Social Media is the Future of eCommerce

With billions of daily active users, social media platforms like Facebook, TikTok, Snapchat, and others have become an ideal place for businesses to promote their products and for customers to engage with their favorite brands, thus transforming the way we shop.

According to one study, nearly half of the world's population uses social media regularly, making it a crucial platform for organizations to reach potential customers. The integration of social media into e-commerce is only expected to grow in the future, and brands need to stay abreast of the trends, technologies, and new approaches to better take advantage of the commercial opportunities it presents.

A research into UK’s ecommerce marketing found that sales via mobile commerce are growing at 16% annually, and over 81% of UK consumers admitted purchasing a product after seeing it on social media. Therefore, social media and e-commerce go hand-in-hand, and businesses cannot expect to flourish online without a dedicated social media strategy.

The appeal of social media platforms for businesses is clear. Here are some key statistics that demonstrate the massive potential that social media holds for businesses:

 

• The combined number of users on Facebook and Instagram is 3.4 billion.
• More than 60% of Instagram users report having discovered new products through the platform.
• At least 200 million Instagram users visit business pages every day.

How Social Media is leading the Way: 2022 e-Commerce Trends

Let's look at how social media is becoming the future of e-commerce through latest trends and opportunities.

1. Facebook Messenger Chatbots

Imagine having a cashier with you all the time while grocery shopping, who can answer all your queries and help you navigate through the extensive product range.
This is not very different that what chatbots offer on Facebook Messenger! By investing in chatbots, businesses can offer a more personalized experience to their customers. With 66% of customers expecting brands to cater to their individual needs, chatbots make a perfect fit for the shopping experience the consumers wish.
Chatbots are the natural next step to enhance the convenience of shopping. Lego's chatbot, Ralph, is a prime example of this. It is available to customers 24x7 and helps them select and purchase the perfect gift based on the buyer's age and interests.

2. Shoppable Tags on Instagram

Instagram's Shopping Tags streamline the communication process between businesses and customers.
With this feature, products can be tagged directly in the images and videos shared. The tags provide comprehensive information about the product, including its description, features, price, and a purchase link to the seller's website.
Instagram post with Shopping Tags could be identified by a bag icon and the text "View Products". By clicking on the icon, brief description cards with product names and prices appear. Moreover, by tapping on the product, the seller's catalog is displayed, where customers can view detailed information about the item and find a website link.

3. “Buy Now” Button on Twitter

Previously, Twitter had a "Buy Now" button that enabled customers to purchase products directly from tweets. However, Twitter recently announced its plan to test a new shopping feature, which allows select US brands to sell products on the platform.

The new eCommerce Twitter card includes a 'Shop' button, product title, and code. The card also displays pricing details and information sourced from the relevant product page on the brand's website.

As the feature is still in the early stages of development and it can’t be said with precision at the moment how this Twitter card would look like in the future. However, it is intriguing to imagine where it will be in five years.

4. Collaborating with Micro Influencers 

It is being predicted that in the coming years, partnering with micro-influencers and investing in influencer marketing will be critical for brands and retailers seeking to expand their social media reach. Collaborating with influencers who already have the attention of your target audience is a powerful way to reach new customers.

Studies show that currently, 82% of shoppers are more likely to purchase a product recommended by a micro-influencer, making them an essential marketing tool for larger companies in 2023 and beyond.

Sperry shoe brand is an excellent example of a company doing it right. They launched a two-week influencer campaign that raised awareness for their cold and wet weather shoes. To drive engagement, they teamed up with a series of fashion micro-influencers with engaged followings. The influencers then  posted images of their Sperry boots using #OOTD (outfit of the day).

By collaborating with influencers who have a real connection with the brand and product, Sperry's campaign was able to gain visibility and successfully reach their target audience.

5. The Rise of Social Commerce

Social commerce is revolutionizing the way brands sell their products online by offering direct shopping experiences on social media platforms. It's an effective way to reach consumers where they are, provide them seamless shopping experiences, and tap into the eCommerce boom.

For instance, Eureka, a well-known furniture store in Australia, is leveraging social commerce to its advantage. They've integrated shoppable Instagram and user-generated content (UGC) galleries into their website, and even created shoppable social galleries with Taggbox Commerce to increase sales and traction. These innovative strategies allow customers to purchase products directly through social media, eliminating the need to visit the website or a physical store. As social commerce continues to grow in popularity, businesses must adapt and implement these strategies to thrive in the competitive eCommerce landscape.
Social media revolutionizing the shopping experience

Although there have been significant advancements in social media and e-commerce, the results in this area have been lackluster. While social media does affect consumer perceptions of products, it is yet to live up to expectations as a direct e.commerce tool. A recent survey by SUMO showed that 82% of online shoppers have not used any form of social commerce.

Despite this, businesses remain optimistic about the potential of social media in e-commerce. According to the same report, the biggest concerns hindering mass adoption are security and privacy, but customers are increasingly open to shopping directly through social media. For instance, 74% of shoppers are now open to purchasing through a chatbot, up from 55% in 2016. Additionally, 30% of online shoppers claim they would be likely to buy through a social media network.

As consumer spending habits continue to shift towards online shopping and away from cash payments, social media's potential for e-commerce cannot be ignored. With the average person spending over two hours a day on social media, it is clear that brands need to provide frictionless shopping experiences through these platforms. While there are still concerns around security and privacy, the willingness of consumers to shop through social media is steadily increasing. As social media networks continue to experiment with e-commerce, we can expect the user experience and transaction methods to become more efficient, making social commerce a more viable option for consumers.
Bottom Line!

In conclusion, social media has become an integral part of e-commerce, providing businesses with opportunities to increase brand visibility and drive online sales. By leveraging user-generated content and social media strategies, brands can create engaging experiences that resonate with customers and influence their purchasing decisions. As social media continues to evolve and grow, it's crucial for businesses to adapt and stay ahead of the curve to remain competitive in the e-commerce landscape. Ultimately, the intersection of social media and e-commerce presents a wealth of opportunities for businesses to connect with customers and drive growth in the digital age.

Contact Us!

At Icon Digital, we specialize in creating social media marketing strategies that help businesses reach their target audience, increase engagement, and drive conversions. Whether you're looking to boost brand visibility, generate leads, or drive revenues, we've got you covered.

To learn more about our social media advertising services, please don't hesitate to get in touch with us. Our team of experts will be happy to help you get started with developing a customized social media marketing plan that meets your unique business needs