Specifically, China’s WeChat platform will stand as the model US companies and other brands will look to when constructing a social commerce strategy. By allowing merchants to house virtual storefronts on the platform, WeChat functions as a one-stop shop for ecommerce.
While consumers may go online to search for a product that they need, social commerce could fill a void when people go online without knowledge of what they’re looking for or even intent to buy. Through social media platforms, brands and companies are looking to help consumers with product discovery.
Social media companies have comparative strengths that determine its approach to social commerce. Here are some of the top social media platforms that are helping brands leverage social commerce:
Facebook’s massive scale is what drives it to the top of the list brands look to when deciding where to market. 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 2020, Facebook launched Facebook Shops to help SMBs bring their storefronts online. FB
In 2020, Facebook launched Facebook Shops—a mobile platform where businesses can create online stores for free—to help small- and medium-sized businesses (SMBs) bring their storefronts online amid the pandemic. And if the effort is successful, Facebook Shops could work its way upstream to larger brands.
Instagram Instagram redesign. Instagram
The influencer culture associated with Facebook-owned Instagram makes it a top player in the social commerce space. According to Linqia’s “The State of Influencer Marketing 2020” report, Instagram ranked as the top social media platform among US marketers at 97%.
In 2019 Instagram launched Instagram Checkout— streamlining the way brands allow purchases directly on the platform. In 2020 Instagram took their shoppable content a step further by placing the shop tab icon at the bottom of the homepage. This enables Instagram users to click on the icon and instantly see and purchase products advertised by brands, influencers, or celebrities they follow.
Some of the most popular categories searched on Pinterest have to do with interior design, fashion, and health & fitness—making its contextual relevance for shopping and brand awareness an ideal platform for social commerce.
While Pinterest drives significantly less engagement than Facebook, it still registers as a key purchase channel because it’s entire premise is centered around creating inspiration for what to buy.
Even though TikTok is new to the social commerce industry, its heritage as a Chinese company already gives it a leg up on platform competitors as it has the benefit of understanding what’s worked and what hasn’t in other markets.
TikTok’s algorithmic prowess and engaged, tech-savvy user base have potential to unleash rapid growth as it achieves product-market fit. And its recent tie-up with Walmart gives it a formidable ecommerce partner to fuel and fulfill consumer demand.
TikTok sponsorship videos are paving the way to a new social commerce strategy. TikTok Twitter
Probably the least popular social platform when it comes to social commerce is Twitter—especially after dropping its buy button feature in 2017. But the platform does offer marketers and brands the ability to engage in social listening, which can later assist in their social commerce strategy.
By gaining insight to exactly what their audience is talking about, being honest about what they like and what they don’t like, brands can analyze that information and develop a social media strategy based off of the data collected.
Social commerce market stats & outlook
Insider Intelligence forecasts that US retail social commerce sales will rise by 34.8% to $36.09 billion in 2021, representing 4.3% of all retail ecommerce sales. And while fashion categories including apparel and accessories remain the largest for social commerce, other lifestyle brands looking to market electronics and home decor are also key players. And brands featuring new and differentiated products are best suited for the social commerce environment.
Want to learn more?
Insider Intelligence’s Social Commerce 2021 Report includes updated US social commerce forecasts, analysis of the latest social commerce capabilities, and marketing strategies for brands.
Interested in getting the full report? Here’s how you can gain access: Join other Insider Intelligence clients who receive this report, along with thousands of other Media, Advertising, and Marketing forecasts, briefings, charts, and research reports to their inboxes. >> Become a Client Purchase the individual report from our store. >> Buy The Report Here
Read Full Article