May 18, 2021
Social commerce has become a huge part of the global retail framework. Thanks to the ongoing digitalization of modern life, consumers from virtually every country make a profit from the perks of online transactions. The number of digital buyers continues climbing every year. 23.7% of Internet users claim they discover new brands and products through recommendations or comments on Social Media.
The term social commerce has been in the public eye for quite some time. Relatively speaking, these are sales through influencers, micro-influencers, big key opinion leaders. But the most important is that the sale happens among influencers’ audiences.
It is an ability to make a product purchase from a third-party company within the native social media experience. For example, you can browse and compare products on Facebook or Instagram, and then make purchases there instead of going to the company’s site to buy.
Top Social Commerce Platforms in 2020 (and probably it will remain like that for a while):
Today the world population is 7.81 billion people, and worldwide social media users are 4.14 billion. Another interesting number is this one -- 60% of people say they discover new products on Instagram.
The pandemic of COVID has influenced all the spheres, fields, and parts of our lives. So no wonder it came in handy for social commerce. It has accelerated the flow of shoppers from offline retail to online for five years. Traffic in offline retail is falling rapidly, while global online sites have experienced an unprecedented increase of it.
In the first quarter of 2020, sales of classic offline retailers decreased by 25%. In the second quarter, the decline was up to 75%. Walmart Online Sales Grow 97% In Q2 2020, Target Increases Delivery Sales By 273%.
Here are a few of many reasons for you to think about adding social commerce to your repertoire if you have been doubting its benefits:
J. Clement, research lead with a focus on the internet and gaming, in her article on Statista says:
Retail platforms have undergone an unprecedented global traffic increase between January 2019 and June 2020, surpassing even holiday season traffic peaks. Overall, retail websites generated almost 22 billion visits in June 2020, up from 16.07 billion global visits in January 2020. This is of course due to the global coronavirus pandemic , which has forced millions of people to stay at home to stop the spread of the virus. Due to many shelter-at-home orders and a desire to avoid crowded stores in places where it is possible to shop, consumers have turned to the internet to procure everyday items such as groceries or toilet paper.
The most social commerce-using audience lives in China. Last year live commerce and live streaming shopping in there was estimated at about $ 140 billion. By the way, live forms of selling stuff are on the top of popularity, and it will continue to be at this level, because the pandemic is still here, and even if it is gone, people seem to get more and more comfortable with buying online.