The role of social media in marketing has evolved alongside consumer behaviors over the years. The COVID-19 pandemic especially caused brands to reconfigure their sales and eCommerce models in order to sell their products more effectively online.
One strategy that marketing experts have leaned into is social commerce. Throughout the 2020-2023 span of the pandemic, social commerce expanded year-over-year by almost 31% each year, and is anticipated to reach $1.3 trillion in 2023[1].
In this article, we’ll look at social commerce strategies from the perspective of eCommerce experts in the UpCity community. We asked these experts about the following:
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The advantages of social commerce for SMBs
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Challenges SMBs are facing executing social commerce campaigns
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Additional advice and guidance to consider while building out your social commerce strategy
Here’s what we learned.
What is social commerce?
Social commerce is the practice of selling goods or services directly through a social media interface, such as Facebook or Instagram.
Your next question may be: why social media commerce?
Social media is a necessary element of any modern content marketing strategy. Brands can leverage the reach made possible by these social media platforms to boost brand awareness, visibility, and reputation. In fact, 50% of SMB eCommerce leaders use social commerce in an effort to boost sales.
Social commerce provides an efficient and effective model for driving users back to your website in order to make a purchase. By using a social media platform’s social commerce functionality, you can sell products and services directly to social media users without any need for them to click through to your website’s online store. This streamlined approach removes hurdles that could potentially result in a lost sale.
Facebook and Instagram are the leading social commerce platforms
With 71% of Facebook users and 72% of Instagram users worldwide making purchases from those platforms “sometimes” or more[2], the Meta-owned brands are the most popular social media sites for social commerce.
Visitors are able to visit Facebook shops and Instagram shops and make purchases directly from social posts on those platforms. Users can also do the same within their direct messages (DMs) by integrating with popular eCommerce tools like Shopify and Magento. Purchases can also be made through ads and posts on Instagram.
New to the game, TikTok is giving Meta a run for its money
Despite mixed coverage in the news due to recent privacy and security concerns, TikTok is still predicted to have more than 48 million Generation Z users by 2025[3]. The increasing spending power from this demographic is anticipated to drive TikTok’s social commerce sales sharply upward in the coming years.
Social commerce trades calls-to-action for “Shop Now” buttons
Rather than a traditional call-to-action, social commerce posts pair product or service descriptions with a button that might read, “Shop Now” or “Buy Now.” Clicking that button allows users to add an item to their eCommerce cart without ever having to leave the host platform.
What are the benefits of social commerce for SMBs?
Brands choosing to leverage social commerce enjoy a number of advantages over competing businesses that rely on more traditional eCommerce models. Let’s take a look at a few.
Social commerce reduces friction in the shopping experience
Think about all of the steps you have to go through to place an order on an eCommerce website, from searching on Google to sifting through reviews and product information to finally navigating the online storefront. After all that, you still have to place the item you want to buy into your virtual cart, click through the actual purchase process, and enter your customer, payment, and shipping information.
That’s a lot of opportunities for a potential customer to get frustrated or disinterested and abandon the purchase. This is where social commerce is changing the game for online retailers. Customers are increasingly engaging with their favorite brands on social media, and those brands are in turn creating more useful and engaging social media content.
Social commerce allows potential customers to make a purchase in a space where they already feel safe engaging with your brand.
“Being able to purchase directly through a social media channel minimizes all barriers to entry for customers. It takes less time, fewer clicks, and is already a place where you have built trust.” —Kaleb Dean, President, Chief Design Officer, Studio Ostendo, Co.[4]
Basically, there are fewer hurdles between the customer and the purchase confirmation when they initiate the purchase process through a social commerce posts.
