Like, Comment, Share, Buy: Social Shopping is Going Mainstream
A perfect storm of soaring ecommerce, record social media usage, and consumers' reluctance to return to stores is creating an ideal environment for social shopping to hit critical mass this year.
Social Shopping Steps Up
The growth of social shopping is linked to human behavior. We're lazy, heavily influenced by our friends and hardwired for discovery. Add to that a virus spiking across the country and in-store experiences that feel like a hospital visit, it's easy to understand why we'll be tapping our way through our gift lists this holiday.
Since 2008, social has been selling us on shopping but for a myriad of reasons it never really arrived. Now twelve years later, we've got the scale, technology, and pandemic-inspired motivation to make it a reality. Social commerce has evolved since the early days. Instagram's latest iteration supports full checkout without having to leave the app, substantially shortening the buyer journey. Already generating $22 billion a year in sales, and projected to reach $40 billion in four years, scale is no longer an issue. Since last year alone, we've seen a rise of 69% in spending through social media, and given the latest shopping tools launched by TikTok and Snapchat, things will only accelerate as the experience becomes increasingly frictionless.
Amazon Can't Deliver Serendipity
As much as consumers love to shop during the holidays, crowded malls and the risk of Covid-19 infection will shift our habits. While the bulk of buying will still happen on ecommerce sites, social shopping delivers serendipity. Instagram and Facebook deepen the quality of our experience through algorithms that introduce us to things we're likely to love. It works the same way for commerce as it does for content, based on our feed (and our friends behavior) we discover products we might never know about otherwise. That implicit social validation is not to be underestimated, it gives you that psychological nudge to purchase.
Add in the ability to seamlessly check-out in a few taps without having to leave the app and the magic of moment becomes clear. While Amazon is fine for buying, social is superior for shopping. It's no wonder Sephora recently announced the addition of 80 top brands to its Instagram store.
Alternate Routes to Revenue
Although you can't buy everything in-app yet, TikTokers are creating their own affiliate links and racking up revenue through Amazon. The hashtag #amazonfinds includes videos (with 1.6b views) of products users are buying and sharing with their fans. While makeup sponge washing machines, vanity mirrors and ring lights top the charts, more mainstream (and higher priced) purchases like vacuum cleaners are emerging. Fast growing hashtags like #tiktokmademebuyit (370 million views) showcase platform inspired purchases.Layer in the launch of TikTok's official ad-based “Shop Now” call to action button (currently being tested by Levi’s) and the potential for real revenue becomes obvious.
Meanwhile, Snapchat recently teamed with NTWRK (think QVC for Gen Z) to launch an original shoppable series called “The Drop” featuring streetwear collaborations with celebrities and designers. When a few taps is all it takes to cop the latest kicks, it's easy to see why Snap's shopping has so much potential for younger consumers.
Influencers Are Standing By
Another reason why 2020 will be the year of social shopping? The influencer ecosystem is ready to support it. While KPIs for influencer activations have typically been limited to awareness or earned media, success can now be measured in revenue. Across most social platforms it's possible for influencers and creators to sell products directly from their profile pages, posts and videos. This gives them a way to earn more and provides brands with insights into attribution. Considering the pivotal role influencers now play in the path to purchase, conversions are likely to climb.
As the pandemic pushes into the holidays and consumers avoid in-person gift giving for safety reasons, platforms like SmartGift are rising. Here, shoppers choose a gift through retailers like Pandora, UnderArmour, and 1-800-Flowers, then give the recipient a chance to virtually “unwrap” their gift via text, or email – before it's shipped. They can swap the gift for another item at the same price or update the size, color or style. A simple perk like this brings instant gratification and saves your friend a trip to the mall or UPS store – which these days – is a gift in itself.
Key Considerations
The convergence of soaring ecommerce, record social media usage, and consumers' reluctance to return to stores will cause social shopping to hit critical mass this year
Social algorithms bring serendipity to the shopping experience, driving delight and conversions in the process
The influencer ecosystem is evolving to support social shopping adding revenue to deliver critical ROI
Innovations in social shopping can reduce gifting returns and deepen customer satisfaction
This article originally appeared in the July 14th, 2020 issue of Moving Image & Content’s agency newsletter. Register here to subscribe.