How is Social Commerce Revolutionizing the Retail Industry in 2023?

Social Commerce has become a dynamic way to make purchases according to your choices. Imagine that you are tired of your current phone and want to replace it with a new one. You go to a retail or commerce website to search for the best phones within your price range. After you’re done browsing, you may find that same advertisement or related advertisements on other websites you browse or social media channels you use.

This is the powerful effect of social commerce in today’s world – you can’t escape the subtle capitalism tactics. Brands are able to connect with their audiences by tracking the use of various social media channels on which their audience is the most active.

From Instagram Live streams to online shopping events on TikTok, social commerce has become extremely integrated in our everyday lives and seeing an advertisement on them has become the most normal thing ever. With emerging immersive technologies and incorporation of augmented reality (AR), customers now engage and purchase at a higher rate than ever before.

Let’s take a look at how closely we are attached to social commerce in 2023 and how it’s helping brands connect with their target groups by strategically placing call-to-actions.

What is Social Commerce & Why is it Important in 2023?

Social commerce is a method of increasing sales by using digital platforms or networking websites like social media channels. Being a subset of e-commerce, it helps brands connect with their target audiences in a quicker and more effective way. With the popularity of social media channels for boosting sales funnels, here are the advantages of using social commerce:

Enhances Customer Experience: The expansion of conversational chatbots in driving explosive growth for social commerce due to its immense potential of enhancing customer experience. Furthermore, the growing popularity of using micro influencers or microbloggers is also helping in redefining the customer experience while shopping on social media.

Boost Revenue Streams: Various social media platforms including Instagram have been known to boost brand value and drive more sales. How? According to Facebook, shopping on social media channels has become so essential for browsing options with nearly 81% of shoppers using Instagram or Facebook to research about products they wish to purchase.

Reach Targeted Audiences: From reaching targeted audiences to reaching certain demographic groups, the digital portals of social media have allowed brands to send advertisements according to the requirement. For instance, started a new dog food brand and looking to sell your product? Guess what! Social media channels give you the opportunity to connect with users who either own a dog (data gathered by Google analytics) or who have searched about good dog food brands online.

Independence of Improvisation: The best part about social commerce is its expanding scope of experimentation and innovation. For instance, the brand “Dove” has been known for its focus on social causes using social media channels. From breaking stereotypes to women empowerment, the brand always comes up with new and innovative ways to advertise their products and improve their branding.

Which Social Media Channels are Promising Explosive Growth Opportunities?

Brands are increasingly using social media channels in a number of interesting ways including lead generation, brand recognition, and market research. With the ability to gain real-time insights about your target groups and put your products out in the social world, the buying and selling experience has become seamless.

According to the latest statistics on social media, Oberlo has estimated that there are nearly 4.89 billion social media users in 2023! This means that more than half of the world’s population is using social media as you read this sentence. Let’s find out about the three most popular social media channels that you can use for social commerce:

Facebook: One of the most popular and oldest social media channels which continues to stay relevant today is Facebook. This channel has created multiple ways in which brands can connect with their target audiences with the best way being customizable Facebook Shops that brands can use as catalogs. This is an effective way to convert leads into conversations and drive sales.

YouTube: Being one of the most impactful ways for affiliate marketing, YouTube Even though the brand is primarily for music streaming, it has lately delved deeper into the plethora of social commerce in recent times. For instance, in partnership with Shopify, creators are now able to directly link their products or sponsored products as a new shopping feature.

Instagram: With a phenomenal user base of approximately 1 billion active users, Instagram attracts almost 70% of shoppers which is promising social commerce platforms in recent years. The popular social media platform has captured an enormous market share by engaging large audiences with Instagram Shopping. Brands can easily upload product catalogs and allow customers to choose which products they wish to purchase.

Is Social Commerce the New One-Stop-Shop?

With rapid digitalization and the penetration of social media channels across various audiences, social commerce has emerged as an effective way to reach large numbers at once. By bridging the gap between the brand and the customer, people can browse through products or services of brands they wish to engage with. As the penetration of social media continues to skyrocket, social commerce is seeping in to boost revenue streams of brands.

If you are focusing on just one social media platform and leaving the others run dry, you are contributing to limiting the growth of your brand. Every social media platform caters to a different type of audience and if you are offering a wide range of products or services, it’s essential to keep a judicious mix of all popular social media platforms to maximize reach.