What is Social E-Commerce? Social E-Commerce is a term that refers to users making purchases on social networking platforms. In this article, let’s join Weakhand to find out what Social E-Commerce is and its applications in the large Web3 market.
Before jumping into the article, everyone can refer to some of the following articles to understand better
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- Why is it confirmed that SocialFi will follow in GameFi’s footsteps?
What is Social E-Commerce?
Social E-Commerce, also known as social commerce, is a term created by combining “social network” and “e-commerce” to represent the process of using social networks as a platform to sell goods and services. This doesn’t just mean shifting to an online sales marketplace, but also allowing users to complete purchases right on their own social media platforms.
Although the methods and strategies implemented by social media platforms may vary, they all serve a common purpose of facilitating selling through social media. In fact, all major social networking platforms at the present time such as: Facebook, Instagram, Pinterest,… have implemented Social E-Commerce on their platforms in one way or another.
Visitors to a brand’s Facebook profile can view available products including sizes, color variations, and specifications. Potential customers can ask the brand questions directly through Facebook Messenger. Once they’re ready to make a purchase, they can use Facebook Checkout without leaving the platform, or brands can redirect them to an online store.
According to estimates, the value of the entire Social E-Commerce industry will reach about 2.9 trillion USD by 2026:
Estimated value of the entire Social E-Commerce industry over the years
This represents the explosion of Social E-Commerce in the coming years because of the increasing use of social networks by users. Research shows that the average user spends about 15% of their waking time on social media platforms with 10% of US adults addicted to at least one social media platform. The increasing number of people using social networking platforms will make shopping on it explode in the near future.
Benefits That Social E-Commerce Brings
With Social E-Commerce, this is definitely a big piece of cake for retail brands in reaching a large and potential user base. Here are the main benefits of Social E-Commerce:
Reach a larger range of users
According to statistics, there are about 4.59 billion users, equivalent to 57% of the global population, currently using social networks and this number is expected to reach about 5.17 billion by 2024. There are more opportunities than ever. It’s time for retail brands to reach global audiences through social media.
In addition, more and more social network users are starting to shop through social platforms, especially those in the 18 to 34 age group who account for the majority of shopping activities on the Internet. social network.
Bring a comfortable shopping experience
With functions like in-app payments and instant messaging tools that make social shopping more convenient. Using Social E-Commerce also helps eliminate unnecessary steps in the purchasing process that cause customers to lose interest and abandon the purchase.
By allowing users to stay in the app from product discovery until payment, the risk of shoppers leaving is lower.
For example: Instead of redirecting Facebook users from the app to a purchasing website, the platform has a “pay on Facebook” option. Instead of interrupting their time on the platform, shoppers can browse products and purchase them without leaving the social network.
Collect customer data
Social media platforms are a great source of customer data to inform future marketing campaigns and product developments. Using Facebook’s audience insights, marketers can gather even more in-depth data about their target audience such as user interests,…
By using this data source, retail brands can build advertising campaigns about their products targeting potential customers. This will make selling easier and more likely to be successful.
Rely on social proof
Normally, most online shoppers will check and evaluate products before purchasing. Users will need to trust brands before hitting buy so they will look at previous customer reviews, compare products and even talk to other customers before making a decision. .
Social E-Commerce comes with built-in social proof in the form of user-generated content. Comments, likes, shares, and follows all help potential shoppers trust your brand. As customers continue to engage and promote your brand, other social media users are more likely to trust your brand as well.
Brands can encourage users to share content with giveaways, discount codes, or coupons. Branded hashtags that encourage users to share images or videos of themselves using products are another way to build social proof.
The Curology brand regularly shares feedback from customers using its products
Influencer marketing also helps build trust and create social proof. When famous influencers recommend a brand’s products, it increases the brand’s credibility.
For example, 89% of YouTube viewers trust recommendations provided by YouTube creators. Using YouTube Shopping, brands can pin products next to their videos so viewers can like, subscribe, and purchase.
Receive feedback from the audience
Social media makes it easy for brands to directly interact with their audiences and get their feedback about their brand and products. Customers like to share their opinions because it makes them feel valued. Brands can run polls, ask customers for their opinions in comments sections, and chat through messaging tools.
Using this feedback, retail brands can tailor their offerings to meet customer expectations. Whether it’s better customer service, more product size options, or more product variety, when retail brands have these insights, they can find solutions to overcome them. .
How Can Web3 Impact Social E-Commerce?
Social E – Commerce in Web3 can bring positive impacts and open up new trends for the online retail industry. Next, let’s explore the impacts that Web3 can bring to Social E-Commerce:
Global accessibility and payments
Normally Social E-Commerce on Web2 social networking platforms such as: Facebook, Instagram, Tiktok,… usually only limits buying and selling activities around one country and users cannot buy goods abroad. However, with Social E-Commerce in Web3, this is quite simple with the support of decentralized platform Blockchains.
This makes it possible for users to buy and sell different items worldwide and make instant payment transactions. However, at the present time, I see a drawback in that the transaction fee is quite high and if a user spends 5 USD to buy item A and has to pay an additional 1 USD in fee, it is unreasonable. A very positive point is that the issue of reducing transaction fees is also one of the top goals that the Blockchain platforms are aiming for and offering many solutions to implement.
Unlock unique new features and products
Web3 provides new ways to monetize and diversify their services through the introduction of digital products and services. With Web3 brands can:
- Sell virtual products in the Metaverse: Some brands have created limited and seasonal accessories and apparel to wear in the Metaverse.
- Launch exclusive NFTs to increase sales and traffic
- Monetize social or digital content for brand advocates who may not want or have the money to buy physical products.
- Reach a new user base of Crypto enthusiasts and investors.
Provides greater reliability and transparency
Trust is a key factor in e-commerce, and Web3 technology promotes trust by providing transparent and verifiable records of transactions. The decentralized nature of blockchain allows users to trace a product’s origin and history, ensuring authenticity and preventing counterfeiting. This transparency builds consumer trust, leading to increased trust and loyalty for online brands.
summary
Social E-Commerce in Web3 indeed brings special features that Web2 does not have. However, at present, Social E-Commerce in Web3 is still relatively unfamiliar to users, so we need more time for this segment to develop and attract more users. Above is all the information I want to introduce about Social E-Commerce, hope everyone has received useful knowledge.
