Social Commerce: What it is & How to Use it Effectively

Kelly Shelton

January 13, 2022

Instagram, Facebook, TikTok, Twitter—they’re not only a way we connect to the world and pass the time, they’re also part of an invaluable ecosystem that every brand in the world should be paying attention to right now: social commerce.

What is social commerce?

Social commerce is the use of social media platforms to buy and sell products or services. Think about platforms like Instagram or Facebook Shops that allow you to purchase products from a brand right in-feed—that is social commerce. A wider social commerce definition, for our purposes, is that social commerce is the use of social media to introduce products to consumers, increase brand awareness, improve customer experience, and market a brand.

When did social commerce start and why is it taking off now?

Social media has been a growing channel for brands for about a decade, but social commerce as we currently understand it began about three years ago. It has grown in popularity in part due to global changes in the way people shop.

At the onset of the Covid-19 pandemic, in-person shopping opportunities were severely limited as consumers felt unsafe to purchase products in stores. This, combined with increased traffic on social media apps, made social channels ripe for ecommerce development, and many brands took advantage of that.

In 2020, Instagram, Facebook, and Pinterest all launched updates to their social commerce tools that streamlined the purchasing process during the pandemic, making it easier than ever for consumers to research, engage with, and purchase products from brands.

How is social ecommerce different from other ecommerce or marketplaces?

When people go to marketplaces like Amazon or Walmart, they’re specifically looking to purchase products. When they go to apps like Instagram, Facebook, or TikTok, they’re not primarily there to shop. In fact, they’re not usually there to shop at all. They’re scrolling to connect with friends and family, to see what’s happening in the world, to browse and to be entertained.

While that means that conversion rates are typically much lower on social media platforms than on marketplaces, the opportunities to provide engaging customer experiences and raise brand awareness are higher. Social commerce is the new ecommerce content marketing.

Another notable difference between social commerce and other marketplaces is in how targeting works. A marketplace or website is limited in showing you what keywords and products customers are most interested in based on the searches they’re making. By design, social media platforms give brands far more personalized information about their customers, like what age range is most interested in a product, the kinds of products and activities they like, and the things they don’t like.

Why does social commerce matter for your brand?

Internet users are no longer turning to their computers first to access online content. Currently, over 50% of all Internet traffic comes from mobile devices, and the easiest applications to access on mobile devices are social media apps.

As of 2021, there are 4.48 billion people using social media worldwide, and 93.3% of those social media users are currently active on a social media platform. In addition to connecting with friends and browsing for fun, social media users are spending their time seeing and engaging with brands on these platforms, and in many cases, making purchases based on the products showing up in their feed.

Therefore, social media has become one of the most consistent places for brands to connect with a large swath of their consumer base and reach new shoppers, too.

The benefits social commerce

Virality: The viral nature of social media means there are plentiful opportunities to grow a brand. Today, a brand can get a product into the hands of the right influencer on apps like TikTok and Instagram and watch sales for that product skyrocket as consumers see, engage with, and share that influencer’s post. The more engagement a brand gets on social media—likes, reshares, comments, follows, etc.—the more exposure they can receive from new customers, essentially creating digital foot traffic to their business.

Social proof: Another benefit of social commerce is that you can provide your customers with more social proof that your product does what you say it does. Social commerce builds on the importance of reviews because it gives users another avenue to share their experiences with a product, either by posting about their experiences or leaving comments in your feed. A good 76% of people say they trust online reviews as much as recommendations from family and friends, and social media is a great place to share/incorporate those reviews to build trust in your brand.

Loyalty: Social commerce allows you to build a following, and once you have a core following of loyal fans, you can activate them as brand ambassadors, offer rewards, host giveaways, and get them involved in other activation experiences that can extend your brand reach even further.

