What is Social Commerce?

Discover how social commerce is impacting retail and learn how to integrate it into your current strategies to boost sales.

A crowded collection of social media icons next to people doing online shopping

Remember the days when the Home Shopping Network was the epitome of cutting-edge shopping? You'd watch hosts enthusiastically pitch products, complete with dramatic close-ups and urgent calls to action like, "Call now, and we'll throw in a second set for free!" It was a simpler time, and while the fashion might not have aged well, the concept of blending entertainment with shopping was a hit.

Fast forward to today, and that concept has evolved into something far more sophisticated and pervasive: social commerce.

Social commerce is sort of like the Home Shopping Network on steroids, with influencers as hosts, Instagram and TikTok as the channels, and a global audience ready to click 'buy' at a moment's notice. But what exactly is social commerce, and how does it differ from e-commerce? Let's understand the differences, how it all works, and explore how retailers can leverage social channels to supercharge their sales.

What is Social Commerce?

If you’ve purchased any product after seeing it promoted on social media, you know what social commerce is. It's the process of selling products directly through social media platforms, allowing consumers to discover and purchase items often without ever leaving their favorite apps. Unlike traditional e-commerce, where shoppers visit a website to browse and buy, social commerce is all about meeting customers where they already are—scrolling through their feeds, watching videos, and engaging with content.

The key difference between social commerce and e-commerce is the role of the community and interaction. Social commerce leverages social proof, user-generated content, and influencer endorsements to create a more engaging and trust-building shopping experience. It's the modern-day equivalent of getting a recommendation from a friend, but with a much broader reach and the added convenience of instant purchasing.

The Social Channels Driving Social Commerce

Social commerce is happening on a variety of platforms, each with its unique features and audience. Let's take a look at some of the major players and how retailers can take advantage of them.

Instagram

Instagram is a natural fit for social commerce, thanks to its visually driven nature. With features like shoppable posts, stories, and the Instagram Shop tab, retailers can showcase their products in a highly visual and engaging way. Influencers play a big role here, often sharing posts and stories that highlight products, complete with direct links to purchase.

Retailers can take advantage of Instagram's visual appeal by creating high-quality images and videos that not only show off their products but also tell a story. It's about creating a lifestyle that consumers want to be a part of, and then making it easy for them to buy into that lifestyle—literally.

TikTok

TikTok has taken the world by storm with its short, engaging videos and viral challenges. For retailers, TikTok offers a unique opportunity to reach a younger, highly engaged audience. TikTok's shopping features, like in-app purchasing and shoppable livestreams, make it easy for users to discover and buy products without leaving the app.

Retailers can harness the power of TikTok by creating fun, creative content that resonates with the platform's audience. Whether it's a product demonstration, a behind-the-scenes look at how products are made, or a participation in a viral challenge, the key is to be authentic and entertaining. And don't forget to collaborate with TikTok influencers who can amplify your reach and drive sales.

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Facebook

Facebook may have started as a place to connect with friends and family, but it's also become a powerful tool for social commerce. With Facebook Shops, businesses can set up an online store that's accessible via both Facebook and Instagram. The platform's extensive ad targeting capabilities also make it easy for retailers to reach specific demographics and promote their products.

Retailers can make the most of Facebook by building a community around their brand. Engage with customers through posts, live videos, and groups, and encourage them to share their experiences and feedback. This not only helps build trust but also creates a loyal customer base that's more likely to make repeat purchases. Of course, be cognizant of the age demographics you’re most likely to reach on the admittedly aging platform. If you’re aiming for Gen Z, probably look elsewhere!

Pinterest

Pinterest is often overlooked in the social commerce conversation, but it shouldn't be. The platform's focus on discovery and inspiration makes it a natural fit for shopping. Pinterest's Shopping Ads and Shoppable Pins (also known as Buyable Pins) allow users to shop for products directly from their boards and pins, making it a seamless experience from discovery to purchase.

For retailers, Pinterest is all about creating visually appealing pins that inspire and inform. Whether it's fashion, home decor, or DIY projects, the goal is to provide value to users and make it easy for them to purchase the products they discover. Rich pins that include pricing and availability information can also help drive conversions.

YouTube

YouTube has long been a go-to platform for how-to videos, product reviews, and unboxings, but it’s also the second most-used search engine on the internet as well as a formidable foe against TikTok with their own version: YouTube Shorts. This makes it a powerful tool for social commerce, especially for products that benefit from demonstrations or detailed explanations. YouTube's shoppable videos feature allows viewers to click on products directly from the video, making it easy to go from watching to buying.

Retailers can leverage YouTube by creating content that showcases their products in use, provides tutorials, or offers in-depth reviews. Collaborating with popular YouTubers can also be an effective way to reach new audiences and add credibility to your products. The key is to create engaging, informative content that not only entertains but also guides viewers towards a purchase decision.

Extending Clienteling Strategies Across the Omnichannel

One of the most exciting aspects of social commerce is how it extends traditional clienteling strategies into the digital realm. Clienteling is all about building personal relationships with customers and providing tailored shopping experiences. With social commerce, retailers can continue these relationships online, using data from social interactions to offer personalized recommendations and exclusive offers.

For example, if a customer frequently engages with your brand on Instagram, you can use that information to tailor your communications and offers to their preferences. This not only enhances the shopping experience but also fosters loyalty and repeat business. It's like having a personal shopper who knows exactly what you like, but with the convenience of shopping from your couch.

So by integrating shopping into social media, retailers can reach customers in new and engaging ways, leveraging the power of community, influencers, and user-generated content to drive sales. Of course, you can’t solely rely on social media to be the cure-all for your retail endeavors. But along with a good in-store and general ecommerce strategy, your social media “window fronts” can mean big business.

For retailers, the key to success lies in embracing these new channels, understanding their unique strengths, and using them to build stronger, more personalized relationships with their customers. Sometimes, the real ecommerce magic happens when shopping becomes social.