Social commerce is a term that's been getting a lot of attention, particularly from businesses who make a large number of their sales online. While it sounds fairly straightforward, the idea of social commerce is more sophisticated than many people give it credit for. Social commerce can make a big difference to a business's overall reputation and sales, and it’s something you need to be taking into account as your business grows.
So what is social commerce? Well, the easy definition is that it's a subset of electronic commerce. An e-commerce accessory, if you will. Social commerce is when social interaction, and user-generated content, is used to help facilitate product sales.
That sounds a bit technical, but it isn't. If someone rates your product as 5 stars on Amazon, and then someone else buys it based on that rating, that's social commerce in action. If someone reviews your product, good or bad, then that is social commerce. Customers are using social media in order to leave their opinions, and those opinions can affect how future customers view a product, which in turn directly impacts your sales.
The number of customers converting to purchase through Facebook, Instagram, Pinterest and more is climbing every day. A company Facebook page can act in a similar way as a website homepage. If your social accounts aren’t set up to navigate traffic in this way, you need to do some reevaluating.
Use Social Commerce To Your Advantage
It's in a business's best interests to take advantage of social commerce. Encouraging customers to post about their experiences, leave ratings on major sites, and to spread the word is essentially free advertising for a business and its products. If you have something that a lot of people love, then a stack of positive ratings will also make that item much more likely to show up in other searches. It becomes a self-perpetuating cycle, which can be hugely beneficial for both sales and visibility.