The internet has given rise to the eCommerce world, and it’s impossible to overstate eCommerce’s influence on modern living. In fact, global eCommerce sales exceeded $3.4 trillion just last year.
While commerce isn’t slowing down anytime soon, the rise of social networks has also changed how many companies and organizations market to consumers. “Social commerce” refers to the fact that consumers can make purchases within social media platforms. Given that billions of human beings currently use social media, it’s easy to see why social commerce is gaining traction.
Let’s say that you started a company where you sell clothes over the internet. You may have never considered investing in a brick-and-mortar store, but you have been able to leverage the power of the internet to drive sales. You are proud of the fact that you get sales from all over the world, and you sell these clothes from your own personal website.
This is a classic example of electronic commerce or eCommerce for short. eCommerce is used to describe any transaction, whether products or services on the internet. Since anybody can have access to the internet, your products and services can potentially reach many different demographics.
How Social Commerce Is Different
Going back to the example of running an eCommerce store, you find out that your sales are lagging. You also begin to realize that you have to invest a lot more into IT costs, and are frustrated at the fact that you are spending more money on marketing campaigns that aren’t effectively converting consumer and website visitors. As a result, you decide to create a Facebook store.
This would be a pivot from your eCommerce store to participating in social commerce. Now, you’ll be selling products or services directly from your Facebook page, and begin focusing more on Facebook social media strategies than any other marketing tactics and methods.
There are pros and cons when it comes to eCommerce and social commerce, and there are some companies that might flourish in one space while floundering in another. Social commerce might make it so that you don’t have to spend as much money on marketing, but it also means that it requires much more daily monitoring. As a result, social media marketing could take time away from focusing on other aspects of your business.
eCommerce also has its challenges, as well. eCommerce business owners have to spend a lot more time and money, ensuring that hackers cannot cause a data breach, or figuring out how to combat credit card fraud. There’s also the fact that there are a lot more hurdles regarding taxes and regulations since a social media platform won’t be helping you navigate the process.