The Rise of Social Commerce

Times are changing (fast!), and so is the way we spend money. Due to the pandemic, the days of loose change lessen, online sales are up. As part of this phenomenon, we’re seeing social commerce becoming a force to be reckoned with.

Social Commerce

What is Social Commerce?

Social commerce falls under the larger eCommerce umbrella, and refers to a shopping experience that occurs directly on a social media platform. It can also include clicking links on a social network that lead to a retailer’s product page with an immediate purchase option.

The Rise of Social Commerce

Social media usage continues to grow by huge 16.5% year-by-year. More people are online, the average time spent per day on social networks increased from 56.23 minutes in 2019 to 65.44 minutes in 2020 (Insider). As offerings increase, new platforms are established and technophobia decreases—social media now part of Kiwi daily life for 3.6 million.

As we all become more tech-savvy, and physical shops are harder to access, we are more likely to purchase online. My grandma even buys her grocery shopping online now.

Let’s have a quick look at 2020

– Research by NZ Post showed that online shopping increased by a whopping 105% when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently.
– As internationally there is still uncertainty, and with lockdowns being quickly implemented, social commerce is one of the best options for making sure you still receive sales.
– Forecasts predict that in 2021, US retail social commerce sales will rise by 34.8% to $36.09 billion in 2021, representing 4.3% of all retail eCommerce sales (Insider).

It’s time to get on the bandwagon!

87% claim that Facebook helped make a decision
57% shopping more since the pandemic

Reference: Social Media Today

The Top Social Commerce Super Powers

Stop for a second and think about how you purchase online.

It is all linked.

Unsurprisingly, Facebook’s massive scale and link functionality drives it to the top of the list. According to a June 2020 survey conducted by Bizrate Insights, Facebook had the highest penetration of users that had conducted a purchase on the platform at 18.3%.

In second place is—you guessed it—Facebook’s associated platform: Instagram. According to Linqia’s “The State of Influencer Marketing 2020” report, Instagram ranked as the top social media platform among US marketers at 97%.

As for what people are buying? Fashion categories including apparel and accessories are currently the highest performing areas in social commerce.

Ready to harness the super power of social commerce? Get in touch with us to hatch a plan.

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