Social websites have become key locations for brand marketing in recent years. Brands allocate significant budgets to purchase ads and host events on social websites in order to generate more fans, likes, messages, and shares. Social websites allow them to forge close links to their consumers in a rapid, low-cost manner. However, the marketing potential of social websites does not stop there. The function to order items via posts and integrated one-click ordering is now available in Europe and the US. When paired with comprehensive backend order handling systems, this successfully stimulates even more business potential. G!VOICE’s bold prediction is that social websites will grow to become key online shopping venues in the future! Want to learn more about the pioneering business potential of social websites? Gain an in-depth understanding through G!VOICE!
What is Social Commerce?
Social commerce is when a brand posts the photos, description, and prices of products onto a social website to offer consumers a simple, quick way purchasing method. Take Soldsie, the first company in the world to offer social commerce functionality, for example. When companies using Soldsie’s services post the photo and description of a new product on Facebook, the customer simply has to post the comment “sold” below and the order is automatically delivered to the customer’s e-mail inbox. This carefully designed ultra-minimal shopping protocol stimulates impulsive shopping behavior amongst consumers. This word-of-mouth marketing model which spreads as product posts are seen, discussed, and recommended by the buyers’ friends and family have brought astonishing order volumes to various brands. Smocked Auctions, which sells clothing for babies and children, generated a shocking annual revenue of 450 million in the short year it utilized Soldsie!
▲The message order mechanism which Soldsie provides allows customers to shop with ease simply by leaving a “sold” comment on Facebook!
Why does social commerce hold this allure for brands?
- When combined with the data analysis functionality of social websites, brands can set marketing strategies appropriate to customers’ internet usage behavior
- Compared to more traditional shopping platforms, the brand is able to interact more with customers through comments and likes
- Social media has transformed from a marketing tool to a profit-centric, low-cost sales channel for brands
- According to Soldsie’s research report, 70% of products placed in a customer’s shopping list on a social website are successfully purchased. This is an astonishing figure compared to the 30% purchase rate of traditional online shopping platforms.
Why do customers make successful purchasing through social commerce?
- The enjoyable experience of shopping with family and friends in real life is recreated on the internet via social websites
- Saving time and effort is seen as a major advantage by internet shoppers. Social commerce allows consumers to shop while browsing social websites, making the process completely painless
▲Twitter tried out its “buy now” function with a non-profit organization to avoid immediate negative feedback from users
Though the concept of social commerce was originally proposed in 2012 through establishing online stores on Facebook, the lack of differentiation between Facebook and traditional online stores in addition to brand and consumer distrust of social website information security mechanisms have impeded the success of social commerce. Current methods integrate shopping into social activities, such as Soldsie’s comment orders. Twitter and Facebook are now testing “buy” buttons which will make shopping part of socialization without obstructing the user’s view of other comments. Once social media websites have established complete shopping systems and nurtured trust for their information security mechanisms amongst users, social commerce will soon leave traditional shopping platforms in the dust!
References:
http://goo.gl/zag65d
http://goo.gl/OR02xW
Photo Sources:
http://goo.gl/4GCeSB
http://goo.gl/S18vzp
http://goo.gl/7HswMK