What Is Social Commerce?

Social commerce uses networking websites to promote and sell products and services. Social commerce involves the entire shopping experience over social media sites like Facebook, Instagram, and the X platform (formerly Twitter). This means products and services are marketed on these sites, which allow consumers to browse, shop, and make purchases. A social commerce campaign's success is measured by the degree to which consumers interact with the company's marketing through retweets, likes, and shares.

How Social Commerce Works

As noted above, social commerce involves selling products and services over social media. It encourages social shopping tools, such as forums and communities, where buyers and sellers discuss their online shopping experiences and compare notes. It is an evolving field of online marketing that works in conjunction with social media and online shopping growth. Fashion and shopping-related blogs use social commerce and media to entice shoppers to purchase linked items online.

Social commerce professionals create and post messages and interactive features that promote online sales and other e-commerce initiatives. Some of the marketing tactics social commerce employs include:

• Inviting users to vote on product style or choices
• Offering personalized buyer options
• Applying large and striking graphics to attract viewer clicks
• Using videos to show the product in use and from multiple angles
• Encouraging user-submitted photos, commentary, and feedback
• Using celebrity endorsements of the product line
• Linking directly to the checkout or shopping cart
• Offering promotions or giveaways to users who share the product on their feeds

Many popular fashion blogs have Instagram accounts that allow followers to like, share, and comment on the offered product. The tagged article frequently links directly to the store's shopping cart or check-out desk. Consumer interactions (likes, retweets, and shares) determine the success of a social commerce campaign—the more they receive, the more successful they tend to be.

History of Social Commerce

In the article "Social Commerce: A New Electronic Commerce," Yao Zhong said the concept of consumer marketing promotions online first appeared on the internet in November 2005 in Yahoo! The site promoted their Shoposphere pick lists, which highlighted the most popular products.

The notion of social commerce developed further to engage online shoppers by offering reliable advice and support from online experts regarding their purchases. Marketing blogger Jeff Bullas identifies the following four brands as being among the best in the business:

• Nordstrom, which pins a popular Pinterest label on store items that trend online
• Coca-Cola, which personalized its labels on bottles in stores and then invited social media users to post photos of their name-branded soda with the hashtag #ShareACoke
• Lolly Wolly Doodle, a fashion brand that allows followers to design and order their own clothes right on its Facebook page
• Starbucks, which awards bonus points to customers who unlock Mayor badges on Foursquare
  

Social Commerce vs. E-Commerce

Don't confuse social commerce with e-commerce or online shopping. Although there may be some similarities between the two, they are inherently different. As noted above, social commerce is a form of e-commerce that takes place on social media sites. As such, the experience takes place directly and entirely over social media.

Online shopping, on the other hand, is a way for people to shop through sites and apps that are devoted entirely to a shopping experience without the social media aspect. For instance, people can make purchases for products and services on dedicated e-commerce sites like Amazon and Alibaba. Or consumers can make purchases directly from the websites of retailers, such as Walmart and Target.

The Bottom Line

Social media allows you to connect, network, and share posts, photos, videos, and experiences. But now, they offer more than just a personal experience. Many social networking sites are now hubs for social commerce. This form of e-commerce allows you to connect with companies and marketers for a complete shopping experience. You can browse and complete purchases for goods and services with the click of a button—all without even leaving your favorite social media site.