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 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)
Aug 30, 2022

Global Ecommerce Weekly News: 30th August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon set to shut down Amazon Care Amazon is closing its telehealth service, Amazon Care, which launched in 2019 as a trial program for its headquartered employees. Later the service was rolled out nationwide for employees and other companies. The ecommerce giant has now made the decision to move away from the healthcare space, believing it was not the right long-term solution for its enterprise customers. [Read more on CNBC](https://www.cnbc.com/2022/08/24/amazon-is-shutting-down-amazon-care-telehealth-service.html) Peloton closes new deal to sell on Amazon Following a recent deal, Amazon customers will soon be able to buy Peloton fitness equipment on the marketplace, marking Peleton’s first move outside a direct-to-consumer model. According to Peloton’s CCO, there are already around half a million searches on Amazon for Peloton products every month, despite having no presence on the marketplace. Some key products include the original Peloton Bike, retailing for $1,445 and Peloton Guide for $295. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/24/peloton-strikes-deal-to-sell-fitness-equipment-on-amazon/) --- Other Marketplace News --- 60% of Malaysians are buying from local sellers on Shopee A recent survey of nearly 3,500 respondents found that nearly half of the shoppers prefer to purchase from local sellers due to shorter delivery times. Other shoppers decide to shop locally due to the quality of the products made in Malaysia and an interest in keeping the economy running. As a result, smaller local merchants have been able to grow their businesses, and shoppers benefit from shorter delivery times, products of high quality and supporting local businesses. [Read more on The Malaysian Reserve](https://themalaysianreserve.com/2022/08/25/around-60-malaysians-are-buying-from-local-sellers-on-shopee/) Flipkart’s social commerce platform Shopsy crosses 100 million users Flipkart launched a social commerce arm, Shopsy, in July of last year, which has now surpassed 100 million users, ahead of its target timeline being the end of 2022. This acquisition of new users has made Shopsy one of the largest platforms of its kind in the country, and is expected to onboard a further 100 million by the end of 2023. The platform is centred around boosting local entrepreneurship and powering ecommerce for consumers across tier 2+ regions where users face challenges around trust and navigation when shopping online. [Read more on Business Standard](https://www.business-standard.com/article/companies/flipkart-s-social-commerce-platform-shopsy-hits-100-million-users-1220828006851.html) Meta joins Amazon and Walmart in bid for Indian ecommerce market Amazon mentioned earlier in the year that it would be building a logistics division in-house through its purchase of a 51% stake in Ecom Express, an end-to-end logistics firm, to make ecommerce deliveries more efficient in the country. Walmart operates Flipkart in India and is set to continue its investment in the marketplace. In an effort to compete in the Indian ecommerce market, Meta has partnered with Indian ecommerce company, JioMart, to offer customers a grocery shopping platform within its WhatsApp chat feature. [Read more on Pymnts](https://www.pymnts.com/news/retail/2022/meta-joins-amazon-walmart-indian-ecommerce-market/) --- Other Ecommerce News --- Ecommerce in Spain worth €57.7 billion in 2021 Spanish ecommerce saw 11.7% growth compared to last year, largely attributed to cross-border sales. In the final quarter of 2021, ecommerce sales in Spain were at €16.9 billion euros, at least 60% of which came from cross-border sales. Transactions from foreign locations to Spain generated a turnover of €1.56 billion in Q4, a growth of 27.7% compared to Q4 a year before. [Read more on Ecommerce News](https://ecommercenews.eu/ecommerce-in-spain-was-worth-e57-7-billion-in-2021/)
Aug 23, 2022

Global Ecommerce Weekly News: 23rd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to add mental health support to primary-care service Amazon is set to move into mental health therapy with its primary-care division, following its recent acquisition deal of One Medical. The plan is to partner with virtual behavioural therapy service, Ginger, to offer its Amazon Care users with on-demand access to mental health services, licensed therapists and psychiatrists. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/11/amazon-plans-to-add-mental-health-support-to-primary-care-service/) GMB union calls for £15 an hour minimum pay at UK Amazon warehouses Amazon recently offered its warehouse workers a 3% pay rise, which in comparison to the June inflation rate of 9.4% left employees disappointed. Following this, hundreds of Amazon warehouse workers stopped work last week, protesting against the minimal pay increase, seeking a minimum of £15 an hour. Recent protests consisting of employee walkouts and sit-ins aim to get a better offer out of Amazon. [Read more on The Guardian](https://www.theguardian.com/technology/2022/aug/09/gmb-calls-for-15-an-hour-minimum-pay-at-amazon-warehouses-in-uk) Amazon third-party sellers have received their first-ever holiday fee hike Amazon’s third-party marketplaces account for close to half of the company’s online sales. The company introduced a 5% fuel and inflation charge to its third-party sellers earlier this year, and has now implemented another inflation increase charge. Commencing 14 October, any seller who uses Amazon’s fulfilment service is subject to the price hike, which is set to be an additional 35 cents per item for products sold in the US and Canada. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/17/amazon-third-party-sellers-have-received-their-first-ever-holiday-fee-hike/) Amazon puts a pause on UK grocery shop roll-out as the cost of living increases Amazon has slowed down on its UK roll-out of till-free Amazon Fresh grocery stores following disappointing sales and the rise in cost of living. Allegedly, the company is no longer looking for potential sites to expand and if more stores are opened, they will likely no longer use a till-free system, as consumers become more cautious about spending. [Read more on The Telegraph](https://www.telegraph.co.uk/business/2022/08/21/amazon-pauses-uk-grocery-shop-roll-out-following-disappointing/) --- Other Marketplace News --- Shopee overtakes Alibaba across international markets Shopee has surpassed Alibaba and taken the top spot for sales outside of China. Singapore-based marketplace saw a year-on-year increase of 51.4% at the end of Q2 of this year, while Alibaba saw a 3% drop during the same time period. This can be seen as a promising development for start-ups and their ability to compete with some of the largest ecommerce giants in the market. [Read more on Exchange Wire](https://www.exchangewire.com/blog/2022/08/18/shopee-surpasses-alibaba-in-international-sales-amazon-searches-for-entertainment-exec/) H&M reopens its official store to Alibaba’s Tmall ecommerce platform It has been nearly 18 months since Alibaba removed H&M from its Tmall platform, following H&M’s criticism of human rights abuses in Xinjiang. It is estimated that over a million people, predominantly minorities in the area, have been unlawfully detained in camps across the city. Brands including Nike, Adidas, Burberry and Converse were swept up in the controversy, however H&M was one of the first to be targeted for speaking out about the issue. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/16/hm-returns-to-alibabas-tmall-platform-16-months-after-xinjiang-controversy/) Klarna launches new feature allowing UK consumers to view full online order history Buy-now-pay-later company, Klarna, has launched a new feature on its shopping app, which allows UK consumers to view their full online order history, regardless of whether they purchased the product using Klarna. The feature also shows delivery tracking and aids consumers in managing their online purchases more conveniently. [Read more on The Industry](https://www.theindustry.fashion/klarna-launches-new-feature-allowing-uk-consumers-to-view-full-online-order-history/) --- Other Ecommerce News --- Online marketplaces responsible for £280 billion business turnover in the UK Nearly 900,000 UK businesses are currently selling on online marketplaces, generating an estimated £282 billion worth of sales each year. This figure represents 6% of the UK’s annual business turnover, highlighting the notable contribution that marketplaces make to the UK economy, along with the potential for further growth in this area. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/09/online-marketplaces-responsible-for-280-billion-business-turnover-in-uk/)