Social media is reshaping the world of ecommerce and is amplifying digital marketing patterns as social commerce trends take shape. A relatively newer entrant to e-retailing, social commerce involves the ability to either shop for and or buy products directly from a social platform. But what trends is social commerce creating, how are marketers cashing in, and what’s ahead for 2016? Join us as we explore seven social commerce trendsetters that will impact ecommerce this year.
Expanding Market Revenue
As of 2015, social commerce revenues peaked at $14 billion in the U.S. and $30 billion worldwide, according to eMarketer (see the chart below for further clarity). As this emerging trend grows in its popularity, expect these numbers to triple by 2020, as social commerce trends reshape how digital marketers approach their saturation strategies.
Consumers Will Flock To Curated Shopping Services
Curated shopping services will rank amongst the top social commerce trendsetters for 2016. Aside from rising superstars like Polyvore, which is well established, other contenders will also hop aboard the bandwagon, too.
A good example of this is found with a new curated shopping service called Outfittery. It raised $20 million in capital in early March of 2015, according to a TechCrunch report. It’s a curated shopping service just for men. Operating namely out of Europe, and servicing an estimated 200,000 men, the service has been able to consistently stay relevant while being able to also round up the necessary capital it requires to compete and grow.
Online Reviews Will Fuel Referral Traffic
Established review services like ShopSocially, Yotpo, Feefo and others help expand content marketing for online businesses by bringing a steady stream of customer written content that’s greatly relied upon by the consumer when making a purchasing decision.
Online reviews are indeed social commerce trendsetters, and will take center stage during this coming year because of the following facts that were furnished by eConsultancy:
- 61% of customers read an online review before they make a purchasing decision.
- 63% of consumers are likelier to make a purchase from a website that has user reviews.
- 105% chance of a customer converting during a visit when customer questions and reviews are offered.
- Consumer reviews are 12 times more trusted than product descriptions.
- Reviews have the ability to produce at least an 18% uplift in sales on any given ecommerce site.
Impulse Buying Will Become Trendier
Impulse buying is nothing new. That’s why there’s always a candy section at the checkout counter at any convenience store. It’s the same reason why you see odd items like pots and pans positioned near a bakery aisle at the grocery store. Leading the pack here as it relates to social commerce, though, is Pinterest.
The new “Buy Now” button has the ability to reach as many as 2 million target users, explains Proforma. Considering that 93% of Pinterest users plan purchases based upon the pins that they view on this site, it’s easy to understand just how powerful a tool an impulse buy button can be. But how much in referral value is it really worth? Take a look at this average order value chart below. It’s eye-opening.
Omni Channel Shopping Will Be Exemplified
This past year, retailers edged their way into the omni channel shopping market, perhaps the most telling of all social commerce trends. Why? Because it’s one of the most profitable niches that exists. According to Fast Up Front, 500 retailers raked in an estimated $3.3 billion in revenue between 2014 and 2015. This year, experts are predicting that this number could very well triple and balloon past $10 billion.
2016 Will Set New Benchmarks For Social Commerce
In the New Year, expect new things. This time around, it’s the going to be the rapidly expanding market share of social commerce as a whole. Think big. Here’s a good way of assessing it. From 2013 to 2014, social commerce experienced a 26% year-over-year growth. During this time, social platforms grew by a whopping 200%. According to Marketing Tech News, in a survey that covered 100 marketers, 52% said that social commerce will be this year’s biggest online trend.
Social Commerce Will Claim Its Slice Of The Retail Pie
Lastly but certainly not least, social commerce will finally grow up from being a teenager into an adult, metaphorically speaking of course. According to Social Media Today, from 2012 to 2015, social commerce grew from just $3 billion to $14 billion. By the end of the year, it will represent 5% of all online sales, as this Google trends chart below reflects.
What Does The Future Hold?
So what does social commerce have in store in the immediate future and, more importantly, during this New Year? A lot. Enjoy the convenience of being able to buy directly from the brands you love on the social media sites you frequent the most. Be cautious that you do not impulse buy too often or your checking account may divorce you.
In the end, make sure that you take advantage of the many modern benefits that we enjoy as an evolving and technologically advanced society. Because back in the 80s, if you even tried to explain how to shop on a social media site from a smartphone, you would have been laughed all the way into 1993, where you’d have almost no ecommerce options, no social media to speak of, and a shoddy dial-up internet connection measured at 1,200 baud (which was considered top-speed back then). Happy New Year!