By Jalluri, Last Updated:
January, 27, 2021
Social media offers an amalgam of experiences to its users.
There’s a lot of data that can be taken from daily usage and consumer experience. Based on what’s trending,consumer purchases are successful because of the system’s ease of use and speed of transaction. The tactics and strategies that have made it a success are based on these social commerce stats.
28% of these users are introduced to new products during this time or are browsing through items they would like to purchase. While 2 hours can be a lot of time to decide on what to buy, it also presents a shopper’s dilemma. In those 2 hours, the point of sale can be hard to grasp if you can’t be convincing enough to your potential buyers.
Opportunities in social commerce are plentiful but with a multitude of distractions like other competitors promotions or the short attention span of social media users, there is a need to create the perfect system to rake in a sale.
Based on this current Social Commerce Market Statistics, for a population of let’s say 100,000 people who are on the internet and social media, 50,000 people are buying or have an intention to buy something online.
Most people prefer to exercise their buying power without the hassles of driving, parking, and waiting in line. Many of those brick and mortar shops have either faded into obscurity or have integrated themselves to social media commerce via an online platform. Some of these shops would have sold out to more successful social commerce companies who wanted to “preserve” the nostalgia and use it as a selling point.
People who have made these purchases online and will gladly endorse the item on the given platform if it is to their expectations. This word of mouth endorsement is one strategy that emerging brands are aiming for as a way of expanding their market pool. Customers using social commerce benefit from the experience of a fellow social media user and base their decision to purchase from these recommendations.
Social Networks E-Commerce Statistics gives us an idea of what the most popular social commerce features are and social media consumers appreciate that Like button. It gives users quick and honest approval that doesn’t require too much information or takes too much of their time. Many businesses large or small take advantage of this feature on Facebook as a way to seek approval from social media users and plot out social commerce trends.
Facebook and Twitter share this level of usage by social media users making them the top most used social media features, as seen in social networks e-commerce statistics.
The difference between the Tweet and Like button though is the 280 characters that gravitate to expounding. It’s a social media feature that requires some time but it is highly attractive for people who want to share just a little about themselves.
Based on Social E-Commerce Statistics, an average of the item referrals is higher by 19% on Instagram compared to Twitter making brands opt to advertise and sell on the Facebook-owned visual-based platform. The thing about visual equity is that it allows the buyer to have an idea of what exactly they’re getting. You won’t buy a beautifully described table runner if you can’t even see how it looks like.
Social Commerce Use Statistics discovered that Gen Zero and the Millenials are highly influenced by social media fashion and trendy apparel that is featured via social media. Half of the time they purchase something is most likely because they have seen and appreciated it on social media.
However, also in 2018, these top social commerce companies decided to use Facebook and Instagram to promote their products and increase sales. Top companies like YouTube, Coca-Cola, Samsung, and even McDonald’s tapped into these platforms and have benefited from it since day one.
Shopify is the best place to start, in the US, if you want to get into online selling. Social Commerce Revenue Statistics reveals that Shopify is one of the largest e-commerce platforms. They currently have half a million active subscribers contributing to this number.
Customers using social commerce benefit from honest reviews that come from people who have bought and used the item in question. People, especially those from the older generations (yeah, Gen X, you’re part of that demographic) are used to the reassurance of being able to touch and feel what they are purchasing.
45% of these shoppers also mentioned needing to feel reassured about the item they are purchasing before actually hitting that buy button, a social commerce report points out. They still look for that reassurance that the typical brick-and-mortar store experience undoubtedly offers them.
Human beings are tactile creatures. There is an innate need to touch and to experience something through the different senses, one being the sense of touch. While many Gen Z and Millenials have a higher rate of purchasing online without actually seeing or feeling the products (i.e. clothes or items with fabric), the older generations still can’t seem to let go of that need.
Items that don’t go beyond US$100 – sell more. People who shop online via social media don’t purchase on a whim and go beyond their spending budget. Based on social media e-commerce statistics, brands and businesses choose to promote items that are not more than a hundred dollars. This makes the hook to purchase things easier and more attractive to online shoppers.
