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Mighty Encyclopedia

Social Commerce

What is social commerce?

Social commerce is the practice of brands using social media platforms for direct sales of their products and services. In the past, social media platforms were often used for advertising, with customers being directed to the brand’s website or a third-party sales platform for the actual purchase.

Social commerce removes the friction of taking a customer elsewhere and lets them complete a transaction on the social platform itself. Social commerce is already huge in China and it’s growing in the U.S..

Why is social commerce important?

Social commerce is important because it will streamline the way we purchase both physical and digital products and services. The constant struggle of online sales is the level of friction in e-commerce, as customers click through a maze of pages and finally click “check out” on a shopping cart page. The majority of shopping carts are abandoned before this can happen, costing brands billions of dollars in revenue.

Social commerce makes it way easier to purchase, since you don’t have to leave an app or platform and can often “buy now” with a single click. So far, Facebook, Instagram, and Pinterest are leading the social commerce revolution, but other platforms will soon join them.

Examples of social commerce

  • You click “add to cart” on a product promoted by an influencer on Instagram and purchase on the app.

  • You browse through the “shop” tab of a brand’s Facebook page

Now Read: How to Sell Digital Products