. More are coming every day.
Social media platforms have also evolved:
- Facebook introduced Shops, an e-commerce feature that allows businesses to create online shops on Facebook and Instagram.
- Instagram Checkout became mainstream, allowing users to purchase items without leaving the app.
- Pinterest launched a Shop tab — an area where users can browse and shop for in-stock product Pins.
- TikTok Shopping’s latest partnership with Shopify is now available
Business Insider estimates that social commerce will account for 4.3% in all US e-commerce retail sales by 2021, which amounts to $36.09 billion.
What is the takeaway? The takeaway? Social commerce is here to stay and will continue to grow in power.
Our free social sales sessions will allow you to hear from Later and other small business experts! How to set up a digital storefront and sell on social media.
What does social commerce mean for small businesses?
Small businesses need to be able to catch fish wherever they are needed and reach customers where they are.
Stats are not misleading — social media has influenced consumer behavior in a significant way.
- 60% of Gen Zers in America use Instagram to find new brands and products
- 48% of Americans between 18 and 34 have purchased via social media.
Instagram and other social media platforms have transformed into a virtual mall where you can shop, chat with friends, entertain, find inspiration, and even purchase products.
Social commerce is, in other words, the future of personalized shopping.
Social commerce is a great way to get started. There is no barrier to entry.
Many Later customers have created businesses entirely on Instagram. You can easily create a free social media account! You can create a community and sell your products through the app.
This framework outlines a new method to start a modern company.
You can create a simpler sales funnel by leveraging integrated ecommerce features rather than traditional routes to buy.
For example, take the Collective Arts Brewing customer later. Their Instagram page was a crucial channel to drive sales when bars were closed because of COVID-19 lockdowns.
This craft beer company uses Instagram for communication with their customers, to support local artists, , and to promote new drinks, merchandise, and other services.
They are able to turn social engagement into sales seamlessly.
Future of Social Commerce
Social commerce is still in its early stages, but that’s what makes it so exciting.
As a way to increase brand awareness, brands have been active on Social Media for several years.
We are now entering the next stage of social. The winners will be the ones who jump on social commerce immediately. It is time to make it easier for your audience to click “buy”
These are some predictions about social commerce for 2021
- This is where visual content will win. Visual experiences are the driving force behind social media, and brands that capitalize on this will succeed.
- Websites are not enough. Social media must be considered a primary channel for consumer brands.
- Facebook’s integrated shopping approach will be adopted by every social platform, allowing users to shop from the app and go straight to product discovery.
- TikTok is the next great wave in social commerce.
- Video will be more popular (Keep an eye on YouTube Shopping).
- The clubhouse is an exciting platform, but they still have Click Here a lot to do before it can compete with Instagram in terms of e-commerce features. Keep an eye out for this.
Social commerce allows businesses to make money where their customers are. The tools are easily accessible (with more to follow).
Are you ready to fish where the fish bite?