Social Media vs Ecommerce: How You Can Double Your Sales in 2021
By Stephen Paul Samynathan on February 18, 2021
Selling product & services on social media is fast and easy to setup. This is where most people enjo using it to interact and communicate with friends and family.
Ecommerce has entered our lives significantly in the last decade. From being cynical of purchasing products online to being our main provider of all shopping needs, eCommerce has come a long way.
With eCommerce, there is a fresh upheaval in a new online sector called social commerce. It's quick, easy to use, and available via our favorite social media platforms.
Obviously, we know from our experience in digital commerce over the years that online companies are easier to launch. They are more agile and have low running costs.
Each type of business comes with its advantages and disadvantages. This article will also help you choose between social commerce and eCommerce, the best way suitable for your business needs.
Table of Contents
What Is Ecommerce?
Ecommerce is buying and selling products over the Internet. This process is also termed electronic commerce or internet commerce, where products can be physical goods or services.
Here, customers can select the products by means of images or product descriptions given by the seller. Items will be delivered to the purchaser or transported by other means, depending on the type of goods/service.
Some of the big eCommerce giants are Amazon, eBay, Alibaba, Shopify, Flipkart, among others.
What Is Social Commerce?
Social commerce is the incorporation of the full experience of eCommerce into social media. Users can buy from their social media feeds.
It varies from social media marketing, where the consumer is diverted from social media sites to an eCommerce store. Instead, it gives users the opportunity to check out directly on the social site they are actually using.
Social commerce employs chatbots and messengers for a seamless checkout process, which decreases the number of clicks and enhances the customer buying experience.
In Malaysia, the top three social commerce platforms that profit the most are Facebook, Instagram, and Twitter.
Outlining The Difference Between Social Commerce And Ecommerce?
Ecommerce is actually the main market for many sectors, but social commerce is not far behind.
Ecommerce interactions are handled on the seller's website, while social commerce exchange interactions occur on social media platforms and on the seller's websites.
Social commerce is the development of online shopping through eCommerce sites. What social commerce has successfully accomplished is that it has moved the entire online shopping process to a place where potential buyers spend a great deal of time and share their experiences with their friends.
In social commerce vs. eCommerce, both have niches that distinguish them. Let's compare the two over four majors features.
Even though eCommerce is slackening its operating costs, it must bear the tremendous cost of promoting its platforms. Customers are getting smarter every day. Customers are more knowledgeable about the goods than the e-commerce sites themselves.
Ecommerce also has a lot to do with knowing their clients. However, they can be easily defined in social commerce and made a reference point in a resource bank.
The information generated by users of groups or their public feeds can be used to recognize the demographic profiles of consumers that sellers can use for targeted campaigns.
Loyalty & Promotions
Social commerce offers extra insight into loyal clients, and brands can only offer exclusive deals to them! In return, this will keep consumers happy and make sense of belonging to brands.
Ecommerce, on the other hand, relies on social media networks to support and develop brand loyalty either through their own social networks or through marketers.
Every online business needs to be a dynamic window that can change based on the customer's preferences and requirements.
Social networking channels help highlight products based on the customer's preferred product selection. They will have a more robust customer engagement, opportunities for customer testing, and quality reviews.
Ecommerce sites have also simplified user experience with consumer feedback through monitoring and analytics. This helped them boost their revenue with immediate gratification.
Ecommerce sites have been leveled by the advent of personalized messaging for their product pages. Customers should ask questions and ask about key features that help them make appropriate choices.
Social commerce with embedded messengers offers improved connectivity when buying, comparing, and even making transactions and payments all in one spot.
The Number Games Of Social Commerce Vs Ecommerce
Ecommerce revenues have risen steadily as online shopping is the most common activity on the Internet. Sales are expected to grow from 1.3 trillion in 2014 to 4.5 trillion in 2021. That means a triple increase in just 7 years.
With 1.47 billion active users on Facebook every day, social commerce is placing eCommerce in intense competition.
30 percent of online shoppers say they're likely to buy a social media network like Facebook, Pinterest, or Instagram.
There has been a record of a significant rise in mobile commerce. Sales made by mobile devices have increased by 15% since 2016. This was attributed to an unprecedented $1.4 trillion growth in millennials and users of GenZ.
60 percent of Instagram users say they will find new items on Instagram. And in the battle between social commerce and eCommerce, the revenues of Social Media Messenger are largely outperforming the current ROI email champion.
Social commerce is now the buzzword around the world of online shopping. Social commerce has demonstrated that online shopping is not primarily about offering and discounting, but the trick is to keep consumers engaged.
Benefits Of Social Commerce In Tier 2 Cities
The growth in mobile use and the low cost of data have contributed to increased start-ups in social commerce. They support thousands of first-time Internet users in suburban areas by setting up social media online stores.
In 2019, social commerce became the fastest-growing category of India's online retail industry. Some of the top startups in social trading include Meesho, BulBul, DealShare, and others.
Meesho, one of the first social commerce startups, has been active in developing alternative distribution networks for homemakers, small businesses, teachers, and students to sell products on WhatsApp, Facebook, Instagram, and other social media networks.
They sell products from more than 15,000 suppliers in more than 700 small towns, putting together about two million 'social sellers,' about 80 percent of whom are women.
The app is available in seven local languages, with 40% of its regular active users (DAUs) consisting of non-English speakers.
These social commerce apps have been critical for first-generation entrepreneurs to communicate, interact, and contribute to the empowerment of the broader community.
Combining Social commerce and Ecommerce
The ability to extend the store and connect with customers may be restricted to eCommerce platforms. As a result, you can create an extra social networking store to draw more customers who live anywhere.
As a consequence, you can build greater brand loyalty and better customer experience. It means that your income is still secure and lets you keep ahead of your rivals.
In the ever-changing contemporary world of commerce planning, a long-term approach protects you safe from threats and downturns. Slowly, step-by-step sales will help you analyze and understand your customers better. Choose various forms of commerce and explore the advantages of each site.
In Malaysia, WhatsApp usage is all time high. This is where an interesting hybrid approach which is combining between social media as the main traffic source and also WhatsApp as the closing and paying for product.
Co-founder of Specflux Solution, he builds IT products that work. He is also running Ipoh based website design agency with his partner. If not working on client's project, he's a part of a vibrant IT community in Ipoh locally known as Digital Perak.