Article · January 1, 2024

Adapting to the Social Commerce Era

Social media and e-commerce allow users to browse, share, and buy directly. See what's shaping the social commerce revolution

Meet your customers where they are—it's a tried and true adage. According to usage statistics, that means making it easy for customers to buy on social media. Remember that fidget spinner craze ignited by a seemingly random Instagram video?

Social media’s influence has transcended sharing funny cat clips; it’s now a booming marketplace. By 2030, social commerce is expected to be a staggering $6.2 trillion industry. Because it lets consumers discover and purchase products with a few clicks, while offering businesses a golden opportunity to reach new audiences and boost brand engagement.Social commerce blends social media and e-commerce, allowing users to browse, share, and buy directly within their social networks.

Features like influencer endorsements, user reviews, and live-streaming shopping events all leverage the power of social connections to facilitate sales. That said, it’s no surprise that the social commerce revolution might make traditional shopping carts feel more outdated than dial-up internet. What is a brick-and-mortar retailer to do?A Social Commerce EvolutionWith their visual- and video-first approach to engagement, social platforms like TikTok and Instagram have been pivotal in shaping the evolution of social commerce.Instagram was one of the first platforms to introduce shoppable posts, allowing retailers to seamlessly integrate product promotion with their content, turning each post into a virtual storefront.TikTok’s short-form video approach has revolutionized discovery.

Forget browsing catalogs; #TikTokMadeMeBuyIt highlights the power of user-generated content, where everyday people become brand advocates, driving massive trends and sales. Product DiscoveryHow are shoppers finding the perfect products on social?A Sprout shopping study found that targeted ads are the No. 1 way social shoppers are discovering products.

The study also found that a friend’s recommendation, comments or product reviews, familiarity with the brand, and a significant other’s recommendation all contributed to why consumers purchase on social media.From Instagram to TikTok, social commerce tactics are continually evolving, creating new opportunities and challenges for retailers:1. Influencer Marketing: Partner with industry experts and celebrities to reach targeted audiences and leverage their credibility. (More on this billion-dollar industry below)2.

Live-Stream Shopping: Live-stream shopping is on the rise as an effective real-time engagement strategy. Retailers use livestreams for product demos, Q&A sessions, and behind-the-scenes looks, enhancing customer understanding and increasing sales.3. Shoppable Posts: Shoppable posts are reshaping retail by allowing customers to directly purchase products featured in posts.

This streamlined process eliminates manual searches, boosting the likelihood of conversions.4. Micro-Influencers: Micro-influencers, with smaller but engaged followings, are gaining popularity for their authentic promotion. Brands are turning to micro-influencers for a more genuine connection and potentially higher conversion rates.5.

Social Audio Emergence: Social audio, seen on platforms like Clubhouse, Twitter Spaces, and Facebook Rooms, is the upcoming trend. Retailers recognize its potential to foster intimate customer interactions, build community, and uniquely promote products. Influencers’ Sway RisingInfluencers, with their massive followings, serve as trusted voices that can influence consumer behavior.

This influencer-brand collaboration has also created a $21.1 billion industry. Brands leverage influencer marketing campaigns to showcase their products in an authentic and relatable manner, tapping into the influencers’ connection with their audiences.Instagram remains the most popular platform for influencer marketing campaigns, and a recent HubSpot survey of marketers revealed that 72% said they work with influencers and creators.Move over celebrities. HubSpot predicts that one of the top social media trends for 2024 will be more brands swapping celebrities for micro-influencers.

These are influencers with smaller, more niche accounts of 1,000 to 100,000 followers who participate in affiliate programs and are often successful at building trust in the brands with which they work because of their expertise in the area. User-Generated Content Driving SalesUser-generated content is instrumental these days for driving sales and building brand awareness on social media. By allowing customers to share their experiences with a product through photos, reviews, or videos, this builds a sense of community, authenticity, and trust.