Audience targeting: The targeting we mentioned earlier? That’s another one of the biggest pros about social commerce. Because data collected by social apps is so specific, a brand can know absolutely that they’re putting their ads in front of the right audience. It allows brands to exponentially grow by going to their customers rather than waiting for customers to come to them, and it isn’t very expensive. Brands can get very targeted with their paid ads and find success on a small scale. Plus the information available about audiences can help you create marketing specifically for the buyer.

Truthfully, there are very few downsides to improving your social commerce strategy. The biggest is that it can take a lot of work to create a solid and efficient strategy.

Tips on how to use social commerce to your advantage

Here are a few things we’d recommend at Pattern.

Use a mixture of paid ad and organic strategies

As you craft a solid strategy for social commerce, you’ll want to consider both a paid ad strategy that gets your product in front of the right audience and an organic strategy across different social channels.

Paid ads or sponsored posts can be a powerful way to promote and build your brand in social spaces. Meanwhile, a strong organic strategy can engage potential customers with interesting and relatable content that makes them want to follow your brand, and it doesn’t have to be spendy—you might send products to consumers to unbox and share, for example, or add a humorous flair to your copy that keeps people interested.

Work with an influencer

A single influencer can change your business. By working with engaging social media influencers in your vertical—whether that be home goods, beauty products, appliances, or any other type of product—you can introduce potentially thousands of new customers to your brand and brand story. It doesn’t have to be expensive, either—brands are finding more success with micro influencers than with macro influencers.

You can learn more about how to use influencers in your social commerce through our Influencer Marketing Report.

Incorporate reviews and how tos

Similar to an Amazon listing, a social channel can be a great space to introduce your consumers to how a product works and what they can expect if they make a purchase. Sharing customer reviews and experiences on social media is one great way to do that.

Get to know your followers

Social media followers are your best source for feedback to improve your customer experience, and there are so many things you can do to build and maintain a relationship with them on social. In addition to sharing their experiences with your brand, engage with them in comments and provide them with a memorable customer service experience so they know you care about them.

Be authentic and focus on quality

Likes and follows aren’t the end all be all to a successful social strategy. You also want your brand to be authentic and provide quality content that customers find value in. Be a little funny, find creative ways to tell your brand story (video is one space where brands are seeing significant opportunities for growth), and publish worthwhile content your followers will find value in and want to share. The key is to be who you are and don’t over-promote.

The future of social commerce

Social commerce isn’t going away soon, but it does face certain challenges. While the use of social media to market content has grown exponentially, direct payment through social apps has been slower to stick. Customers still prefer purchasing through D2C websites or Amazon, but options like Facebook Pay are gaining momentum.

One big obstacle facing social commerce are regulations that impact social platforms’ tracking capabilities. The iOS 14 update on Apple alone, which allows users to opt out of having their data tracked, has had a significant negative impact on ad targeting and thus performance across Facebook and Instagram. In the future, we anticipate more and more companies will have privacy policies that limit the targeting, tracking, and retargeting functionality that’s delivered such outstanding results for businesses in the past. Social apps and brands may have to adapt and reinvent how they collect information to get similar results.

That said, the future looks exciting. With Facebook—and parent company Meta’s—emphasis on virtual reality, we could see VR incorporated into the buying experience 3-5 years from now, revolutionizing social commerce even further.

How Pattern can help you with your social commerce

Pattern makes a great partner for brands looking to either build their social presence from the ground up or just excel on the social channels they’re already on. Our team can help you grow your following, enhance your customer experience, build dynamic creative content and ads that engage your fans, connect you with influencers, and much more. To learn more, contact us today.

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Sept 27, 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)
Sept 22, 2022

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Sept 20, 2022

4 Ecommerce Marketplace Consultant Must-Haves

Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces. 

Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.

So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.

Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products. 

What is an Ecommerce Consultant?

An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.

An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.

Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.

1. Brand Obsession/Specialization/Passion

At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services. 

2. Proven Results

It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.

3. Wide Range of Marketplace Expertise

It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.

4. Network of Resources

The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.

Achieve Your Ecommerce Goals With Pattern

Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces. 

With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.

Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.