By 2nd quarter of 2017, Social commerce accounted for 17% of the total global online shopping orders. In a study done by Marketing Week in 2016, around 60% respondents claimed that images on social media channels directly inspired/influenced their purchase decisions – across categories. Not surprisingly, it’s the younger demographic driving this trend with 33% between 18-24yo saying they would like to purchase directly from Facebook, 27% on Instagram, 20% on Twitter, 17% on Pinterest and 15% on Snapchat. With global retail eCommerce sales predicted to reach $4.5 trillion by 2021, these numbers become too significant to be ignored. It’s reported that Social commerce will reach $165 billion by 2021. All major social channels have ‘commerce’ features like ‘shop now’ stores on Facebook, ‘buyable’ pins on Pinterest or ‘product tags’ on Instagram. Social commerce is not just about B2C or B2B, it’s also peer-to-peer commerce. Facebook Marketplace, the leader in this space is providing users with a convenient and safe way to buy/sell personal items. There are few considerations while developing social commerce tactics for brands:
With social commerce rising, brands need to rethink their goals for social media channels – not just engagement or lead generation metrics but setting targets for direct sales.