Based on most social commerce trends, Facebook has the most number of users even with the recent fallout with some users. In 2015, 52% of online and offline purchases were heavily influenced by the platform. That’s more than a three-fold increase from 2014 which only had 16% of sales. (Readycloud)
Even within a modern society where social media encourages publicizing, many people are still not comfortable when asked to provide some personal information (i.e. sign ups, asking for more than their email or contact number). Based on social commerce use statistics, asking for too much information that people don’t think is necessary, will most likely cause them to abandon the sale.
Based on the social commerce statistics of 2020, people’s attention span is too short to read through long and novela-like posts and descriptions. Keeping it short and sweet gets those skimming eyes quick and easy.
Social Commerce stats don’t lie and with this statistic you can see a demographic composed of those resistant to modern technology. Not everyone is tech savvy. And if these people attempt to purchase using a platform that isn’t easy or refined enough for newbies, then the possibility of a successful sale gets smaller.
Social Commerce Growth Statistics also have projected that by 2021 e-commerce sales will reach the US$4.5 trillion mark, that’s a three-fold increase from 2014 which had a US$1.3 trillion market sales.
Even with the difficulties that the Covid-19 pandemic has caused, global social commerce has remained on an elevated path. The US Social Commerce market is estimated to be at US$26.9 Billion by the end of 2020.
CAGR or Compound Annual Growth Rate for these developed countries will be significant from 2020 to 2027. Even China will have a projected market size of US$103.3 Billion by the year 2027. Successful Social Commerce companies will bring in the added revenue and increase the market sales to each of the countries.
Mobile money will contribute greatly to the efficiency of social commerce. It will not only allow for a quicker transaction but will also make tracking easier. Social commerce trends will also be easier to gather with an online database.
Social Commerce is an emerging commerce system that started out slow but has been propelled farther due to current circumstances. Although it has not yet perfected its process or techniques, more and more e-tailers, marketers and top social commerce companies have been working in overdrive to get it to a level worthy of a global marketing scale.
Introduced by Yahoo! back in 2005, Social Commerce has developed into an important avenue to increase sales revenue and market value. However, social commerce is slightly different from what many may believe. While social shopping focuses on the joint efforts of online shoppers who make collaborated purchases, social commerce instead focuses on different sellers or vendors working together to increase their sales.
In Social Commerce, the experience is linear with advertising, selecting, and purchasing done within the platform without the need to transfer to a third party site. Customers using social commerce benefit from the ease and all-in-one experience that keeps them glued to that buying intent thereby ensuring their purchase.
Although both terms have social and commerce on them, there’s a crucial difference in how they work and function as commerce tools. While social media e-commerce is essential to drive buyers into third-party websites or online stores, social commerce acts as a stand-alone shopping experience which makes it convenient and highly diversified. Customers using social commerce benefit from the ease and all-in-one experience that keeps them glued to that buying intent ensuring their purchase.
Social Commerce has shown much promise and is expected to get bigger and more profitable in the future. Based on an in-depth report done by eMarketer, although growth is modest with a 9.1% increase in the first quarter of 2019, it has grown a whopping 110% within two years. The social commerce statistics in 2019 show a steady increase in the share of total referral traffic to e-commerce sites.
Comparing it to the first quarter in 2016, there is a significant threefold increase and this upward trend shows no signs of slowing down. Meanwhile, the social commerce statistics of 2020 continue to increase and different social media platforms are vying for the top position of the best social commerce site. Sellers at the same time are developing the best strategies for surviving in the social commerce rat race.
Currently, with the obstacles contributed by COVID-19 to most traditional commerce, social commerce may be the most viable option for safe and hassle-free shopping. Just this March 2020, there had been a record 74% increase in online transactions compared to the same period last year. Considering a modest prediction of a vaccine coming out within a year, this trend will continue to increase even after people have the option to shop physically.
So, with that idea in-line, with the help of social commerce statistics, we can expect social commerce to yet be the future of e-commerce.