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Social Commerce in the United States Is Picking Up Speed
Posted on August 22nd 2014
Social media networking has become a way of life for a solid percentage of the population and that includes shopping on social channels. It is estimated that social commerce will grow by more than 50 percent by 2015 and will represent a great source of revenue for online retailers.
More than a few years ago social commerce did not immediately take off and did have many hurdles to overcome. Consumers at that time were just getting their feet wet when conducting simple activities on their preferred social networks. Today the story has changed across the web and especially in the social networking sphere.
According to the community platform for data visualizations and infographics-Visual.ly-revenue for electronic commerce via social media will be $9 billion in 2014 and $14 billion in 2015. This represents retailers with advantages to generate more sales leads and tap into their targeted customers with the advanced analytics that exist today in the marketplace today.
So what is an average order value (AOV) by a social referrer? As it turns out Pinterest did not come on top of the ranks. On the Polyvore platform an order tends to be ($66.75) and on Instagram ($65) even. Pinterest came in third place with ($58.95) per AOV while Facebook generated ($55), Reddit ($52.96), Vimeo ($50.75), Twitter ($46.29), LinkedIn ($44.24) and Google+ ($40).
Facebook may not have the highest AOV, but thanks to its company direction and substantial user base it still amasses a large number of the orders. Exactly 85 percent of purchases from social media sites come from Facebook.
Things to remember and retain about social commerce
There are plenty of technical specs to remember and to put into practice what you should do as a business on a social networking service (SNS). As it turns out if you are wondering where to advertise your products well try these platforms (Facebook, Pinterest, Twitter, Polyvore, and Instagram) as a step in the right direction.
According to Internet Retailer, the e-commerce site referral traffic from social leaped from 36.3 million to 51.5 million unique visitors in 2013. All of this is attributed to a natural and seamless integration of companies like Pinterest and Facebook in developing the right visuals that attract consumers into buying products.
Another important aspect or metric to remember is sales on social media networking channels grew by 63 percent in 2013, asserts an Offerpop.com report. The numbers suggest a viable source of avenue to look into more closely.
Another trend happening very rapidly is the use of mobile coupons. Since shopping experiences are just taking off on social media it makes sense to give online consumers incentives to get a good deal. Noteworthy social and e-commerce sites tend to use coupons. LivingSocial, Pinterest, Groupon, Facebook, ChameleonJohn and others are just a few of the destinations to find deals.
This coupons approach does more than drive revenue; it allows for satisfactory purchases to be shared as a form of word of mouth advertising. You can also gather vital data on what sort of purchases are generated with specific products and also learn how they happen. This data intelligence compiled gives you plenty of ammunition into developing future product processes.
Takeaways from social commerce in China
While many users have stayed at home with the popular American-based social networks, China is becoming a fierce competitor of the United States (U.S). A Forbes.com analysis highlighted many differences in social commerce between both nations.
First of all China is set to overtake the reigning super power in terms of e-commerce revenue. One strategy that has paid off is social media platforms in the country is the integrated native e-commerce capabilities with those of the business of social media. Tencent and Alibaba have been noted as the pioneers and drivers behind the implementation of these success models.
In addition, Chinese Internet users are characterized as content creators while those in the US are content consumers. Furthermore purchasing power is massive in China meanwhile those in the US have a generational gap between purchasing power and social media consumption.
Finally, some food for though is three actions US marketers can apply on social commerce. One is focus stop focusing exclusively on social advertising. Second, do include actual social media proof for every marketing activity. Last certainly not the least have your organization prepare for commerce everywhere.