What is Social Commerce?

Social commerce refers to the direct purchase and sale of products or services using a social media site. It involves using social media for purposes other than the typical exploration process. Social commerce allows every phase of the buying process to take place on social media, from finding products and research to final payment.

More About Social Commerce

Yahoo! coined the term “social commerce” in November 2005, referring to a collection of online interactive purchasing services such as user ratings, shared pick lists, and sharing of other user-generated content of online goods knowledge and suggestions.

Online marketplaces on social commerce channels, such as Instagram and Facebook Shop, enable businesses to post products for sale that reach potential customers all over the globe as they browse their favorite social media sites.

Social commerce executives create and share messages, as well as interactive elements, to encourage online sales along with other e-commerce operations. Some of the marketing strategies that social commerce uses include:

  • Engaging users to vote on the product’s layout or options
  • Presenting customized possibilities to the buyer
  • Using eye-catching, large-scale visuals to get viewers to click
  • Using videos to demonstrate the product in action and from different viewpoints
  • Encouraging images, comments, and suggestions from users
  • Using influential individuals to promote the product line
  • Sending users directly to the shopping cart or checkout page
  • Giving discounts or giveaways to consumers who promote the product via their feeds

Given below is an example of social commerce by the Instagram handle of the cosmetics company, Glossier. Here, you can see the image, product info, price of the product, and a CTA to directly visit the website and check out more or buy this product. There is also an option for instant buying through the Instagram page itself, with the shopping cart icon on the top right corner of the page.


Source: Instagram

Frequently Asked Questions

How many types of social commerce are there?

There are seven different types of social commerce:

  • Social Shopping
  • Platforms for peer-to-peer sales
  • Social network-driven sales
  • User review websites
  • Picklist sites
  • Group buying and daily deals
  • Participatory commerce

Why is social commerce the future?

Social selling decreases the hassle associated with traditional e-commerce, wherein customers may conduct research on social media, make purchases on a website, call for service, and so on. Integrating these tasks onto a single platform streamlines the purchasing experience for customers, enhancing customer satisfaction and business sales.

What is the difference between social commerce and live commerce?

Live commerce increases conversion rates by enabling brands to present the features and advantages of their products, respond to inquiries, and resolve issues immediately. Social Commerce, on the other hand, focuses on developing long-term relationships with consumers.

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