The social commerce revolution: changing the way we shop forever

Martin Bysh at Huboo explains the significance of the rise of social commerce to the future of retail, and describes how businesses can navigate this rapidly evolving landscape

 

As online shopping continues to dominate the retail landscape, the line between social media and eCommerce has blurred, merging community, communication and shopping in a seamless interactive experience. 

 

Social commerce is changing the retail game, reshaping how consumers, technology platforms and brands approach online shopping, with innovations like shoppable videos and one-click subscriptions for niche products.

 

So, what does the rise of social commerce mean for the future of retail, and how can businesses navigate this rapidly evolving landscape?

 

Social commerce’s unprecedented growth

According to Deloitte Global, in 2023, worldwide social commerce sales will surpass $1 trillion, driven by over two billion people shopping on social platforms. But what’s behind this explosive growth? Is it solely the buying power of gen Z, or are there other factors at play?

 

Social network users aged 18 to 24 are, of course, primary players. This tech-savvy demographic represents a significant portion of social media users, who love interacting with brands and making purchases directly through platforms like Instagram, Facebook and TikTok.

 

A second driving force is investment in technology. This has enabled social platforms to develop innovative buying features, creating a seamless shopping experience for users and making it possible for products to find consumers, rather than the other way around.

 

For example, TikTok Shop lets brands and influencers showcase and sell products for the TikTok community to discover and purchase directly via live shopping experiences, shoppable videos and in-app product showcases.

 

Thirdly, leading retailers are developing smarter strategies to convert social media users into paying customers, tapping into their existing online communities and engaging directly with their audiences to achieve sales.

 

The democratisation of retail

Social commerce offers a markedly different approach to the faceless brands of old. It allows emerging brands and influencers to bypass traditional retail channels – both on and offline – and sell directly to consumers, building closer connections with their customers in the process.

 

Small businesses and niche brands are capitalising on this democratising effect to reach a wider audience and compete with larger, more established players in the market, through highly specific, targeted offers.

 

Consumers are also empowered by gaining more control over their buying, as they discover new products based on their interests and enjoy a uniquely personalised shopping experience.

 

Collaborations are helping many brands capitalise on the social commerce movement. The fashion and beauty sectors have found incredible success on visual platforms like Instagram and TikTok, working with influencers to showcase their products in creative and engaging ways.

 

These collaborations not only generate buzz and increase brand visibility but also drive sales by tapping into the trust and authenticity of popular content creators. 

 

Overcoming challenges

Despite its promising growth, social commerce comes with its own challenges and obstacles that retailers must address to be successful.

• Fulfilment integration is essential to ensure that customers receive their orders on time and as expected. New brands and influencers launching social commerce propositions often make the mistake of trying to fulfil items themselves, only to get overwhelmed by the level of demand experienced. They need quick and easy access to affordable third-party fulfilment, which is why leading social platforms such as TikTok and Instagram are starting to integrate fulfilment providers directly into their social commerce tools – providing a one-stop-shop for anyone looking to sell via their platform.
•  Stock levels can be harder to manage and track when selling via social platforms. Not all platforms provide customers with clear visibility into what’s available and what’s not, and some have been known to struggle to process  stock level updates. One solution to this is to use a fulfilment partner capable of managing multiple sales channels and automatically updating stock levels in real-time across all of them, so that customers always know which items are genuinely in stock before they place their order.
•  Data privacy is a key factor, as consumers often share personal information when engaging with social commerce platforms. Brands and influencers must prioritise data protection to maintain consumer trust and comply with regulations.
•  Professionalism is also crucial for retaining customers, maximising conversion rates and obtaining positive reviews. Retailers must provide a smooth, reliable and consistent user experience that is comparable to, if not better than, traditional eCommerce channels. By exceeding expectations and gaining trust, brands can help make social commerce credible to a wider audience, enhancing their own reputation as they do so. 

Trends and opportunities as social commerce takes off

Social commerce is evolving fast, with new sales trends and engagement tactics rapidly emerging. For example, live shopping allows businesses to host events where they can showcase their products in real-time. Consumers can interact with their favourite influencers and brands, discover new products and ask questions. The format delivers instant feedback, enabling agile retailers to continuously improve the customer experience.

 

The rise of the creator economy is another significant trend. Influencers and content creators are monetising their online presence through brand collaborations, merchandising and other social commerce opportunities to impact consumer behaviour and shopping preferences like never before.

 

Where once they would create a short piece of content publicising their love of a product or affinity towards a brand, now they’re able to sell these products directly to their audiences on the brand’s behalf. 

 

In the near future, we can expect to see intense competition between social commerce platforms and established eCommerce giants like Amazon. It’s likely the establishment will look to incorporate social elements into their own platforms or develop better social commerce integrations and plugins to stay competitive. To thrive and compete in this environment, brands will need to focus on innovation, personalisation, user experience and strategic partnerships.

 

A bright future for online shopping 

Social commerce is clearly revolutionising the way consumers shop and interact with brands. Success will come to those forward-looking retailers, emerging brands and savvy influencers who are able to capitalise on the buying power of gen Z, harness technological innovation and embrace the potential of the creator economy.

 

However, it’s crucial that brands also face up to the challenges that come with this revolution, particularly in fulfilment, compliance and customer service. Social commerce makes it easier than ever to reach and engage customers directly, but without the right partnerships and integrations, the back-end operational side of eCommerce remains as complex as ever to execute. 

 

As social commerce grows and develops, brands need to keep themselves informed as to customers’ ever-shifting preferences, adapt to changing circumstances, understand the wider market landscape and be willing to embrace innovation as new technologies and social sales channels emerge.

 

The rise of social commerce signposts a bright future for online shopping, but it’s a future in which only the most agile and responsive brands will thrive. 

 

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Martin Bysh is CEO and Co-founder of Huboo

 

Main image courtesy of iStockPhoto.com