Social media was once used for photos and videos of entertainment, connections, and communication. Today, social media is used for an array of different purposes like Shopping, Marketing, Building Community, and many more. D2C brands’ success has been unstoppable because of this digital revolution. With its capabilities of providing direct access to target consumers without time and distance restrictions, social media helps us to reach a wide audience in a short amount of time.
In 2020, there were around 80 million social buyers in the US, an increase of 30% from the previous year.
Additionally, as the pandemic increases the impact of digitalization, both brands and consumers have experienced a change in their respective purchasing and selling behaviors. The use of eCommerce and social media has changed consumer shopping habits, triggering an increase in social commerce platform usage.
Social eCommerce is a trend that originated in Asia and has spread globally. Especially in India, the growth would be imminent, since a large part of the population uses social media, from Facebook, Instagram, Twitter, Snapshot, Pinterest, etc. Almost every business is trying to integrate social eCommerce into their operations, as part of the larger eCommerce sales category, social commerce is expected to reach $4.2 trillion this year.
The rise of social commerce creates a lot of opportunities for D2C brands since they frequently use social media for awareness, influence, and sales.
D2C brands and social commerce benefit from the fact that their consumers spend the majority of their time on platforms where they are active. If you look at Instagram or Pinterest, two platforms that target the same generation, you will find that the evolution of D2C and social commerce is directly connected to these digital media platforms.
A survey conducted in June 2021 found that 35% of respondents were influenced by social media ads when purchasing. Generation Z respondents are more likely to be influenced by social media ads at 75%. Among social media users ages 18 to 24, 55% made at least one purchase on social media, followed by those 25-34. In a recent survey, 54% of Gen Z shoppers and 58% of Millennials agreed that social media platforms are better for discovering new products than online searches.
The compound annual growth rate (CAGR) for social commerce is expected 28.4% from 2021 to 2028.
More than two-thirds of global internet users use social media to buy products.
You can offer your audiences exciting shopping opportunities via digital platforms they prefer with social commerce. So why not use it? Listed below are the top strategies which you can use to increase social commerce worth for your business.
- Choosing the Right Social Media Platform –
Compared to e-commerce, social media shopping is a more interactive experience. Every day, millions of people use a wide variety of social and digital platforms, but brands have restricted resources to use for digital advertising. Shoppers say they research products on Instagram and Facebook before purchasing them, claiming that up to 81% do so. Facebook, Snapchat, and TikTok have all started expanding their social commerce offerings and are gaining ground with Instagram and Pinterest.
One million Facebook Shops are active every month, with over 250 million active participants by Q1 of 2021. If you compare Pinterest users with people on other social media platforms, they’re 7x more likely to say Pinterest is the most influential in their purchase journey. In the period July 2020 to February 2021, Instagram Shopping contributed 80% of total sales to one retail brand, Jane.
In the U.S., Facebook is the top social commerce platform with 56.1 million buyers.
Brands pursuing social commerce should gather and analyze detailed information about target audiences’ preferences before moving forward. Understanding your customers will make it easier to figure out the best channels to target for marketing campaigns.
- Organize live shopping events –
With eCommerce, consumers can purchase their favorite products from anywhere around the globe and have them delivered right to their homes or offices. It’s interesting to note that live streaming shopping in a way modernizes the age-old practice of home shopping. Conceptually, nothing changes, just the channel.
In China, live stream shopping accounts for $312.5 billion.
The advantage of live shopping is that customers can view products in actual time, and sellers can showcase their products. By leaving comments on the live video, users can gain more insight into the product, just like on Instagram Live. Review and recommendation information is flashed on the screen, guiding viewers during the selection process. Viewers are captivated by live commerce, which is immersive and entertaining. Video and retail merge is better engagement, to bridge the gap between products and customers, and drive sales. Online Marketplaces, Live Auctions, Influencer Streaming, Tutorials, Live Events, Gamification, and Interactivity are the most common formats for live shopping today.
- Create a content creators’ network for your brand –
There is no doubt that in 2022, there will be an explosion of creativity and the emergence of a new type of economy fuelled by more than 50 million content creators across the globe and on social networks. Now the social platforms allow purchases through their apps, and creators can tag products directly on their posts. Globally, it grew by 42% this year to $13.8 billion and is expected to reach $15 billion by 2022. Spending on influencer marketing rises because of this transition. With the growing ease of setting up an online store thanks to technology ecosystems, influencers and brands will be working together more and more. In order to grow brand awareness, create engagement, and generate conversions, creators introduce their brand and products authentically and discover the right creator, explore the social media accounts and feed into your industry that drives engagement. In addition to these options, brands can collaborate with a variety of influencers and micro-influencers to develop a multi-tiered influencer marketing strategy.
By 2027, social commerce sales are expected to be worth $605 billion.
Online stores that have social media buttons can benefit from social commerce. Your followers care about your commitment to diversity in leadership and the use of organic ingredients when it comes to growing your social commerce as consumer needs brands that support the causes that are important to them. Your brand will be more effective if you engage your consumers in content that helps them understand your offerings in a relatable way. A majority of users access social media platforms on mobile devices. Due to its user-friendly features, social commerce has become the shopping site of choice. Consumers’ behaviors can be captured through social media without interfering with their social lives. If you want to navigate the social commerce realm, keep in mind that followers want to be inspired and entertained by D2C brands.
Whether you’d like custom strategies based on accurate data or the development of eCommerce websites, we can help. Learn more about investing in digital commerce by contacting our team of experts.