Selling has witnessed a remarkable transformation with the advent of online shopping. In recent years, new models of eCommerce have changed the way consumers interact with brands and make purchases.
One of these is social commerce, a new shift in online retail that combines the power of social media with the convenience of shopping. This evolution in commerce is reshaping consumer habits and offering businesses fresh avenues to reach their audience. This article aims to establish what makes social commerce distinct from eCommerce and why it matters when starting a business.
What is eCommerce?
Ecommerce, or electronic commerce, refers to the buying and selling of goods or services using the internet. It encompasses a range of online business activities for products and services. eCommerce has revolutionized the way businesses operate, breaking down geographical barriers and enabling 24/7 transactions.
Ecommerce has made shopping convenient, fast and often cost-effective.
It allows businesses to reach a global audience with minimal physical presence.
Online stores can collect data to personalize the shopping experience.
Learn more: How to start an eCommerce business
It began in the 1960s with Electronic Data Interchange (EDI) replacing traditional mailing and faxing of documents. The 1990s then saw the rise of online marketplaces like eBay and Amazon when it further imploded. Recent advancements in payment gateways and mobile technology further propelled eCommerce and selling online.
What is social commerce?
Social commerce is a subset of eCommerce that involves selling products directly through social media platforms. It's not just about creating awareness it's about enabling the complete shopping experience—from product discovery to checkout—within the social media ecosystem.
Social commerce taps into the user base of platforms like Facebook, Instagram and Pinterest.
It leverages the social aspect of these platforms to encourage sharing and virality.
Influencer marketing plays a significant role in promoting products on social channels. At the same time, live streaming sales events are becoming increasingly popular, especially in markets like China. Within this realm, user-generated content, such as reviews and unboxing videos, boosts trust and engagement.
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The evolution of online shopping—from eCommerce to social commerce
The landscape of online shopping has undergone significant changes over the years. What started as a simple transactional process has evolved into an interactive and social experience. This evolution reflects the changing preferences and behaviors of consumers who are looking for more than just a product—they seek connection and convenience.
Consumers now expect immersive and personalized shopping experiences.
The rise of mobile devices has made shopping online more accessible and frequent - by 2023 almost 70% of the world were smartphone users.
Social media influence has shifted the focus from search engines to social platforms for product discovery.
Is social commerce the new eCommerce?
The growth of social commerce has sparked a debate on whether it could potentially overtake traditional eCommerce models. With social media platforms continuously expanding their shopping features, businesses are beginning to question where to focus their digital commerce efforts.
Social media platforms are increasingly being used as primary channels for product discovery and purchase.
The integration of shopping features into these platforms is blurring the lines between social networking and online retail.
The convenience of in-app purchases is appealing to a generation that values instant gratification.
Social commerce offers a more engaging and interactive shopping experience, which could lead to higher conversion rates.
Social commerce vs. eCommerce: the differences
Understanding the distinctions between social commerce and traditional eCommerce is crucial for businesses looking to sell online. Here are some of the fundamental differences that set these two models apart:
Platform
The user experience in online shopping is heavily influenced by the interface and features of the platform being used. Social commerce and traditional eCommerce platforms differ significantly in this regard.
Ecommerce typically involves a dedicated website or ecommerce platform for transactions. Ecommerce websites often have a more transactional layout, focusing on product listings, descriptions and reviews. They may include advanced search functionalities, customer accounts and comprehensive payment options.
Learn more: How to make an eCommerce website
Social commerce occurs directly within social media platforms, relying on their built-in features. Social media interfaces are designed for engagement, making them intuitive for social interactions and content sharing.
Features like shoppable posts, stories with product links and in-app checkout processes cater to a frictionless shopping experience.
Customer interaction
Traditional ecommerce interactions are often limited to customer service inquiries.
Social commerce fosters a community around brands, encouraging customers to engage, share and participate in brand storytelling.
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Sales processes
Ecommerce sales processes can be more complex, often requiring multiple steps and redirections to complete a purchase. Learn more about ecommerce management and all it entails.
Social commerce streamlines the purchasing process, allowing for fewer clicks and faster transactions directly within the social media app. Shoppable tags and links in posts reduce the steps a consumer must take to buy a product.
Social media algorithms help deliver personalized content and product recommendations based on user behavior. This means that shoppers are presented with products that align with their interests, increasing the likelihood of purchase.
Content and engagement
The role of content in social commerce cannot be overstated. It's the driving force that captures attention, builds relationships and ultimately, influences purchases. Influencers act as trusted sources of recommendations in social commerce. Collaborations with influencers can lead to authentic content that resonates with target audiences.
Social commerce thrives on visually appealing content that tells a story. Platforms like Instagram and Pinterest are highly visual and support a narrative around products.
Social commerce platforms enable user-generated content, such as reviews and testimonials, which can significantly influence buying decisions. Interactive features like polls, quizzes and contests engage users and foster a sense of community.
Learn more: eCommerce vs brick and mortar