“The biggest advantage of selling directly through social commerce is the ability to remove barriers for your customers. The less information your customer has to enter, the quicker they can check out and they are therefore less likely to leave without completing the transaction. Many social platforms also have a wealth of information about their users and will often streamline the checkout process with auto-fill details that are already in their accounts.” —Elliot Rushton, Freelance Marketer, EPR Marketing[5]
Social commerce increases brand visibility and exposure to target audiences
Social commerce can greatly simplify your inbound marketing funnel. A significant portion of your target demographic should already be interacting with your business on social media, so eliminating the chase and giving them a direct route to purchase and otherwise engage with your brand can do wonders for your overall visibility and reputation.
“Selling directly through social media offers businesses the opportunity to reach a wider audience, engage with customers, showcase products visually, leverage social proof, target specific demographics, and access valuable data metrics and analytics.” —Mandeep Kumar, Director – Marketing and Business Development, Arete Soft Labs Inc.[6]
Social commerce is adaptable and cost-efficient
Chances are that you’re already advertising and boosting posts across your social media channels, drawing in your target audience. As most social platforms are already integrated with the most popular eCommerce platforms, there should be minimal cost and effort needed to implement social commerce on your profiles.
This makes social commerce a fast and affordable method to test products and sales tactics with your target audience that you can later roll out on a larger scale.
“Selling directly through social media is a game-changer…It allows businesses to connect with a specific audience in real time, paving the way for immediate engagement and building stronger relationships. Social media platforms boost exposure, provide insights into customer habits and preferences, and are considerably more cost-efficient than traditional marketing routes. Plus, they’re adaptable—businesses can initiate on a small scale, experiment to identify effective methods, and easily optimize their strategy.” —Domenique Comparetto, Head of Content Strategy, Altered State Productions[7]
What are the biggest challenges with social commerce?
Like any business tactic, implementing social commerce doesn’t come without challenges. Social networks have a number of limitations that must be navigated before online sellers can provide a positive experience for their customers. Here are a few of those challenges, with strategies for overcoming them.
Data tracking can be difficult, but not impossible
If you’re not using Google Analytics for your site traffic tracking already, launching a social commerce campaign is a great reason to fold the powerful analytics tool into your marketing technology stack.
“A downside (of social commerce) is that it can be harder to track your customers’ journeys. Without Google Analytics, you might be left in the dark as to where they are running into problems or what interests people the most. There is a lot of give and take when selling on social media, and you have to figure out for your business specifically what’s most important to you.” —Madi Taylor, Content Marketing Coordinator, 97 Switch[8]
You can only partially control the customer experience
While it’s important to leverage social commerce in order to meet customers on their level, one drawback is that–beyond content marketing tactics–you can only have minimal impact on the customer experience.
While you can customize product descriptions, modify prices, and even update images quickly and easily, you cannot alter the purchasing process built into the social media platform the way you can on your own website.
“The biggest downside is that you do not have control of the user experience and in some cases have to make accommodations you wouldn’t have had to make on your own platform.” —Jack Shepler, CEO, Ayokay[9]
Similarly, while you can boost posts and pay for advertising on social media platforms, you cannot truly control how and when potential customers or even your own followers will see your social commerce posts. This is why it’s so important that social commerce isn’t the only sales channel in your marketing and sales strategy.
“When social media is your main (outlet) to sell products there can be a lack of control and customization for the business, having to depend on different platforms’ algorithms, and the security concerns (inherent) with social media. To mitigate these challenges, businesses (can) adopt a multi-channel approach, combining social media selling with a dedicated website or other eCommerce platforms. This way, they can leverage the benefits of social media while maintaining more control over the customer experience and data ownership.” —Robin Dimond, CEO and Founder, Fifth & Cor[10]
Privacy and security are out of your hands
The ability to protect client data and privacy is vital in the modern economy, with the average cyber-attack costing businesses upwards of $5 million[11]. Similar to third-party eCommerce platforms, there’s lots of trust and very little direct control involved when it comes to ensuring the security and safety of customer data gathered through social media platforms during a social commerce transaction.
