What is Social Commerce & Tips for Small Businesses

How did you learn about your last purchase online and buy it? Chances are you must have found it on social media and then purchased it on that same platform. This experience, which we are all too familiar with, is referred to as social commerce. So what is social commerce and how is it different from your regular social media management process?

Social commerce is the direct selling of products on social media. The entire shopping process – from product discovery to the checkout process – takes place on a social media platform.

For shoppers, social commerce offers convenience. They can buy what interests them while they go about their usual browsing habits. For businesses, selling on social networks plays on impulse. This results in instant sales.

Investopedia’s social commerce definition is that it is “the creation and posting of messages and interactive features that promote online sales and other e-commerce initiatives”.

A business engaged in social commerce typically offers personalized buyer options; use videos to showcase the product in use and from multiple angles; and offers promotions and giveaways to select customers who share their purchased products on their feeds.

A recent study suggests that 52% of socially-engaged shoppers have purchased through a social media platform, while 35% of their non-socially engaged counterparts purchased via social commerce.

With more people joining social networks, it is undeniable that social commerce will forever change the way businesses sell and customers buy.

Social commerce vs. e-commerce

Ecommerce refers to the selling of products through a website or an app, while social commerce pertains to the selling of products within a social media experience. Social commerce is e-commerce and more. It involves the entire sales cycle: prospecting, value proposition, closing a deal, and the delivery of after-sales services.
Social selling is about building connections with prospects, interacting and engaging with them to understand their pain points, apart from directly offering the solutions provided by your products.
As ‘The Rise of Social Salespeople’ author Jim Keenan puts it, “Selling through social channels (social selling) is the closest thing to being a fly on the wall in your customers, prospects and competitors’ world.”
Taking this cue, you may consider e-commerce as a store and social commerce as a store, plus relationship-building. If you want to reach your prospects and customers on a deeper level, social commerce will be worth your time.

Why go for social commerce?

Social commerce, just like any other marketing strategy, requires time and monetary investment. It also requires adept communication skills and technical know-how. If done right, your digital marketing, and social commerce hard work will pay off!
Social commerce offers benefits for your business such as:

1. Getting access to an almost unlimited pool of prospects.

There are about 3.78 billion active social media users today. This is nearly half of the global population. Each user is a potential customer for your business.

2. Boosting your search rankings on Google and other search engines.

By actively promoting on social networks, you reach out to a large audience that might make a purchase right on the spot or check your website for more information. The traffic generated from your social media accounts will help boost your search rankings.

3. Creating a deep connection with your prospects and customers.

Gone are the days when businesses simply delivered their promotions and let customers call a 1-800 hotline for their queries and complaints. With social commerce, people expect businesses to be available 24/7 for customer support.

4. Satisfying your customers and transforming them into brand ambassadors.

“Word of mouth” has turned digital. But unlike hearing a recommended product from someone else, social commerce has allowed product raves and rants to spread like wildfire. Exceed expectations, and turn your customers into brand ambassadors.
Social media marketing has become an indispensable aspect of an effective digital marketing strategy framework – more so because of the rise of social commerce. It is not just because your competitors are on social commerce. It is also because your customers are on social sites. Be where they are.