Gone are those days when business owners had to pay for radio and television advertisements to air their brands. Despite the total costs of these advertisement mediums, they don’t get publicity commensurate with the high costs. Also, people don’t need to go through the pains of owning a website and the additional costs of hosting.
E-commerce now leverages social media platforms to thrive in an ever-evolving world. Business owners can use ads on platforms such as Instagram and Facebook to reach more people worldwide. The benefits of Facebook and the impact of social media on e-commerce can’t be overemphasized.
Also, business owners can buy cheap Facebook comments to grow their business accounts on Facebook. In this post, we’ll discuss the impact of social media on e-commerce and how businesses can benefit from it. Continue reading to learn more.
An Overview Of E-Commerce
E-commerce is a general term that describes transactions that use online platforms as their medium. Such transactions could be buying and selling goods and services or transmitting data or funds. The internet is the primary tool used for this purpose.
Some popular e-commerce platforms you may have heard of include eBay and Amazon. Typically, consumers visit websites that serve as online stores, go through the products displayed, place orders, and make payments. PayPal is commonly used for payments.
After the order is approved and validated, the consumer will be notified of the success of the order placement. Meanwhile, the fulfillment or warehouse department is also notified that they can dispatch certain goods or services to a customer (which happens to be you, in this case).
At this point, the customer can access certain services or wait for the goods they ordered to be shipped to an agreed location.
Types Of E-Commerce That Leverage Social Media Platforms
Business-to-business e-commerce, also known as B2B, is a kind of e-commerce that occurs between businesses. A typical example is online directories companies. Also, websites that exchange products and supplies use this kind of e-commerce. Such transactions are initiated via e-procurement interfaces.
This is the popularly known kind of e-commerce, also known as B2C. It involves retailing products and services from the business owner to the customer or consumer. Amazon is the most popular online store with a strong B2B e-commerce market presence.
Also known as C2C, this e-commerce involves consumers trading goods and services. C2C usually requires a third-party online platform for such transactions. Social media platforms are popular for this kind of e-commerce. Common examples of C2C are classified ads and online auctions.
Consumer-to-business e-commerce allows consumers to advertise their products and services online for businesses to patronize them. Such products could be design templates, images, and photographs. iStock is a popular C2B site where individuals can sell pictures.
This refers to electronic transactions between businesses and public administration or government organizations. The products involved in B2A e-commerce are usually registers, legal documents, fiscal, social security, and employment data.
Consumer-to-administration (C2A) usually involves consumers and administrative or government bodies. Some applications of C2A are taxes, social security, and health services payments.
Shortly known as m-commerce, mobile e-commerce is used to describe online transactions done via mobile devices. This could be mobile payments, banking, or shopping, done using tablets or smartphones. Mobile chatbots are a commonly used medium for this kind of e-commerce.
Facebook As A Tool For E-Commerce
According to Hootsuite, ads on Facebook can reach more than 2.18 billion people around the globe. Facebook is arguably the most popular social media platform, reaching about 59% of all active social media users.
Due to a large number of users on the platform, it has become a go-to spot for online business owners who seek to reach a wider consumer base. As a result, over three million businesses actively advertise their brands and products on Facebook.
Today, it’s impossible to reach a worldwide audience without an online presence. Facebook and many other social media platforms can help you achieve that.
Interestingly, Facebook allows you to create a business page or e-commerce store where you can add your products. In addition, Facebook doesn’t demand a share. Also, many Facebook users buy products they find on Facebook ads. That said, below are some features that make Facebook an ideal tool in the hands of business owners and for e-commerce.
Reasons Why You Should Include Facebook In Your E-Commerce
- Facebook has a wide demographic range.
- The platform has an ever-increasing community of over 2 billion active users.
- Facebook is easily accessible as it has apps that can be used on mobile devices such as smartphones and tablets. About 80 percent of the total number of Facebook users access the platform via mobile devices.
- You can use Facebook links to boost your SEO.
- With Facebook, business owners can connect and link up with their clients on a personal and more friendly level.
- Facebook allows brand owners to interact with customers and receive honest feedback on their products and services.
- Facebook has the highest e-commerce conversion rate compared to other social media platforms.
- It is a great medium for businesses seeking to partner with other e-commerce sources, vendors, and sellers.
