27 Jun

What Social Commerce Means For Your Business

Posted in Small Business Advertising, Social Media on 27.06.16 by John Meloche

When thinking about the online component of a business, people typically focus more on E-commerce and online transaction processing. In this process we tend to understate the importance of social media. There is a new subset of E-commerce that’s becoming more and more relevant these days: Social Commerce. Social Commerce can be defined as “a subset of electronic commerce that involves using social media, online media that supports social interaction and user contributions. to assist in the online buying and selling of products and services.” (Cohen, 2011)

What does social commerce mean for your business? Social media can drastically impact your businesses’ sales and operations. Advanced advertising campaigns on both Facebook and Instagram now allow you to zoom in completely on your target audience, no matter how specific that may be. Not only that, but most social media advertising campaigns (including Facebook and Instagram) charge on a “per click” basis. Meaning that your advertising is truly charged on its effectiveness. This in turn allows you to optimize your spending and permits you to be more efficient with your advertising.

Social Media is a huge forum for businesses to attract potential clientele. Social Commerce is a big trend and is continued to grow. Brian Hughes from Small Business Trends noted that the top 500 retailers earned $3.3 billion from social shopping in 2014, a 26% increase over 2013, and well ahead of the average 16% growth rate for E-commerce. Its clear Social Commerce is an up and coming trend and will continue to grow rapidly so long as social media remains a mecca for communication. So do yourself a favor and make sure your business isn’t a #throwbackthursday and get on social media now!

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