Social Commerce: How Social Media is Transforming Online Shopping

Social commerce is the rising powerhouse of the digital marketing industry. It’s already revolutionised our relationship to buying products and services online.

But how is it shaping the marketing landscape, and what can you do, as a digital marketer, to capitalise?

Social commerce blends e-commerce and social media where users can browse, engage, and buy directly within social platforms. The entire journey from first engagement to purchase takes place on social media.

It streamlines the shopping journey, reducing friction between discovery and purchase. Now, let’s explore how you can upgrade your next marketing campaign using social commerce:

• The rise of social commerce: why it matters
• How social commerce works: the user journey
• Key trends shaping Social Commerce in 2024
• Challenges and how to solve them
• Enhancing your Social Commerce
• What the future holds for Social Commerce

The rise of social commerce: why it matters

Social media has seen a significant evolution over the last few years. It’s gone from being a networking tool or a place to catch up with friends and family, into a powerful marketplace where brands can connect directly with consumers. We’ve seen transformation across TikTok, Instagram, Pinterest, Facebook and other platforms, all geared towards making posts more interactive. It’s clear that these platforms are gearing up to become the most useful online shop fronts for the companies that know how to use them the most effectively.

Social commerce provides opportunities for businesses of all sizes to increase visibility and drive sales in an environment where users already spend much of their time. Think about this; users are often enjoying a break when browsing social media. It’s a restful moment in their day when they’re not working or having to consider the day’s To Do List. This is an ideal opportunity to engage with them when they are more casually browsing.

Ultimately, social commerce has seen a rise in effectiveness in the last few years due to one thing: convenience. Buyers no longer need to navigate away from their social app to make a purchase. They can stay put, keeping their focus in one place, (and minimising  barriers to conversions at the same time.)

How Social Commerce Works: The User Journey

Every new customer that engages with your brand over social media goes through the same journey and experience of your brand. It’s a little different to your usual funnel involving search or SEO. Let’s get to know it a little better:

Inspiration:

Users are exposed to products through curated feeds, influencer partnerships, and sponsored posts. This sounds quite clinical, but to a user, they’re just seeing a feed full of things that they are already engaged and interested in!

Engagement:

Shoppers can interact with content, read reviews, and ask questions within the platform. This is where you start to sort more casual browsers from active fans of what your company creates. The more engaged users will start to click and interact with your content in a totally natural way.

Purchase:

Integrated shopping carts and direct checkout features allow for a seamless transition from browsing to buying. It’s literally one tap away from looking at a product in a photo or video post, to seeing the price and product details in a social commerce shop front. Pretty useful, don’t you think?

Post-purchase:

Social platforms encourage sharing, reviews, and further engagement, creating a continuous cycle of social proof and product promotion. Customers who have seen your posts will want to keep coming back for more, checking in on the latest products or offers, and will want to keep engaging with products that are the most relevant to their preferences. It’s a happy cycle!

Key Trends Shaping Social Commerce in 2024

As social commerce becomes ever more sophisticated and nuanced, you’ll notice that it is one of the fastest-evolving elements of digital marketing today. Here are just a few key areas to keep an eye on. They’re set to be the most impactful in the coming couple of years.

Influencer Marketing

• You can expect to see an ever-prevalent rise in influencer marketing. Influencers act as both entertainers and brand advocates, making product discovery feel more organic. Think of it this way: would you rather buy from a company, or from your favourite comedian who loves a particular product?

• Their authentic content blurs the lines between entertainment and shopping, providing a sense of trust and relatability. This is why you need a thorough understanding of what influencers are available for your brand, everyone is totally unique in their style of content.

• Micro and nano influencers (smaller audiences) are becoming more popular due to their high engagement and niche expertise. You don’t need to partner with influences with millions of followers to drive engagement, there’s more to influencer marketing than Mr Beast and the Kardashians!

Live Shopping

• Live streams combined with real-time shopping opportunities are gaining traction, allowing viewers to purchase products as they watch. It's sort of similar to telemarketing channels from the 90’s, except this time it’s even more interactive!

• Platforms like TikTok and Instagram have invested heavily in live shopping integrations. So these are great, visually driven platforms to experiment with.

Shoppable Videos

• These are really useful; short, engaging videos with embedded shopping links make it easy for users to buy instantly.

• TikTok and other short-form video platforms have become increasingly popular. So now is the perfect time to embrace bite-sized content with easy purchasing options. There’s no need to over complicate things, just go where the most engagement is taking place already!

