What is social commerce (s-commerce)?

It differs from conventional online shopping as it integrates product discovery, customer reviews, ratings, sharing, product recommendations, direct transactions, and loyalty programs into the social media context.

How does social commerce work?

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S-commerce is defined by the integration of shopping into social media platforms so that companies can sell to consumers where they spend most of their time. TikTok, Instagram, and Facebook have come up with a direct buy from within the app.

Social commerce can be used as both an organic and paid channel. Advertisements, influencers, and limited-time social media offers are used by companies to make sales while monitoring the performance of the platform. Data and AI-enabled personalization increase the interaction by providing consumers with product recommendations based on their preferences.

📖 From social platforms to profit: Comprehensive strategies for transforming mobile apps into social commerce revenue generators.

What is the difference between social commerce and e-commerce?

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E-commerce and social commerce are meant to help companies reach their customers and sell online. However, they work differently regarding engaging customers, shopping, and marketing strategies.

Shopping experience

• E-commerce directly engages customers with brands and leads them to purchase from a particular website or online store. This means customers must visit a website, select products, and buy more efficiently.
• Social commerce allows customers to make purchases within the social media platforms themselves, thus capturing them at the moment when they are most likely to make a purchase. This decreases friction from product discovery to checkout, as the buying process is straightforward.

Customer acquisition & marketing strategies

• E-commerce stores depend on digital marketing tactics, such as SEO, paid advertisements, and email marketing, to drive business traffic and convert visitors into customers.
• Social commerce integrates social media networks into the buying process to interact with consumers through post interactions, influencer marketing, and algorithm-induced product suggestions.

Cost & infrastructure

• E-commerce is usually more expensive to set up and manage than a typical online store, which needs website development, hosting, security, and regular maintenance.
• Social commerce is generally less expensive than traditional e-commerce since it does not require a full-blown e-commerce site. However, companies can still spend money on promotion, working with influencers, and buying social media ads to raise awareness and increase conversion rates.

Data & personalization

• Social commerce platforms use algorithms and data analysis to understand consumers' behavior and provide brands with information on their tastes and habits. Real-time personalization at this level is challenging with a standalone e-commerce site.
• E-commerce sites gather data from customers' actions on the website, including browsing behavior and previous purchases. Still, the behavioral data level is limited compared to that of social media platforms.

Accessibility & user behavior

• E-commerce requires buyers to visit a company's website with the intention of buying, so advertisers must spend money on ads, improve their search engine ranking, and create quality content.
• Social commerce happens when the customer is already active on the platform, which makes the conversion process faster. People can find and buy products within the social media apps they use regularly, with minimal distraction and a high chance of making a spontaneous purchase.

What are social commerce examples?

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Here are some cases of companies that have successfully tapped social commerce to grow their business:

• Nike has taken the opportunity to display its products on Instagram. Using posts and stories, they can 'tag' products, meaning that customers can easily navigate the products and buy them right from the app. With the help of influencers and interesting marketing actions, Nike has enhanced its D2C approach and increased sales.
• Kylie Cosmetics has gained most of its popularity through social commerce strategies, using Instagram and TikTok as the primary channels to sell its beauty products. The brand has been known to work with influencers. It offers product launches exclusively for social media with immediate availability of the products for purchase through Instagram Checkout and TikTok Shop.
• Sephora has adopted live shopping on Facebook and Instagram, where beauty gurus showcase products to customers in real-time. Customers can purchase on the spot through purchase links provided within the live sessions.

Why is social commerce important?

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Social commerce is changing how people shop online, making it more convenient, fun, and personalized. Therefore, companies can cut down the leads and increase the conversion rate by directly targeting the customers within the social media platforms. Here are the main benefits:

• Higher engagement and brand awareness: This strategy involves using interactive content, influencer marketing, and user-generated reviews to engage customers and gain their trust.
• Faster path to purchase: Some apps have features like Instagram Checkout and TikTok Shop, allowing people to buy products through the app.
• Data-driven personalization: AI-driven algorithms for showing ads and product recommendations to users to improve sales.
• Cost-effective sales channel: It also eliminates the need for a complete e-commerce website, thus reducing costs.
• Mobile-first approach: Mobile-optimized shopping occurs within the context of mobile-first experiences, where social commerce interacts with consumers as they shop.
• Influencer-driven trust: Social proof, such as influencers and reviews, also helps trust and boost conversions.