Social media platforms have been the backbone for digital marketing for several years, but most recently, it has gradually transformed from a marketing channel into a platform for commerce, also known as social commerce. Social media users in many parts of the world can finally discover, browse, and purchase products or services without ever leaving their social media app.
Popular discovery platforms like Instagram or TikTok allow users to directly checkout on items on the social feed simply by entering delivery details and payment information. And this has been particularly powerful for brands to convert fans into paying customers, especially among uses who have not previously signed up on the brands’ e-commerce sites or visited their stores. Ultimately this reduces the length of a shopper’s journey thereby increasing rates of purchases.
However, the full length of social commerce features are currently not available globally. For Instagram, TikTok, Facebook, and many more social platforms, social commerce features are still subjects of testing. But as growth and adoption of social commerce continue to accelerate, it would be no surprise to see it enter the mainstream in the very near future.
1. Social Commerce is Rising Globally
Research shows that by 2021, the global social commerce market will increase by about 34%. In fact, it is forecasted that e-sales will exceed $735 billion by 2023. This is important to know at least for two reasons. First, this shows that eventually, the social commerce features that are limitedly available in certain countries will reach many more places. Secondly, this means an increase in your capacity to go global. You will reach a much wider audience and get discovered more often as your products are accessible more easily.
2. Partnership is The Way to Go
Social commerce features are still in the process of testing and developing, and among social media users, it is still a new concept that they need to learn from scratch. Therefore, it is not likely that you will be able to succeed all on your own and with a small campaign. However, a partnership can help you significantly to boost your social commerce debut. An example is a partnership between Nike and Snapchat to promote and sell Air Jordan III “Tinker” after the NBA All-Star game, they sold out in just 23 minutes.
3. Do not Ignore The Younger Audience
Generation Z and the younger audience overall has been capturing the attention of many marketers. Unfortunately, many are still unaware that Gen Z marketing is not just long term investment, but in fact, can already be lucrative. Research shows that Gen Z buying power this year is over $140 billion globally. Showing a huge contribution to sales and influence in the market. So when creating and building your social media presence, know what you can offer to Gen Z.
4. Marketers Should Learn from Douyin
Douyin, a Chinese twin app of TikTok, is perhaps one of the most advanced social commerce platform providers. Douyin has offered a game-changing feature in which users can zoom in on items that appear in a video and shop them directly on the app. Of course, this is not unrelated to the fact that China, where Douyin is native to, is considered the most advanced country in terms of social commerce, with WeChat, Xiaohongshu, and many other fierce contenders.
5. Recommendations and Referrals are Vital
Research shows that 71% of online shoppers will recommend the brand they bought on social media. Combined with social commerce, this means not only more people can see your products but also more people can buy your products directly. Therefore, content-wise, marketers should be able to stimulate more and more user-generated content. Consequently, influencer recommendations will also play a huge part in this economy as users can now purchase items directly from their posts.