Why Social Selling is the Future of Ecommerce

We recently read that Facebook is testing a dedicated shopping feed where users will be shown aggregated products from different retailers based on the things they’ve liked in one convenient place i.e. right from within Facebook. This new development in the platform’s ongoing bid to consume the shopping experience got us thinking about the convergence of ecommerce and social media and what it means for the future of more ‘traditional’ methods. We had a look at how some of the big social media players are contributing to the rise of ‘social commerce’ and how you can leverage these trends for your own business.

Social Selling via Facebook

Facebook is already responsible for 64% of social revenue due to the launch of their popular carousel ads last year, as well as the familiar sidebar and newsfeed ads. They disclosed that during the testing stages of the carousel format, advertisers reported a 30-50% lower cost-per-conversion than with previous ad types. So this begs the question, will the new shopping feed functionality prove as lucrative for ecommerce companies? As with the potential ‘buy’ button and payment options on the horizon, time will tell.

Facebook’s certainly taking all the right steps to leverage the ecommerce opportunity to its fullest and their success lies in removing the barriers or difficulties that could be associated with online shopping. Integrating ecommerce with social media offers users a streamlined and immersive shopping experience that will prompt retailers to revisit, rethink and possibly reinvent their approach online.

Social Selling via Pinterest

A March 2015 study showed that 93% of Pinterest users visited the social network prior to making a final purchasing decision, and 87% of users purchased a product as a direct result of visiting the social media channel. Since June, Pinterest has implemented ‘buyable pins’ where users can directly buy what they see using either Apple Pay or their credit card.

This means that when a user sees something they like from a brand, they can buy it without having to go the company website and search for it; the average order value from Pinterest is almost $60, which is higher than on any other social platform. So if your brand isn’t utilizing the platform already, it might be time to think about whether it’ll work for you!

Social Media Goes Offline

In some cases, the line between social media and retail blurs completely; US department store Nordstrom is a prime example of this. The department store carried out an online social marketing campaign called “Pinspiration” where they showed their website visitors which of their products were most popular amongst Pinterest users.

This campaign was also extended to in-store promotions, where they had shelves showing customers which items, available in-store, were popular with pinners. Flipping the buyable pins concept around like this shows that even physical stores are leveraging the relationship between social media and online retail.

So what does this mean for you?

Social media has (and will continue to) change the way we shop. We are the convenience generation and that’s exactly what social selling will bring – more convenience. Pretty soon, we won’t even have to leave our Facebook, Pinterest or other social media accounts to buy what we would usually go trawling the web for.  

Social media is already a place to share and exchange ideas and this is something that ecommerce companies can leverage by allowing users to add purchases into the mix. It might be time to start thinking about whether social commerce is something that might work for your brand, now or in the near future. In any case, social media is a powerful tool that ecommerce businesses can’t afford to ignore. Start reinforcing your online communities because chances are, they’re your first potential social shoppers. more info

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