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5 business benefits of social commerce

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedJan 20232 min read

The way that people buy and sell products and services is changing. With the rapid development of technology, the internet, and smartphones, consumers are now much more likely to make purchases via social media, making it a powerful tool that businesses should harness.

This is what is meant by social commerce: selling your products or services through social channels like Instagram, TikTok and Facebook. It’s a growing industry, with some sources estimating it to grow at three times the rate of traditional commerce in the next few years.

The benefits of social commerce to retailers include growing your audience, reaching better engagement on social channels and developing better customer relationships, among other things. Keep reading to find out answers to questions such as “what is social commerce?” and to learn more about the benefits of social commerce.

Before diving into the benefits of social commerce, it’s useful to first understand the social commerce definition. In simple terms, it just refers to using social media profiles to sell products and services. This doesn’t just mean carrying out marketing or promotion, rather the consumer is able to make the purchase directly within the social app.

But how does social commerce work in practice? Well, there are various ways that you can sell products through social media. These include:

Shoppable posts that allow you to tag products in a post and offer customers a chance to buy them.
Shoppable ads that are targeted at certain users and do not require them to follow your account.
Storefronts that exist on some social apps, allowing you to make an ecommerce store within your social app.
Influencer content, in which the influencer can tag your products just like in a shoppable post.

Making the most of some of these tools is a great way to grow your ecommerce business.

Now that you know the social commerce definition, you might be wondering why many companies offer this. There are numerous advantages to using social commerce, which is why so many businesses are choosing to do so. The benefits of social commerce to retailers include:

Grow your brand awareness

There are billions of people across the world using social media, and by implementing social commerce into your business strategy, you’re able to reach a much wider audience. Most consumers now discover new products on social media rather than through a company’s website.

Engage with your customers and receive feedback

Selling products on social media gives your business a personal touch, allowing your customers to feel like they are in more direct contact with you. They’re able to make comments on posts or send messages, opening a conversation and allowing you to gather honest feedback to improve your business.

A frictionless shopping experience

It’s sometimes difficult to make a sale online, and even the slightest inconvenience can put a customer off. This leads to abandoned shopping carts and missed sales. By offering customers the chance to purchase in app through social commerce, you create a more seamless shopping experience that is likely to result in sales and improve customer relationships.

Data collection and personalisation

One of the key benefits of social commerce is the ability to collect useful customer data. Social channels such as Facebook, Instagram and Pinterest provide useful insights into your consumers’ behaviour and habits, allowing you to build better customer profiles and provide a more personalised shopping experience

Improved SEO

Social commerce is an easy way to boost the traffic to your company website – simply link the website to content on social media. It’s one of the top ways that customers end up on e-commerce sites.

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