Why 86% of Executives Say Social Commerce is a Growing Part of Their Marketing-Driven Revenue PlansNov 18, 2021
It has now been one year since Instagram rolled out its Shop tab in Australia, and wowzers what a year it has been for retailers who have been able to tap into this new way of doing business.
“According to data from the Facebook-owned platform, 90% of users follow a business, with 83% of Aussie users saying they have found new products on the ‘gram and 80% deciding to buy products on it. On top of that, the number of people looking at products on Instagram has risen 60% year-on-year in Australia”.
Australia is now third in rank of countries using social media as an ecommerce channel, putting us up there with China and the US! Accourding to emarketer.com, 30.3% of Australian internet users have bought from social commerce channels in 2021. 49% of Millenials and 43% of Gen Zers have purchased directly from a social media platform group in the past year! (The Harris Poll)
That’s a huge portion of the market looking to make their purchases more convenient.
Why are we turning to our socials (particularly Instagram) to buy?
Social commerce is incredibly powerful, being able to take people from the awareness stage to the consideration stage and decision-making stage of the buyer’s journey all in one place, without them ever having to leave their preferred app.
According to a Facebook case study, Laura Dover, the Global Digital Communication Manager at Barbour, says “Since we started to use the feature, our sales from Instagram have increased by 42% and traffic to our website from Instagram is up 98%”.
What are some of the benefits of Social Commerce?
- More sales opportunities – sharing your products on social opens up a brand new revenue stream, more chances for your products to be seen, and more opportunities for people to buy from you.
- Reduces the friction to purchase – social commerce can take people from the awareness stage to the consideration stage and decision-making stage of the buyer’s journey all in one place, without them ever having to leave the platform. Did you know that only 7% of people who add items to their cart actually purchase. Social commerce leads to higher conversion rates and fewer abandoned carts from the sheer convenience that it offers shoppers.
- Better customer service – social commerce makes it possible to connect with your customer at the point of purchase through direct messaging, so your customer service team can answer questions about products as they come up. Another benefit is that the customers’ order information is easily visible all in 1 place, so you don’t have to toggle through multiple platforms to find information like the status of a customer’s order.
- Measurable impact – through link tracking and social commerce, you can see which posts are leading to sales and the direct impact these are making to your bottom line through revenue figures.
How to get started?
Once you've enabled Shopping, you can use product tags to highlight products in your photos and videos across feed and stories.
With the Black Friday bonanza and Christmas Shopping spree just around the corner, you have just enough time to launch your first promotion for the occasion!