What Is Social Commerce / Video Commerce?

what is social commerce

In the gamut of Direct-to-Consumer marketing, the trend of social commerce is catching up fast. The rampant use of social media platforms enables sellers to enter their customers' daily lives. Read on to know more about the relevance of social commerce in 2022! Social commerce or Video Commerce means building or growing business through videos of social media by utilizing the power of influencers or celebrities. Marketers leverage it to drive leads and sales for retail, e-commerce stores etc. GryNow being the top influencer marketing company in India, are active in social commerce and has good experience in creating short videos like share chat, trell, tik tok, YouTube, Instagram etc., we help small as well as big brands, in positing their product through social commerce.

As per forecasts, the social commerce market will touch $604.5 billion globally by 2027. The same reports states that due to Covid-19, the extensive use of social media for e-commerce sales touched $89.4 billion in 2020.

Social commerce gets a thrust with social media apps like Instagram, Pinterest, Facebook, Moj, YouTube, Sim Sim, TikTok etc coming out with newer strategies to revolutionize the entire concept. There are indicators on ads, for example, live streams by influencers and more such game-changing strategies that make it all the more interesting. Not just small-time brands and e-sellers, but even big brands have now taken cognizance of social media commerce. One such move was by Walmart that released a statement in December 2020 that it will use TikTok creators to live-stream its products from where users can buy the products directly, as a part of its video commerce strategy.

Most customers refer to product views when researching and selecting products for purchase. Ever since social media was born, it has become a strong platform, growing as a social proofing platform. People tend to accept as true what they read, see and hear on Facebook, Twitter, Instagram, TikTok, and other social media channels. Social proofing is based on the belief that human beings love to go after things that others do. Thus, when consumers research a product, they need to buy, they prefer to access all kinds of information about the product from friends and family, posts on social media by users, and influencers endorsing the brand. For marketers, this tool has, thus, become an important part of the sales tunnel like video commerce, where they either choose to drive engagement or divert as per the plan. This forms social media marketing; however, now consumers are not just using social media for research and reference but to carry out transactions as well – directly ordering for products and services through few clicks, direct from social media platforms, while reading, scrolling, or even catching up with friends, family, and influencers online. Thus, with social commerce, the complete or at least most of the shopping experience happens on one platform, i.e., social media. The potential buyer discovers the product on the platform, researches it by reading reviews, posts, and influencer recommendations, and finally checks out or orders – all right from that one social media platform.

Social commerce in India has a similar story to tell as the global market. As per the latest reports from Wazir Advisors, 65% of social commerce in India is being driven by social media channels like FB, Instagram, WhatsApp, Chingari, and Trell. The other 35% is being fulfilled by e-commerce channels like Shop101, Meesho, Deal Share, and GlowRoad. Social commerce India is currently valued at $ 800 million. Specifically, video commerce in India is all set to touch $4 to $5 billion by 2025. (www.business-standard.com). It is where customers online can buy products and services while live streaming on social media platforms. Thus v-commerce is an integral subset of social commerce business.

Why is Social Commerce important?

The entire aspect of social media contributing to sales is gaining momentum because of Social commerce's importance. Here are some of the reasons to consider social commerce for your brand:

  • Real Interaction

    Makes your marketing efforts social as it offers an interactive experience to the customer rather than a standard e-commerce experience.
  • Easy Process

    Social media commerce effectually helps make the entire online buying process simpler and frictionless. Potential buyers see, click and order. That's it! The sales funnel is shorter, and the journey from discovery to purchase is completed in a few easy-flowing steps.
  • Reach to target customers

    Statistics about social shopping do not lie. E-commerce sales are all set to go beyond $735 billion by 2025.83% of online customers discover products on Instagram, while 81% research and 80% of customers decide to buy a product or service. That is the kind of potential buyers your brand can target with social media shopping.
  • Better feedback

    Brands no longer look at simply selling online today. They look at interactions with customers, getting feedback about their products and services, and so on. With social commerce business, reviews and discussions are almost instant and worthwhile.
  • Customers are active

    Social commerce is best if your target market consists of Millennials and Gen Z because people between 18 to 35 years are most active on social media.

What is social commerce business' relevance in 2022

Social shopping has proved to be much more than a digital marketing buzzword. Just like video e commerce, shopping via social media is driving traffic and profits for brands. It is not just limited to the bigger known brands, but businesses of all sizes and scales can benefit by leveraging social media for selling online. With 2022 around the corner, online sellers need to find ways and means to make their e-commerce business strong and viable. Social commerce is an essential extension of e-commerce and can do wonders when realistically linked with your brand's online storefront and other existing sales channels, including in-store presence. The relevance of this digital marketing strategy becomes obvious, with customers preferring easier buying and checkout processes. Also, most online brands are aware that the longer the sales funnel, the lesser the chance of the customer making a purchase. The need-of-the-hour is not to lengthen the shopping process but to optimize the consumer buying journey and make it as instant as possible. If you do not want to lose out on a customer online, ensure that you embrace social commerce in 2022. Even as Covid-19 seems to loom large in the backdrop in the coming year, this is the time for small and big online sellers to maximize the potential of social media and make it a channel for closing sales and conversions.

Social commerce shopping is a phenomenon that delivers, not just promises to do so. It's time to include it in your marketing strategy for holistic growth and fill the coffers!