What is social commerce?
Social commerce involves using social media networks to encourage or make e-commerce transactions.
Users post online content that supports social interaction and assists online buying and selling. With more time spent on social media than ever before, the majority of retailers and brands are looking at how to turn their online activity into sales.
Social commerce tools: LiketoKnow.it, Wearisma and Depop
Liketoknow.it and Wearisma are online shopping tools that allow users to shop from their favourite Instagrammers.
After signing up to one or both of these services via their websites, the user is encouraged to like a photo on Instagram with a unique Liketoknow.it or Wearisma link. You will then receive an email with full information on the products featured in the Instagram post, with a link to buy each item.
Depop is an app that can be described as an eBay/Instagram hybrid, allowing users to shop directly from their favourite blogger, brand or friends profile.
Users can sell their products just by uploading a photo, as well as see what people in their network share, buy and like. The interface is very similar to Instagram, allowing the user to search for a profile, like images, and comment underneath the post or private message should they want to negotiate for the item.
Social commerce trends
The biggest trend is that a brands message does not have to come from the brand itself. There is now a new rise of influencer marketing whereby regular consumers who are active on social media can create awareness/sales for brands by validating their products or services.
Influencer marketing creates an alternative to digital advertising, such as Facebook or Instagram promoted posts. Brands can connect with customers in a more authentic way when the message isn’t coming directly from the brand.
Influencer marketing
Zoella is one of the UK’s most popular bloggers, with 7.2 million followers on Instagram alone. Due to the attention Zoella commands from her global fanbase, many UK brands have increased their online sales through having their products mentioned by her.
In this example, Zoella is using the description box to promote a link to her blog, where you can find information on where to purchase the items in the picture.
You Tube
Rather than using their own channels, which can come across as corporate and unimaginative, brands are now using influencer marketing to engage online customers. This includes collaborating with bloggers to promote products in a creative way. Popular UK Blogger Lily Melrose partnered with Topshop to share items from their A/W range on her channel.
In exchange for gift vouchers, Lily purchased a selection of items, shared why she bought them and included trackable links to each product in the description bar below the video.
Smaller retailers can engage with bloggers too. The HoneyBella Tea Company is a UK online tea Boutique, selling everything from teapots and hampers to tea themed toys. HoneyBella collaborated with blogger ‘Lady Writes Blog’ on a mother’s day gift guide article which was also promoted via Twitter.
Benefits of working with social media influencers include:
- leverage their creativity
- access their audience
- connect with consumers in an engaging, authentic way
The future is now
Buying through social media options now include:
- buy button on Twitter
- buy button on Facebook
- buy it pins on Pinterest
- call to action button on Instagram – Sign up/Download now/Install now/Learn more/Shop now
- purchases on Google (buy direct from mobile ads)
These make the customer journey much quicker and easier as they don’t have to leave the platform.
Your customers are already documenting their brand experience with you, whether its posting an ‘outfit of the day’ on Instagram, Snapchatting their shopping trip or unboxing new shoes on Facebook.
Tips on how to get started
- identify the social media networks your customers use (how about conducting a survey via email?)
- overlay this with sales data (e.g. what social media networks do your most profitable customers use?)
- create social media experiences that are shoppable
- see how your audience is engaging and enable it further
- try Social Listening: Search keywords/hashtags – be part of that daily conversation. A recently launched teenage skincare brand began just by simply searching the keyword ‘acne’ on Twitter and found thousands of potential customers
- change the way that you interact on social media
- find the bloggers that you want to engage with and reach out. You can do this by contacting the blogger (directly or via their agency) or signing up to an influencer marketplace such as Famebit.com
- before engaging with a blogger, consider whether they will resonate with your customers. If you’re not sure, ask them!
- consider what you can offer them. If you want to attract the most influential bloggers provide something unique that stands out, for e.g. do not just send a product or a press release and hope for the best. Engage bloggers in a unique way and you are more likely to be featured.
- get your customers blogging – they are naturally your biggest advocates. Encourage them to produce a blog or video content, speaking about your brand.
- consider making a blogger your brand ambassador – if they have already mentioned your products it makes sense to work with them and establish a relationship just as you would with a celebrity endorsement. Some bloggers are represented by agencies, some prefer to be contacted directly, so consider the best way to engage and create a package that benefits you both.
