Unless you’ve been living under a rock, odds are you’ve heard the term “social commerce” at least once or twice. You might even be wondering how social commerce differs from e-commerce, and how incorporating it might benefit your business.

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The good news is that social commerce gives businesses like SMEs and even larger ones the ability to tap into the power of social media platforms to drive sales and grow their customer base. By creating compelling content and engaging with customers on these platforms, your business can encourage customers to buy your products or services.

Related article: 5 Things You Need to Know About the Rise of Social Commerce

What exactly is social commerce?

Social commerce is a term used to describe the process of selling products or services on social media platforms. This type of commerce has become increasingly popular in recent years.

In fact, according to Statista, the worldwide revenue of social commerce was valued at $724 billion in 2022 and is forecasted to surpass $6 trillion by 2030. Asian countries are particularly big on social shopping with over 80% of the online population in Thailand, India, and China being social buyers.

Social commerce was valued at $724B in 2022 and is forecasted to surpass $6T by 2030.

The power of shopping directly on social media is that it removes friction from the consumer journey. When discovery and purchase are only a few clicks away, it’s easy for customers to follow through. There’s no need to navigate to a website, add items to a shopping cart, and fill out payment information. Instead, customers can simply click and buy. 

This convenience is crucial, because every click is an opportunity for a potential customer to change their mind. If there are too many steps between discovery and purchase, customers may get frustrated and give up. Social media shops help keep customers engaged by making the path to purchase as smooth as possible.

Over 80% of online shoppers in Thailand, India and China choose to buy through social media platforms.

Related article: Here’s Why You Should Start an E-commerce Business

How can social commerce benefit your business?

Shopping on social media can be a more interactive experience than shopping on a typical e-commerce website. On social media, consumers can easily consult with their friends about potential purchases, and they can also interact directly with the brands they love. This level of connection can make the shopping experience more enjoyable and efficient.

Here are more reasons you should sell your products on social media platforms:

Consistent increase in your audience

The more followers you have on social media the more chance your business has to expand customer reach, making it a powerful tool for social commerce. In light of rising customer acquisition costs, social commerce is an easy shift to access new customers, while enhancing conversion by making products available on the most used platforms.

Genuine customer engagement

Getting more followers isn’t enough. Your audiences must engage as customers to help increase brand recognition and reputation. According to Oberlo, a whopping 89% of global shoppers will look up a review before purchasing a product.

89% of global shoppers will look up a review before purchasing a product.

Maximized SEO and sales generation

Search engines like Google will help your business and products get increased visibility when people are talking about your brand on social media. Make sure you’re constantly posting content, so your SEO ranking is maximized and you reach more customers.  

Related article: 7 Ways to Boost Customer Loyalty in the E-commerce Marketplace

Useful customer data

Social media platforms analyze and track your content and audience engagement. This is important because you will be able to get valuable insights that can help predict product demand so you can focus on what is selling best, and create better content on products that are lagging.

Increased average purchase orders

It’s a lot easier to promote your brand on social media because you can create regular incentives that customers will know about right away. Consider offering free gifts and discounted shipping rates so you entice customers to buy more.

Long-term brand loyalty

Small business trends show that 71% of online shoppers prefer buying from businesses that aligned with their values. Having a unique brand voice that shows your company values will help you gain loyal customers that will increase your sales and reputation. Remember to find a logistics partner that can mirror those values so that your online presence matches your value of customer experience.

71% of online shoppers prefer buying from businesses that aligned with their values.

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Key takeaway

Social commerce is a growing trend that allows brands to make sales directly on social media platforms. This strategy is effective because it reduces friction from online shopping experiences that start on social platforms. Many people discover products they like while browsing social media, and if they can click through to checkout without leaving the social network, it makes for a quick and streamlined experience.

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