It’s no secret: In 2023, a lot of people buy things online. And ecommerce brands that are looking to sell products to modern consumers need to understand the trends, habits and behaviors of online shoppers to meet these customers where they are.
The rise of social commerce has presented a unique set of opportunities – and challenges – for brands who sell products in the digital marketplace.
So what is social commerce anyway? It’s the use of digital spaces to sell, discuss and shop for products. This can take many different forms, including social media (like selling products on Instagram), digital advertising (like Google ads), and even user-generated content like forum threads and product reviews—so the term “social commerce” covers a broad range of online platforms and activities.
And just when many brands think they have a winning social commerce strategy figured out, a new platform emerges, or an algorithm changes, and they’re yet again forced to adapt their approach.
But despite the ever-changing landscape of social commerce, its relevance not only remains constant but increases every year. This means brands that can’t keep up or refuse to dedicate enough budget to social commerce will miss out on sales as their competitors cash in on a growing pool of eager buyers.
In this post, we’ll explain why ecommerce brands should consider investing resources in social commerce, and how they can use shoppable media and buyer journey insights to optimize the path to purchase on these channels.
3 reasons for brands to invest in social commerce
Most ecommerce brands are already focused on at least one social commerce space, but here’s why they may want to increase or expand their social commerce presence in the near future:
1. Social commerce sales are growing incredibly fast.
Each of the past few years has seen a tremendous increase in the total volume of social commerce sales. In fact, according to Insider Intelligence, social commerce sales in the US retail market for 2023 are expected to be about $56 billion, more than double the 2019 mark of $19.42 billion. And by 2025, that number is expected to make another massive jump to nearly $80 billion.
With such rapid growth over the past few years, it’s clear that social commerce is on an upward trend and not slowing down any time soon. And as one might imagine, the entry of younger, more tech-savvy consumers into the market is fueling a large part of this momentum—which brings us to the next reason for brands to invest in social commerce.
2. Younger shoppers are turning to social media for brand research and purchases.
Teenagers and 20-somethings who grew up in the age of the internet are more likely to use social media for all sorts of purposes, and shopping is no exception. According to McKinsey & Company, while their boomer, Gen X and millennial counterparts were more likely to use traditional sources, Gen Z-ers showed the highest preference for both social media and “experts, celebrities, and influencers” when performing brand or product research.
This probably comes as no surprise, as it’s common knowledge that younger people are more plugged into internet culture. But it’s an important reminder for brands: As these shoppers reach adulthood and garner higher incomes, it’s likely they’ll increase their spending and be equally, if not more, dependent on these channels to find content that will help them make informed purchasing decisions.
3. Social media companies are diversifying their ecommerce offerings.
Social media platforms have always been tightly interwoven with digital commerce, but recently they’ve been adding even more ways for users to engage with brands and make purchases directly from their apps.
For example, the live streaming platform Twitch now offers integrations that allow creators to sell merchandise to viewers while streaming, complete with integrated checkout that allows viewers to browse and buy products without having to leave the stream. And video sharing platform TikTok recently introduced a feature called TikTok Shop, which lets brands sell products via a dedicated tab on their profile—and enables customers to complete checkout without leaving the app.
With these and other ecommerce innovations, social media companies are sending a clear message to brands: We want you to sell on our platform. Find creative ways to reach our users, and you’ll be rewarded for it.
Reach your target audience on every channel with one solution
The best way to tap into the growing social commerce landscape? Creating a winning shoppable media strategy.
Shoppable media is a form of social commerce that provides a direct pathway to purchasing your products from any digital touchpoint, including social media platforms, your own website or on the world’s largest marketplaces. And the simpler that pathway is, the better.
Consumers are looking for convenience in their shopping experiences, and a whopping 97 percent of them say they’ve backed out of a purchase simply because it was inconvenient to them. You don’t want your brand to fall victim to lost sales due to a convoluted buying process.
PriceSpider’s shoppable solutions make it easy to create and launch fully-branded campaigns, enabling brands to create a flawless customer journey that turns browsers into buyers in just three clicks or less. Plus, it gives brands detailed insights that allow them to optimize every step of the buying process.
If you want to learn more about how to create shoppable content and implement campaigns, check out our free ebook, The Definitive Guide to Shoppable Media.
And if you’re ready to make your brand shoppable on every channel, talk to an expert today.