Thursday, 16 August 2012

Breaking down the barriers of social commerce

While many people use social media on a daily basis both for social interaction and to promote their business, many online stores do not feel that social commerce is a worthwhile endeavour unless you are a large brand with a huge social following. However, with almost a third of all online users, purchasing products over the Internet, social commerce is a great platform for any business, big or small, to attract a wider customer base. 

Within the next five years, it is believed that the total sales made through social commerce will reach over $30 billion. While the vast majority of this amount will go to large brands and corporations, it underlines the potential success any small business can achieve by tapping into this ever growing channel. 

When many businesses have been asked why they do not spend time fully exploring the potential social commerce can give them, many tend to state the belief that customers would be hesitant in using the credit card details to purchase a product over a social media site. This view is in fact unfounded with 45% of all social media users stating that they would be comfortable in providing their credit card details in order to purchase a product.

It's not only the willingness to purchase products that makes social commerce a profitable seller platform, but also the ease in which customers could then inform other people about the product they have purchased, with 35% stating that they would be more likely to share their purchased product when purchased through a social media channel as opposed to through an ecommerce store. What this means is that not only would you be able to gain a number of sales, you would also increase the reach that your store can gain, possibly resulting in you being able to gain additional sales through the sharing of that original purchased product. 

However, while there is a willingness for customers to purchase products through social media sites, many people are hesitant about using social media currency such as Facebook credits in order to purchase products. If you do decide that you wish to set up a social commerce store, you should look to set it up so customers are able to pay instantly with real currency, as opposed to first having to purchase currency specific to that social media channel. 

It is believed that by the year 2015, 50% of all online transactions by large brands will be made through either social media sites or mobile devices. This huge figure demonstrates the need for you to look at a social commerce platform for your small business in more detail.

If you do decide that you wish to expand your business across social media platforms, we at eSellution can help you get it underway: Click here for more information

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