The e-commerce industry and social media have always been seen as separate entities. While e-commerce is driven by webstores and marketplaces where buyers and sellers trade, social media is used mainly for customer acquisition and spreading brand awareness.
Today, that’s no longer the case. A new type of industry has recently emerged, aptly called social commerce. It’s the combination of both e-commerce and social media, where everything happens on a social media platform.
Sellers are now able to create a business page on Facebook, display their products, run ads, and communicate directly with prospects and customers. Customers can browse stores, buy products directly off Facebook, and liaise with sellers through Facebook Messenger.
Social commerce allows the possibility of being a one-stop center for both sellers and buyers, an ecosystem that maximizes the best parts of e-commerce and social media all at once.
Growth of social commerce in Asia
Asians are among the most active users on social media and use messenger apps on a daily basis. Smartphone usage is increasing exponentially and so has internet penetration rates around the region.
E-commerce is also booming in the region as consumer habits have shifted and evolved, with more people – especially the younger generation – preferring to browse and buy products from the comfort of their home (or office).
In Asia, a large percentage of online purchases happens through social media. A buyer might find something interesting on an Instagram page, sends a direct message to the seller, and the transaction happens immediately (usually by bank transfer or COD).
The appeal of social commerce
It’s interesting to see that although people shop online, they still like to speak to the person running the store. It gives a sense of confidence and trust.
While webstores and marketplaces are pretty sterile places where a buyer clicks a product to add to cart and a seller ensures the order is fulfilled and delivered, social commerce gives a whole new experience to online shopping.
It’s for that reason that social commerce is seen as the next evolution of e-commerce, where selling becomes easier for online retail entrepreneurs while creating a better experience for shoppers.Tags: ads, businesstips, E-commerce, ecommerce, ecommerce platform, ecommercebusiness, facebook ads, how to run promotion, marketing, online platform, online seller, onlinebusinesstips, onlineselling, onlinestore, sell on facebook, tips
This post was written by Nina