Social media platforms are everywhere and everyone is using at least one of them right now. As a result of the rise of social media platforms and social messaging, those who run a business are going to look to how it can be financially beneficial for them. Yes, we are talking about social commerce. Let’s take a look at some information you need to know about social commerce.
What is Social Commerce?
Social Commerce (sCommerce): A digital initiative that uses social media to assist in the buying and selling of products and services.
The goal of sCommerce is to increase:
- Customer engagement
- Brand equity
- Social Proof
- In the hopes of building stronger customer relationships, community and trust.
Social Commerce Statistics
According to Shopify:
- Facebook is the dominant source of social traffic
- Shopify example: ⅔ of Shopify sales and 85% of all eCommerce orders from social media come from Facebook
- Polyvore generates the most order value
- Facebook’s conversion rate is 1.85% making it the highest
According to Statista:
- Worldwide social commerce revenue is $20 billion
According to Business Insider:
- Social commerce is driving huge increases in retail traffic
- Retailers should focus on mobile social commerce, while social engagement with retail content is the least shared. “Social media users are 35% less likely to share a brand’s or retailer’s social post on mobile than they are on desktop computers”
- Pinterest has a small user base but is still a major play in the social commerce realm
- Pinterests drives 16% of social revenue and this number should increase with Pinterest’s new “Buy Now” buttons
- Twitter’s role in social commerce is expected to help sporting and event marketers
Research by Statista showed that 93 percent of millennials are spending their time on social networks, so it makes sense that businesses would want to capitalise on social commerce. There has already been the rise of WeChat social commerce in China. In April 2016, it was reported 31% of users initiated purchases on WeChat, which is twice as many as the previous year. This proves that social commerce has its potential.
Are you leveraging your business on social commerce?