Tech Bytes: Three Reasons Social Commerce is Arriving

Social commerce is finally here.



Various retailers and social media platforms have been experimenting with letting consumers make purchases directly from social networks for some time. But in the past few weeks a flurry of new and expanded social commerce options have been introduced.



From the formal launch of the Twitter Buy Now button, to significant expansion of Pinterest Buyable Pins, to You Tube offering shoppable ads, to Facebook and Instagram’s continuing efforts to make their platforms commerce-friendly, social media is becoming a place where consumers make purchases.



Why is there so much social commerce activity? Here are a few key reasons.



Sutton’s Law

When asked why he robbed banks, noted criminal Willie Sutton is said to have replied, “Because that’s where the money is.” Similarly, retailers are selling goods directly from social media sites because that’s where the consumers are.



Large numbers of consumers primarily engage with the Web via social media and/or apps. The increasing status of mobile as a primary Internet device is partly responsible. It’s a lot easier to click on a social media app than open a mobile browser and type a URL on a tiny virtual keyboard.



In addition, time-starved consumers can easily log into a social media site and browse through pages and posts of their favorite retailers, rather than take the time to visit and navigate numerous separate e-commerce sites. Smart retailers are making sure they are as accessible on social media as possible.



Instant Karma

Did I mention today’s consumers are time-starved? In modern Internet parlance, “fast” means “instant.” Every second a consumer has to wait or every extra step they have to take to complete a purchase is a major inconvenience that can lead to abandoned carts and lost sales.



Clicking on a social image or post to reach a retailer’s e-commerce site no longer cuts it. Consumers do not want to leave the comfy confines of their social space, or have to navigate a new and possibly unfamiliar e-commerce site. They want to click (or tap) and be done with it. Bonus points if they can store their payment info for true “one-click” social purchases.



Peer Pressure

Social commerce provides consumers with a lot of convenience, but there are benefits on the retailer side, as well. Products are not presented in the inherently biased showroom format of an e-commerce site, but within a wider community of impartial observers and commentators.



When a consumer sees a retailer’s product on a social media site, the retailer can present it with legitimate, unsolicited third-party praise and promotions. Images of consumers happily using the item, video testimonials, likes and comments, and other messages from fellow consumers (or even friends and family) can make a social purchase much more appealing than a traditional e-commerce purchase.



Retailers can compound this advantage with the rich supply of social analytics data that is available. Consumers freely share personal information on social media they would never hand over on a retailer’s e-commerce site. This can be leveraged for much more precise targeting of promotions, discounts and deals to social customers.