Social Media: A New Way to Shop Online
E-commerce has changed the way people shop, giving retailers and businesses new avenues to interact and engage their customers. Millennials are currently the most valuable target demographic for modern retailers. As they are also the most avid users of social media, a crossover was all but inevitable.
Retailers, realizing the power of social media, have used these platforms for a while now to engage with their customers online. Social media also lets retailers market their products in a more interactive environment.
Recently, social media platforms like Instagram and Facebook have been investing in retail. This captures wide consumer interest and boosts both revenues as well as followers. As for retailers, they can use social media platforms to better understand consumer behavior and trends.
UGC or user-generated content is one of the most valuable data sources for retailers. Millennials put a lot of trust and faith in peer evaluation of products. Studies show that reviews and recommendations by fellow shoppers, rather than brand messaging, motivate customers to buy products online.
Here are a few instances of how social media platforms are leveraging the retail space:
Facebook Shop and Marketplace
Facebook has a feature called Facebook Shop. Retailers can add the Shop tab to their business page. It lets retailers display their products and sell directly from their company page itself. Considering the huge number of users on Facebook, this offers retailers a wide audience to convert into customers. Retailers can upload a product catalog to their page and customers can browse the products and buy them without having to leave the page. It also allows retailers to manage orders, and mark them as shipped or canceled right on the page itself.
Facebook also introduced Facebook Marketplace, an online market for retailers to display products. This offers free organic distribution for retailers’ products. It curates content and provides product recommendations based on user preferences and relevance. This ensures higher conversion from a user to a consumer. Like Facebook Shop, there is no listing fee involved. It is an online platform for retailers to sell to their customers.
#Instashopping on Instagram
Instagram is one of the most popular social media platforms with more than 1 billion active users; and about 60% or a whopping 600 million people, seek out and discover products on the app. Instagram has introduced shoppable posts which allow customers to go from discovery to buying without having to leave the app. Retailers can add up to 5 product tags per picture on business accounts only. They can only tag products from their Facebook Shop catalog. These tags redirect the customers to a product page that allows them to buy the products.
This seamless and hassle-free shopping experience has a wide appeal for the customers. In June 2018, they added Shoppable Stories which are an added advantage as about 400 million users view Stories every month. As of late 2018, Instagram also added a shopping channel to the Explore page, which is in its testing phase.
Shop and Cop by Snapchat
Snapchat has introduced ads and product catalogs through its self-service ad buying platform. Recently, they released a dedicated shopping channel called Shop and Cop on the app which will feature exclusive offers and limited time deals through Shopify. These channels will be available in the Discovery section of the Snapchat app. Shop and Cop will feature social influencer posts and content. Shopify capabilities will allow in-app purchases ensuring a smooth shopping experience without the user leaving the app. Snapchat will curate products while Shopify will take care of the buying end. Moreover, Snapchat and Amazon have announced a partnership on a visual search tool. This will allow customers to use the Snapchat camera to search for products on Amazon.
2018 saw a lot of innovations with social media intersecting with e-commerce to give the rise of social commerce. Retailers stand to make big bucks off of these popular platforms by better understanding shopper purchase behavior and using it to their advantage. They can conduct market research, market their products better and even sell, all in one place. With these innovations, it's only a matter of time before social media takes over the world of retail.