E-Commerce is changing – Social Commerce is on the rise!
03-03-2021 11:16 o'clock, by media plan
Having long since arrived in Asia and an indispensable part of everyday life for consumers, the buzzword social commerce will also be the trending topic in 2020 in the western world.
Plattforms like Taobao, a subsidiary of e-commerce giant Alibaba Group, focus on C2C retail. Taobao’s website is among the top 10 most visited websites in the world.
“Live streaming is not just a feature. In the future, it will be the mainstream e-commerce model. ”Jiang Fan – CEO Tao Bao
The main difference to platforms such as ebay, which are already established in the western world, is that Taobao offers a live chat function that enables direct communication between buyer and seller.
Put in a simple way, social commerce enables brands to sell their products directly via social media platforms. With this, the social media platforms take a further and decisive step towards covering the entire funnel within their own channels. The social commerce topic was certainly also accelerated by the corona crisis. Completely changed buying behavior was the result. People couldn’t go to stores anymore. Strolling now takes place on the smartphone. In combination with integrated check-out processes within the social media platforms, a better user experience is guaranteed and the purchase process is simplified.
The digitization of sales channels has become indispensable and will certainly become even more decisive in the future.
Google is also approaching the topic!
With Shoploop, Google now also wants to jump on the bandwagon of social commerce. The platform offers the opportunity for short videos in which users test, rate and present products. One click is enough to save a product or go directly to the retailer’s website. On the one hand, Google provides an answer to Facebook’s efforts to develop more and more as a shopping platform with the introduction of Facebook Shops and Live Shopping, and on the other hand, an answer to the short video trend around TikTok and Instagram Reels.
Social commerce offers online retailers another opportunity to strengthen the relationship with their customers in a new way and to generate more sales. A faster checkout and the fact that customers can be reached in a place where they are already located create more trust and improve conversion. This calls for a rethinking in terms of marketing and sales. We would be happy to advise you on the subject of “social commerce” and create a joint strategic plan for the approach.