Social commerce is the simple act of buying and selling products and/or services on social media. Social commerce has experienced huge growth in recent years. In 2020 it increased by almost 38% to $26.77 billion. It is expected to surge well beyond $50 billion annually by 2023.
The difference between ecommerce and social commerce is that ecommerce occurs on a website and not on a social media platform. Ecommerce usually occurs on sites like Shopify or Amazon that are accessed through a desktop or mobile device.
One key to social commerce over e-commerce is how quickly a purchase is made. With e-commerce, digital ads, social media posts, and a variety of other marketing strategies are all used as tactics to direct consumers to an online store. After being directed to that store, there are a number of other steps the user must go through before purchasing the product. This may include things like creating an account. All of these steps come with the risk of losing the buyer’s interest. In fact, over 92% of active users use a mobile device to access the internet. Mobile users have a cart abandonment rate of almost 86%. To top it off, not all ecommerce sites are mobile friendly. All of these are reasons why social commerce is becoming even more popular.
With social commerce, you won’t need to reroute customers to an online store. Instead, you make the store accessible right where the customers are. It allows the customer to checkout right through social media platforms without taking unnecessary steps. The entire process is streamlined. This makes things easier for the buyer which translates to more sales for the retailer.
There are a number of other benefits to social commerce as well. The number of social media users across the globe is expected to reach 4.4 billion in 2025. As impulse buying plays a huge role in the purchase process, streamlining it is crucial to preventing the sale from falling through.
Social commerce can also help build brand awareness. Reaching your target audience is even easier with social commerce because most of your customers are already on social media. This will allow you to connect with your customers in a more personal way. Since social media platforms usually have analytic capabilities that allow you to track buying habits over time, you’ll be able to direct your content to your target audience.
Perhaps most importantly, social media platforms allow easy and convenient buying. Things like buy buttons and in-app checkouts remove hassles and unnecessary steps in the process of buying our favorite products.
Social commerce has inherent proof of your products or services for hesitant buyers. Many customers may not be convinced of your product until they see reviews, talk to past customers, or compare similar products. But social commerce has built-in proof. Comments, likes, follows, etc. create positive feedback. As users continuously interact with your product, more customers will begin to trust your brand.
The most fascinating aspect of social commerce is that it is always evolving and adapting to changing consumer trends. On the same lines, ringID, the next-generation platform for Social Commerce powered by Fintech, is empowering millions through its platform.
With over 20 million active users, RingID is a social media platform used primarily in South Asia, but its popularity is growing every day. It has a bit of everything, allowing users to engage with each other in unique ways.
As far as social commerce goes, it is a leader in the field. Users can also set up a profile that promotes a service. This service could be advice, opinions, legal aid, etc. They can either offer this for free or charge a subscription fee.
Influencers can also create free Virtual Storefronts where they can feature their favorite products. Products can be from any brand. Users can then interact with that influencer via live broadcasts, posts, or whatever the influencer chooses to share. If users decide to purchase a product from a Virtual Storefront, the influencer will receive a commission. One unique feature of ringID that comes in very handy during this buying process is the built-in wallet. The buyer can use their wallet to buy the product, and the influencer receives their commission directly into their ringID wallet.