Why Social Commerce Matters for Your Brand: Definition and Overview


3/4/20233 min read

Social commerce is a dynamic approach to selling products and services that utilize social media platforms as a direct selling channel. This technique involves the use of social media to promote, advertise & facilitate the sale of goods & services to customers. With the advent of social media platforms such as Facebook, Instagram, Twitter & Pinterest, social commerce has become an increasingly popular trend.

Unlike traditional e-commerce models that rely on online stores or third-party marketplaces like Amazon or eBay, social commerce provides businesses with an innovative way to reach and engage customers by integrating social media platforms into their sales strategy. Through this strategy, businesses can harness the vast reach and engagement potential of social media platforms to attract and convert customers.

How Social Commerce Works?

Social commerce can take several forms, including social media marketplaces, social media storefronts, buy buttons and social media ads. Let's take a closer look at each of these types of social commerce.

Social Media Marketplaces
  • Social media marketplaces are online marketplaces hosted by social media platforms where your businesses can sell products directly to consumers. Examples of social media marketplaces include Facebook Marketplace & Instagram Shopping. These marketplaces provide businesses with a way to reach a large audience of potential customers who are already using these platforms.

  • To set up a storefront on a social media marketplace, businesses typically need to create a business account on the platform, provide product information and set up a payment processing system. Once the storefront is set up, businesses can list their products & services for sale and customers can browse and purchase them directly through the platform.

Social Media Storefronts
  • Social media storefronts are online stores hosted on social media platforms where businesses can showcase their products & make them available for purchase directly through the platform. Instagram Shop is an example of a social media storefront.

  • To set up a storefront on a social media platform, businesses need to create a business account on the platform, create a catalogue of products, and integrate a payment processing system. Customers can browse the products in the catalogue and make purchases directly through the platform.

Buy Buttons
  • Buy buttons are buttons embedded in social media posts or ads that allow users to make purchases without leaving the social media platform. When a user clicks on a buy button, they are taken to a checkout page where they can enter their payment information & complete the purchase.

  • Buy buttons can be used in a variety of social media contexts, such as in posts or ads promoting specific products or services. They provide a quick & easy way for customers to purchase products without having to navigate away from their social media feeds.

Social Media Ads
  • Social media ads are targeted ads that appear in users' social media feeds & lead directly to a product or service page. Businesses can use social media advertising to target specific groups of people with their products & services. This type of advertising can be highly effective because it allows businesses to reach people who are already interested in their products or services.

  • To create a social media ad, businesses need to set up a social media advertising account on the platform they want to advertise on, create an ad campaign and set a budget. They can then target specific groups of people with their ads based on factors like age, location, interests, and behaviour.

Benefits of Social Commerce
  • Increased reach: Social media platforms provide businesses with access to a vast audience of potential customers, allowing them to expand their reach beyond their existing customer base.

  • Personalized shopping experience: Social commerce allows businesses to offer a more personalized & engaging shopping experience for customers, helping to build stronger relationships with customers & improve customer satisfaction.

  • Improved customer engagement: Social commerce enables businesses to engage with customers on a more personal level, providing an opportunity to build trust with customers & improve customer satisfaction.

  • Targeted advertising: Social media advertising can be highly targeted & cost-effective, allowing businesses to reach specific groups of people with their products and services.

  • Seamless shopping experience: Social commerce platforms allow customers to browse & purchase products without leaving the social media platform, providing a seamless shopping experience for customers.

  • Increased sales: By leveraging social media platforms, businesses can potentially increase their sales and revenue, reaching more potential customers & generating more sales.

  • Improved brand awareness: Social commerce can help businesses improve their brand awareness and recognition, promoting their products and services on social media to increase visibility and exposure.

The rise of social commerce is a game-changer for businesses, providing a host of advantages for those who utilize social media platforms to promote and sell their products & services. By merging the forces of social media marketing with e-commerce, businesses can provide a tailored & immersive shopping experience for customers, fostering deeper connections and boosting sales. As social media continues to expand its reach, social commerce is poised to become a crucial element of any business's marketing and sales strategy, regardless of its size.