Social media networks are no longer a medium of communications but marketplaces with platforms such as Facebook Shops, TikTok Marketplace and Instagram Shops that let the users buy from these platforms directly.
Brands can also use this to reach highly targeted users who otherwise might not be reached, and advertise discretionary goods like clothes and cosmetics.
The Rise of Social Commerce
The Social Media Networks Facebook, Instagram, TikTok, Pinterest… all of them have shopping tools that allow businesses to convert the social engagement into purchase. So their scope for social trade is vast.
TikTok users can go from seeing influencer content with a product to following the link, visiting the product’s website and adding it to their cart in minutes – this works on mobile and promotes quick-deal and ‘impulse’ purchasing.
When consumers are more comfortable with online shopping, it will only grow. As millennial and Generation Z consumers trust influencer recommendations on product recommendations (in Accenture 2023, they said they were more likely to purchase from brands that incorporate buyer reviews and accept returns and refunds safely); transparency with exceptional customer experiences builds trust as well as customer relationships.
Startup Opportunities
Social commerce is the hot new phenomenon with unimaginable possibilities. It lets brands and creators make money from their content and let customers shop and socialize without hassle on their app or website.
Social commerce differs from e-commerce in taking advantage of the interactive nature of digital space in order to give customers a better and more realistic buying experience. The US adult population will consume 11% or more of its media attention on social networks in 2021 according to EMARKETER.
Businesses of all sizes, even the startups, can use social commerce tactics to drive brand awareness, sales, engagement, customer relations and influencer outreach. But before we jump in we have to understand some of the challenges with social commerce e.g. consumers’ resistance to giving up credit card information to social media platforms – composable commerce standards like MACH here is crucial to secure consumer data during payments.
Challenges
The social commerce is a relatively new channel that a number of brands are not yet mastering. As Gen Z’s inclination is towards short-form, live video, brands must also be equipped with the technology that can enable this new form of interaction and conversion.
Social platforms also started catering to the consumers by offering shoppers the opportunity to buy within their apps — for instance, on Instagram where consumers can search for and buy products by shoppable posts, stories or videos.
These are great places to create more seamless connection between marketing and sales where the product will get advertised on one platform, then your customer will buy your product on another. This makes it essential when you are choosing channels to market your product on these platforms that it targets a number of different types of customers; perhaps, selling skincare on Instagram could be a more successful move than on Facebook; selling clothing might be a more difficult move because customers are more scarce on TikTok than on Instagram or Facebook.
Solutions
Integration of shopping into social media post creates frictionless purchase experience for the consumer and brands. The likes of TikTok and other such apps have quickly turned into online markets with built-in selling features and shoppable post formats allow brands to present goods creatively and get viewers engaged and to buy.
Sprout’s integrations with leading social media sites let you post direct product links as replies on brand channels so your users can find exactly what they are looking for without switching apps. This allows for also personalization in the buying process and thus leads to customer satisfaction and retention.
The power of social commerce could also be mobilised through niche groups such as hiking groups, dog owners or car enthusiasts who get together online to give advice to each other. You can take advantage of these social strategies to give consumers a smoother checkout and the opinions and expertise of people who already know these sub-markets.