AI and Personalisation

• AI-driven algorithms curate personalised shopping experiences, showing users products they are more likely to buy based on past behaviour. This is only going to increase as the years go by, so you need to future-proof your marketing with AI in mind.

• We all know that tailored content and product recommendations keep users engaged and lead to higher conversion rates. But more importantly, is the rise of hyper-specific products and preferences. The future is niche, so lean into campaigns that focus on ultra personalised ads.

Challenges and how to solve them

The rise of social commerce, like any marketing development, comes with its own set of challenges. Here are a few, and some ways to help mitigate any negative impact.

Maintaining Authenticity
The over-commercialisation of social media can lead to a loss of trust. Users are very wary of being advertised to, and tend to prefer content that is genuine and “real”. 

When creating any social commerce campaigns, look for a balance between product promotion and valuable, engaging content to avoid alienating followers. Remember, users aren’t primarily on social media to shop. They’re looking to unwind and have a good time. So lead with engagement and connection at the forefront of your messaging.

Partner with influencers who align with your specific brand values and have genuine relationships with their audience. That way, you’ll not be misrepresented, and will have a fast-track connection to your followers and new audiences alike.

Platform Dependence
Relying solely on one platform can expose brands to risk, particularly if algorithms change or the platform loses popularity. We’re all at the mercy of the algorithm, so don’t put all your budget into one platform.

Diversifying across multiple social channels ensures continued visibility and reduces reliance on any single platform. Given that most users are on multiple platforms already, this seems like an obvious tactic to utilise. 

Managing Customer Expectations
If you’re investing in social commerce, known for its speed and efficiency, then fast, convenient shopping might raise expectations for fast customer service across your brand as a whole.

Invest in logistics and post-purchase care to meet the demand for swift, seamless experiences. That way, you’re covering all bases and aren’t vulnerable to poor customer service catching your marketing efforts off guard.

Enhancing your social commerce

Once your social commerce campaigns are up and running, you’ll want to level up your marketing to stay competitive. Here are a few ways to do that.

Data-Driven Decisions
Make the most of platform analytics to monitor customer interactions, preferences, and buying patterns. As with SEO and PPC, the best way to analyse your campaigns is through relevant and accurate data tracking.

Use any insights that you uncover to tailor your future marketing strategies, personalise content, and improve customer experiences. Small changes can have a big impact, providing they are informed by your data and analysis.

Seamless User Experience
Ensure that the shopping journey from discovery to purchase is as smooth as possible. If you’re providing a top-class social commerce experience, users will expect that same level of service from start to finish, so be the one company to make good on that expectation.

Integrate intuitive checkout systems, multiple payment options, and clear calls to action to keep users engaged. There’s no need to make this part of the process complicated for users, they’ll appreciate simplicity and clarity throughout.

Omnichannel Strategies
Maintain consistent branding across social media, websites, and physical stores to enhance customer trust and recognition. Creating a strong brand identity is an expensive part of marketing, so take that expense and use it across all of your marketing.

Your social platforms can help to create unified shopping experiences that bridge the gap between online and offline interactions, so your customers always feel connected to your brand in a way that is authentic and easy.

What the future holds for social commerce

So where do we go from here? Social commerce is one of the most revolutionary and experimental elements of digital marketing, so here are a few things to keep a close eye on.

More Social Media Shopping Features
Social media channels will gradually become an accepted space for purchasing a product or service, with users expecting to buy directly from their social media feed.
Platforms are expected to add new tools and integrations to further streamline social commerce.

Some platforms will be a step ahead, allowing enhanced AR tools for virtual try-ons and product demonstrations. This is a huge opportunity to create totally unique experiences with your customer base.

Expanded Role of AI and Automation AI-driven personalisation will continue to evolve, with more advanced algorithms tailoring shopping experiences to individual users. That hyper-personalisation that we mentioned earlier? You’ll see it at its most efficient with any new AI developments.

Automation in customer service (e.g., chatbots) will enable businesses to handle higher volumes of queries quickly and efficiently, providing they are effectively trained and monitored.

Continued Growth of Influencer-Driven Sales
We predict that influencers will remain a core driver of social commerce, with even more brands relying on these partnerships to reach new audiences.

Expect to see a rise in hybrid content formats, blending entertainment, education, and shopping.

In summary

Social commerce has gone from an interesting novelty to an accepted and powerful element of digital marketing, offering a unique blend of convenience, engagement, and personalisation.

As platforms continue to develop new features and integrations, this trend will only strengthen. Now is the time to dive into the world of social commerce, and reap the rewards.