In October 2021, there was news that created a buzz in the market about two live streamers of China Li Jiaqi and Viya who sold items of 3 billion worth during streaming. It is three times more when we compare to Amazon’s average daily sales. You can witness the power of Social commerce through the real story of these two streamers. By glaring at these types of examples we can say that Social Commerce is making a radical change in online selling and buying of merchandise when we compare it to traditional e-commerce. Why is this paradigm shift taking place?
People generally feel more connected in social commerce. At the same time, it creates immense employment opportunities for people. With Social Commerce, you are also contributing to the global economy by becoming a content creator, influencer, consumer, and seller. You could have ambiguity right now in your mind about what exactly Social Commerce is and how it can be a future of online selling.
What is Social Commerce
In layman’s terms, it is the use of social networking applications or websites in the context of e-commerce transactions. Social commerce comes into the picture when we integrate social networking applications and e-commerce. Statistics from the Bain and Sequoia report suggested that social commerce businesses whose GMV (Gross Merchandise Value) is around 2 billion dollars now will grow to around 16 billion dollars by 2025 in India. When it comes to the global scenario it will generate around 1.2 trillion dollars in the economy. It is a gigantic spike in the terms of the generation of the economy. How does social commerce work? We try to make you understand with the help of an example. When you land on FB or any other social media website you see ads for various products there. If you click on the link of that product you will be redirected to the e-commerce website. Basically, you are purchasing items with the help of both social networking applications and e-commerce websites. So integrated use of both gives birth to the term “Social Commerce”.
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Why it is the Future of Online Selling
These days people love spending time on social media platforms like Facebook and Instagram rather than on google. Generally, an average person spends around 2 hrs daily on social media applications. That’s why Selling and buying items through google ads has become obsolete now. Now people are relying more on creators and influencers of social media networking applications for purchases and sales. Users get proper authentic information through their favorite influencers and creators. They also feel more connected with them.
We also know that it is the age of digitization. Very soon 5g will be introduced in the Indian market and it will be spread to every corner of the country. With the large base of internet users in India i.e 2nd in the world, it is quite obvious that people will invest more time on social media platforms and content creator applications. That’s why good quality and accessible internet will also give impetus to Social Commerce indirectly.
Lastly, improved audience ad segmentation and targeting on social media, improved customer awareness, and deeper analytics have generated another seismic opportunity directly attributed to the rise of social commerce.
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