- Facebook Market is a feature of the Facebook app where individuals and corporate businesses can advertise and sell their products to other app users.
- Facebook video ads allow businesses to drive up their sales. In addition, these videos can be used in promotion campaigns, customer testimonials, and new features or products.
The Impact Of Social Media On E-Commerce
E-commerce will lose a great percentage of what it is without social media platforms. As a result, more brands are tapping into the huge potential of social media to sell their products.
With new technologies and features added to these platforms daily, marketers boost sales through their social media accounts.
Merchants can now reach a wider audience and increase visibility among potential customers. Also, many potential clients researching brands and businesses on social media platforms like Pinterest can know more about them.
The Positive Impact Of Social Media On E-Commerce
Boosts Brand Awareness
A few things are more important to a brand than making more sales. First, this implies a wider reach of their brand’s name. One of the most effective ways to reach a wider audience is following trends and adapting your marketing strategies.
This is important because thousands of individuals who search for trending topics will easily find your posts and, in turn, your business. Not only will this help your brand go viral, but you’ll also raise the number of sales made by your business.
This YouTube video will aid you in learning to modify your strategy on social media to boost sales.
Easy And Improved Connection Between Businesses And Consumers
Before the incorporation of social media in e-commerce, it wasn’t so easy for businesses to interact with their customers. This happens only through user reviews and when a customer enters a store. The business owner or a representative can chat directly with a customer through social media.
Customers who communicate directly with a merchant are convinced the company takes them seriously. This makes them feel directly connected to the brand and more likely to bring others.
Drive More Traffic To Your E-Commerce Website
No business wants to create product websites that will only get a handful of visitors in a year. With social media, businesses can add a link to their website for visitors who care to take a look.
This visit increases the number of clicks your website receives, making your site appear on the first SERPs. The higher your business website appears on a result page, the higher your potential to get more customers.
You can’t shut unsatisfied customers up. So, if you’re incorporating social media in your marketing, you’d better be ready to deal with them. Potential customers who find such comments may have second thoughts about patronizing the brand. Delighted customers can also help brands save the day with positive reviews.
Aside from the positive reviews from satisfied customers, brand owners can try to appease the customer amicably. They also have the window to mention that they know the issue and are working on ways to fix it. This can help businesses to build a good reputation.
One of the endearing aspects of utilizing social media in e-commerce is that it’s free. Of course, this doesn’t mean that you won’t have to spend some money if you go for advanced packages or features. But social media is way cheaper than other modes of advertisement.
Simplified Shopping Process
It’s more comfortable for customers to navigate their favorite social media app than some unfamiliar e-commerce apps. As a result, several social media platforms have introduced in-app services to simplify the buying process.
Some of these platforms are Instagram, Facebook, and Snapchat. Snapchat, for example, has integrated the Verishop mini. This feature allows Snapchat users to buy fashion and beauty products directly from Verishop.
Negative Effects Of Social Media On E-Commerce
Brands And Business Owners Might Lose Their Reputation
Negative comments or reviews about a particular product from a brand can quickly spread across social media. Long after the cause of the review has been corrected, the brand’s reputation might still stay in the mud. Combating such incidents usually requires huge customer service to calm unsatisfied customers before the situation spins out.
Confidential Information Can Easily Slip Out.
If an employee accidentally spills confidential company information on social media, it could go viral in minutes. Likewise, a misdirected letter or email can be easily recovered or contained. But this is not the case with social media, as several persons can see such information in a very short while.
Threatens Employee-To-Employee Relationships
Social media platforms are interactive. Employees who manage the business’s social media handles can easily get carried away with other social media engagements. Most times, this happens at the cost of their interaction with colleagues. This could be a setback in businesses where teamwork is needed for progress because employees hardly interrelate.
It’s high time we shifted e-commerce from the traditional viewpoint of copying links from product packs. Instead, social media eliminates the stress of having to walk into a store before you can purchase goods. Also, business and brand owners don’t have to spend hundreds of dollars just for a TV or radio ad.
Facebook is the largest social media platform, with over 2 billion active users worldwide. If harnessed, businesses can make huge sales from e-commerce via social media. However, alongside social media’s positive impacts on e-commerce, you’d better have strategies and a robust workforce to keep situations in control.