Social Commerce: The Future of Shopping Passes through Social Media

Oct 9, 20245 min read

Updated: Nov 18, 2024

Author: Lorenzo D'Amore

Publication date: 09/10/2024

In an increasingly interconnected world, shopping patterns have changed completely in recent years. Indeed, the advent of digital has revolutionized the way people shop all over the world. The question to ask is: where can companies find billions of potential customers every day, at any given time? On social media platforms. This is why social media commerce is fast becoming the standard for shopping and continues to grow by the day. In this article we will try to understand together how Social Commerce is influencing consumer shopping around the world, analyzing customer behaviour and some possible strategies that companies can adopt to foster this new form of virtual shopping.

What is Social Commerce?

Social commerce is an evolution of traditional e-commerce that harnesses the potential of social media to make the shopping experience simpler, faster and more engaging. Customers no longer need to leave their favourite social media platform to buy what they want. With a simple click on a photo or piece of content, the user can make the purchase directly from the platform, making the buying experience much more interactive while providing the seller with valuable information about their target audience. The main principles of this type of online shopping are content sharing and customer interaction. In social commerce, the buying process is reduced to 2 steps:

-inspiration, which occurs through content shared by brands or users on social networks

-the purchase of the product, which can take place directly on social networks or through a direct link that takes the user to an external marketplace.

But how does a potential social commerce purchase actually happen?

Shopping no longer follows a linear pattern. Consumers move from channel to channel, making purchases ‘intermittently’ throughout the day, based on the moments when they feel inspired or motivated. To captivate customers and stay relevant in the marketplace, brands need to create compelling content for micro-moments, those short periods of time when consumers pick up their mobile devices to fill moments of their day and when people engage in social shopping. For example, it might happen that consumers are queuing for their morning coffee, scroll through their Instagram or Tik Tok feed, and see an ad for a pair of shoes they have been looking for a long time. But then their order is ready, so they quickly close their phone, grab their cup of coffee and continue with their day. At lunchtime, they see a post on Instagram from the same company, which directs them to the brand's website, where the shoe's various comforts and durability over time are detailed. A few days later, the consumer sees a targeted ad on Instagram, this time with a discount code. The customer clicks on the ‘Buy Now’ button and, at the end of the week, the shoes are delivered to their home. In essence, for customers, social commerce could offer a convenient and immediate option to search and buy products, while for businesses, it would be an effective tool to quickly increase their visibility and expand their customer base.

What are the advantages over traditional online commerce?

1)Direct interaction with customers: Companies have the opportunity to answer customer questions, provide support and encourage feedback in real time, thus creating a more authentic and close connection with their audience.

2)Ease of sharing and discovery: This facilitates greater visibility and the opportunity to discover new products, which can translate into increased sales.

3)Personalisation of offers: This enables more relevant and tailored shopping experiences, increasing the likelihood of conversion.

4)Greater reach: This significantly expands sales potential and can open up new avenues for business growth.

What are the best strategies to promote products organically?

1)Collaborate with influencers: Identify figures that are relevant to your industry and target audience and work with them to promote your products in an authentic and credible way.

2)Use integrated shopping features: Allow users to buy directly from social media posts, simplifying the buying process and increasing conversions.

3)Leverage customer reviews: Reviews are a very powerful persuasive tool.

4)Optimize the use of hashtags: Hashtags can improve the visibility of your social posts, making them more easily found by users interested in your products.

How are the major social networks doing in this regard?

In 2019, Instagram launched the Checkout feature in the US, allowing users to purchase products directly within the app without leaving to complete the payment. When they find a tagged product in a post or story, they can click on the tag to view details and the ‘Checkout on Instagram’ button. From there, they choose options such as colour and size, enter payment and shipping information, all on Instagram. This feature reduces interruptions in the path to purchase, enhancing the user experience and promoting conversion from simply viewing to purchasing. For brands, this increases the chances of sales by removing obstacles that could cause customers to switch between platforms.

TikTok, for its part, has also made great strides in social commerce, using its popularity among young people to facilitate in-app purchases. In 2021, it partnered with Shopify, allowing businesses to sell products on TikTok via the Shoppable Ads feature. This integration allows shoppable ads to be created directly in short videos, offering a smooth and immersive shopping experience. Users can buy without leaving the app, simplifying the sales process and increasing conversions. Companies can leverage advanced targeting options to reach a targeted audience, while small and medium-sized businesses benefit from the platform's virality, turning TikTok into an effective sales tool.

What should we expect from the world of social commerce in the future?

The future of social commerce looks extremely promising, with an increasing number of platforms integrating direct shopping features. This evolution will allow consumers to enjoy increasingly fluid and engaging shopping experiences, while brands will be able to leverage real-time data and interactions to personalize offers and strategies. Moreover, continuous technological innovation, such as the introduction of new technological features like the metaverse, virtual reality and artificial intelligence, could make the shopping process even more immersive and integrated with social content. As a result, social commerce will increasingly become an essential channel for connecting with consumers in a more authentic and direct way, opening up new avenues for customer loyalty and expansion.

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The Future of Social Commerce: How to Sell on Social Media Platforms