E-commerce is moving towards social commerce – How to get it right?

Social commerce is often described as the intersection between social media and e-commerce. While this holds value, there is a lot of traffic with no direction. There’s no doubt that social selling is a powerful and an increasingly influential sales tool.

According to recent BI Intelligence, the top 500 retailers earned an estimated $6.5 billion from social shopping in 2017, up 24% from 2016.

There are various forms that social commerce adorns, from group buying to social shopping; from mobile apps to retailers adding social features, or shopping integrated into social media. All of these forms have one thing in common – the use of social technology to replicate age-old buying models in the digital sphere.
Whether it is girls going shopping together in a store or asking a friend for advice on power tools, moving them to online would result in them having a social commerce experience. Taking another instance of bartering, here, instead of the traditional method of trading goods or services, shoppers are trading personal data such as buying habits and preferences for access to easy shopping portals.
There are social platforms like Pinterest, Snapchat and Instagram which have incorporated a “Buy now” button that can turn a static image into a product with a click. However, since the story came about how social platforms are using and monetizing user data, there was a certain amount of wariness among the users about sharing their data on these networks.
The key here is to find a model of social commerce that would work the world over. Some of the things to keep in mind –

  • Provide the shoppers the ability to earn credit for sharing their own data and of their social network.
  • Enable retailers to own the relationship with their customers while also providing access to insights and goodwill from happy customers. 
  • Provide every individual the ability to turn into an influencer. 
  • Star Using the existing social media networks as a channel to interact with the brand itself.

person using laptop that is showing a webpage of images

How to make it work

Say a user wants to purchase a mobile phone. The ideal route would be to go the website of the retailer of their choice (assuming if the retailer provides a social commerce experience). They can then choose the selection of the models of their favorite mobile phones.
They now post a picture of the phones on their social networks and ask friends to vote on which phone they think the user should buy.
By setting up this vote, the user can then earn shop credits. Their friends who voted for the products can also earn shop credits by that action. In this scenario, there is no prerequisite of having a large social media presence to be valuable for the business. This action inadvertently turns the user into a micro-influencer.
The information gathered during the voting helps the retailer sell more effectively. They learn which of the products is most appealing and have the potential to become hot sellers, and then accordingly manage stock or change how they display their products. They also gain access to an expanded audience. This eventually, helps them to build a relationship with their customers which can help them build brand loyalty.


Social channels have a major role to play. Besides influencing purchase decisions, social media is a larger part of the product discovery and research phase in the shopping journey.
The next few years will see social commerce expand its influence if it efficiently benefits the consumers and businesses. The world of commerce is on the verge of disruption, thanks to technological innovations, data collection, and social media. If social commerce is achieved correctly, the future of retailers and shoppers will widen.

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