- become a brand blogger – how about producing a blog or video content yourself? Is there someone at your organisation who writes well/is engaging on camera and knows how to speak fluently about your products?
Comparing channels
Introduced buyable pins allowing retailers to add a blue ‘buy it now’ button to pins, payment taken through Apple Pay or Credit Card. Only available to the US. 93% of users research products through Pinterest and a further 87% have completed a purchase inside of Pinterest.
Added direct-response functionality in early 2015, allowing businesses to add a call to action such as buy it now, download now, etc. Studies show engagement on Instagram is 58x higher than Facebook. Sponsored posts are targetted and relevant to users (a strategy imported from parent company, Facebook).
YouTube
Since May 2015 YouTube has rolled out ads in TrueView pre-roll videos (showcases products/services relating to the video being watched). Product review videos have increased by 50% since 2014 and revenue per impression has tripled compared to 2014.
Twitter ads have not been as successful. However they recently launched buy buttons along with product collection options and hold the largest income and age demographic for social media (most diverse, 18 to 34 year olds). To note that buy buttons are only available to US retailers who use specific e-commerce engines, like Demandware and Shopify.
The leader in social commerce integration. Introduced social selling in 2010. Facebook have generated over £6 billion in mobile ads alone in the last year. They have also launched dedicated shopping feeds and immersive ads. Facebook is also still the most popular app, accounts for 50% of all social referrals and 64% of total social revenue. Has the most powerful targeting of any social network.
Accelerating your global growth via online channels
Clever use of social media/social commerce can be key in helping you to establish a presence overseas and gain new international customers.
Today, 97% of UK designers are on Instagram, 87% on Facebook and 86% on Twitter, reaching millions across the world. In markets like China, social media has a huge influence on buying decisions, so can be a good channel when looking at overseas opportunities.
Between 2014 and 2015, social media increased its share or total e-commerce referrals by almost 200%.
China: snapshot of online retail
China has 302 million online shoppers and they are by far the world’s most active online purchasers.
Econsultancy, 2015
1 in 7 Chinese consumers turns to the internet for a purchase every day and more than 60% shop weekly. This is three times higher than the global average, according to PwC. By 2020, McKinsey expect China’s online retail market to be as large as today’s markets in US, Japan, the UK, Germany and France combined.
Why Chinese online consumers buy British:
- UK is known for quality, innovation and heritage
- sound product quality
- lower price (compared to domestic websites and offline stores)
- brand preference
A small market share in China can still represent as many, if not more, than Australia’s entire online shopper base
Azoya, 2014
China: an overview of social commerce
Nearly all foreign social media platforms are inaccessible (Facebook, Twitter, Whatsapp, etc.). WeChat has the features of Facebook, Whatsapp, Instagram and more – an ideal marketing platform.
Social media imposes a greater influence over Chinese shoppers buying decisions. Baidu is China’s largest search engine. Baidu prefers Chinese websites and local resources. Baidu also offers site reviews for users – very important to gain a positive review in the search results.
Chinese websites offer a more vivid, extensive product description page. Rather than just basic information, Chinese websites display promotional words about why you should buy a particular product in a convincing narrative.
China: popular social media platforms
Here are some of the most popular social networks in China:
- Tecent
- Sina Weibo
- Tencent Weibo
- Qzone
- Tencents
- Pengyou
- Renren
- Kaixin
- Youku Tudou
Why social commerce?
Social media drives e-commerce referrals more than any other channel and:
- is fast becoming the biggest driver of sales for online retailers
- has a huge impact on purchasing decisions and encourages instant buying
- enables you to get in front of global consumers without cultural or language barriers
- allows you to connect directly with existing and potential customers
- provides very targeted marketing so that your message is relevant, engaging and welcomed
Links to further info and contacts
Find out how UKTI helps UK retailers and brands to accelerate their global growth via online channels at gov.uk/e-exporting.
View live export opportunities, including in e-commerce, at www.exportingisgreat.gov.uk.
Book a meeting with one of our International Trade Advisors to discuss your online export plans at www.uktiofficefinder.ukti.gov.uk.
This article was originally published at Gov.uk
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