E-commerce vs Social Commerce: The Business of Buying & Selling Online

Introduction

Digital shopping is here to stay. With e-commerce, customers can conveniently browse products and services online, purchase them conveniently online, and have them delivered to their homes. E-commerce has a lot of benefits for businesses and customers.

It allows companies to reach new audiences and sell more products without having to increase the number of physical stores. It allows consumers to shop from anywhere they like, at any time of day and from any device that they like.

An Overview of the E-commerce Process

One reason why online shopping is so popular is because it is so convenient. This might make you wonder how it actually works. The e-commerce process can be broken down into these steps: When a visitor finds a product that they want to buy and clicks on it, this triggers a purchase request. This purchase request is sent to a payment gateway.

The payment gateway then processes the payment and sends a request to the inventory system. The inventory system verifies that the product is in stock and then sends a confirmation to the customer. The customer is then redirected to a confirmation page.

The inventory system then updates the inventory to show that the product has been sold. The payment gateway then transfers the money to the company. The company then ships the product to the customer and stores their address.

Social Commerce

Social commerce is a subset of electronic commerce that involves social media, online media that supports social interaction and user contributions. It’s also known as user-generated content (UGC), because it relies on people creating their own products and sharing them with others via the internet.

It is more than just another way of doing business on the internet, it’s a fundamental shift in the way people shop and buy.

Social Commerce can be defined as: "an extension of e-commerce that leverages social media platforms as means to connect with potential customers.”

The term "social commerce” can be a little misleading. It’s often used interchangeably with the word "e-commerce,” but the two are very different.

E-commerce is simply buying something online through a website or app. Social commerce, on the other hand, is more than just another way of doing business on the internet; it offers consumers new ways to interact with brands, engage with their community and access information about products they love—all while bringing their friends and family into the mix.

It also encourages them to become advocates for brands they support by sharing their experiences through social networks like Facebook, Twitter or Instagram.

The most important form of social commerce is what happens when an existing customer mentions their purchase to their friends or family then they get intrigued and buy based on this word of mouth advertising.

Social commerce uses both traditional website features—such as text, images, buttons and checkouts—and new features like social networks, blogs or landing pages to create an engaging experience for users.

This can be either through peer-to-peer transactions (eBay) or by allowing customers to buy something from a brand directly through an embedded widget on their page (Shopify).

Pros

More Customers – With an e-commerce store, you can reach more customers than you would be able to in a brick and mortar store. This can help you grow your business and make more sales in the long run.

Convenience – Customers can shop from their own homes and at their own convenience. This can give them a better experience and make them less impatient than if they were waiting in line at a store.

Save on Rent – If you have a physical store, you will have to pay rent for that. This can be a large expense for some companies, but it is not necessary for an e-commerce business.

Social commerce is a dynamic new area where the consumer is empowered like never before. It allows businesses to cross-sell products through social channels such as Facebook, Twitter or Instagram by integrating these platforms into e-commerce websites for an enhanced shopping experience.

Cross-selling is when a customer is shown additional items that are related to the item they are viewing or have viewed. It’s a common practice in retail and is used by many businesses around the world. By providing customers with more options, like similar products that complement what you’re offering at an affordable price, you can help them make informed decisions about their purchases and increase sales. This can also increase customer loyalty if they enjoy your service enough that they’ll come back again when they need another product from your store—or even recommend it to their friends!

For example, you might see an ad for your favorite shoe store pop up in your news feed when someone posts about how much they love their new pair of sneakers or flats from there. Why? Because the brand has been paying attention to what you’re posting about—it knows you like shoes—and it wants to make sure that if any one else sees your post about those new kicks (or pumps), then maybe they’ll think "Hey! I need some new shoes too!”

Social Commerce is all about engaging consumers through social media and connecting them with brands to increase loyalty, trust, and ultimately sales for businesses at all stages of growth.

Cons

Higher Product Pricing – If you sell products online, you’re going to have to factor in the costs of shipping and the cost of the platform that you use. This can be a disadvantage because it will make your products more expensive.

Online Shopping has a Bad Reputation – Some customers might have a feeling that they are at risk of fraud when they make a purchase online. If you can prove that your e-commerce store is legitimate, you might turn these customers into long-term buyers.

Customers Expect Fast Delivery Rate – Customers expect to receive their orders fast. If you take too long, you might lose some customers.

Consumer Trust is Important – E-commerce customers might be skeptical about purchasing from your store. You can build trust by having a reputable brand, offering good customer service, and having a return policy.

Social Commerce is made for shoppers, not sellers — The main disadvantage is that this method was created for shoppers, not businesses. Since the entire process is focused on a certain Social Media platform, and it’s possible to check out within the platform, the sellers lose the web traffic.

Time-consuming — The effort of the company to engage consumers is time-consuming. The company must keep up with the content and interactions with its audience. Creating a shop on Social Media is simply not enough. Moreover, it is wanted by a business to build a brand there, since the web traffic decreases.

Conclusion

There are many e-commerce and social media platform options that you can choose from. This can make the decision-making process more difficult, but it can also help you find the best platform to fit your company’s needs.

Social commerce allows for an unprecedented level of engagement between companies and their customers. It gives businesses access to data that can be used to improve customer satisfaction, increase revenue, and boost profits through better marketing strategies.