“Social media platforms especially have faced scrutiny regarding privacy and data security. Businesses must handle customer data responsibly and ensure compliance with data protection regulations. Any data breaches or mishandling of customer information can damage a brand’s reputation and lead to legal consequences.” —Jim Murphy, Technologist, Real Wisconsin Website Design[12]
Tips for small businesses using social commerce
Beyond the benefits and challenges of implementing social commerce, our experts had these tips for small business owners.
Do the necessary prep work to understand your audience
As with any marketing initiative, it’s important to identify your target customers before going live with your social commerce postings.
“…start by identifying your target market and choosing the social media platforms that are most appropriate…Spend time and effort developing content that fits your brand and appeals to your audience. Finally, interact with your followers, answer their questions, and deliver top-notch customer service to gain trust and loyalty, which will ultimately boost sales and business development.” —Eddie Varghese, Social Media Project Manager, SmartSites[13]
Allocate staff to manage and maintain your social commerce presence
While social media automation tools can greatly increase the efficiency with which your team can manage your social media presence, tacking on a social commerce sales channel can add multiple time-consuming tasks to daily routines.
“My best advice for any business selling through social commerce is to use an agency or at least hire a professional on social media. If you don’t already have a large following, focus on growing that first in a real way with real people.” —Benjamin Gibson, Creative Director, Toronto Creatives[14]
Research your target audience’s online behavior to discover where to focus your efforts
While we’ve listed four primary social sites with social commerce integration, social commerce can be executed on a number of social media platforms. In the research you’ve done to identify your target audience, you should also uncover which platforms those customers are most active on in order to plan out your social commerce strategy.
“Do your research! Start small and test the entire journey from adding to (their) cart to confirming (a) purchase. Look at what competitors or industry leaders are doing and find inspiration in their social presence. Also, be sure to know where your buyers are spending their time—that is, don’t market your products on Instagram if your buyers are on Facebook.” —Whitney Derr, Digital Marketing Strategist, ForeFront Web[15]
Be active and engage with your audience on the platforms where you’re carrying out social commerce
Social commerce isn’t a passive set-and-forget sales channel. You have to actively engage with your audience and adjust your products and services posts based on customer behaviors.
“Small businesses that are considering social commerce need to establish a strong social media presence, engage with your audience authentically, leverage user-generated content, offer seamless and secure purchasing experiences, and continuously monitor and adapt strategies to capitalize on emerging trends and platforms.” —Nick Fernandez, Founder, Upsway Marketing[16]
Leveraging social commerce to your advantage
Content-focused social media management is already a complex and time-consuming undertaking, so you can just imagine the complexities introduced by adding social commerce into the equation.
It’s not a task that you should tackle in-house without the capacity or experience to execute this expansion on your eCommerce strategy successfully.
Even if you do have the staff, it’s still wise to meet with an eCommerce expert who can review your team’s efforts and provide the necessary guidance and insight to manage social commerce in-house as effectively as possible.
Looking to outsource instead? The UpCity marketplace has a wealth of social media experts who can handle the deployment and management of your company’s social commerce initiative so that you can focus on other aspects of running your business.
Sources
- Social Commerce Market Size (2020–2026), Oberlo
- How Often Do Social Media Shoppers Wordlwide Buy Products on Select Social Media Platforms, eMarketer
- Number of Generation Z users in the United States on selected social media platforms from 2020 to 2025, Statista
- Studio Ostendo home page, Studio Ostendo
- EPR Marketing home page, EPR Marketing
- Arete Software home page, Arete Software
- Altered State Productions home page, Altered State Productions
- 97 switch home page, 97 switch
- Ayokay home page, Ayokay
- Fifth and Cor home page, Fifth and Cor
- Cybersecurity in 2023: Average Cost of Data Breaches to Reach $5 Million, Edafio
- Real Wisconsin Website Design home page, Real Wisconsin Website Design
- SmartSites home page, SmartSites
- Toronto Creatives home page, Toronto Creatives
- ForeFront Web home page, ForeFront Web
- Upsway Marketing home page, Upsway Marketing