The Impact of Social Media on E-Commerce

Right now, nearly 70% of the global population is scrolling through some social media news feed. Whenever a viral trend rises, it sends massive waves around the world, affecting multiple aspects of society. For instance, a viral TikTok trend testing the durability of Stanley cups boosted the company’s revenue by more than 10 times in just three years. 

Soon, Stanley cups could be found at any online store due to their social media-driven popularity. Arguably, a significant share of the popularity of platforms like dafabet sports betting stems from the support and promotion of influencers. These are pretty on-the-nose examples of how viral trends can shape e-commerce, but there are other, less obvious effects as well. Learn more about them here. 

From Search to Discovery

Not too long ago, e-commerce conversions relied almost purely on customer intent. That is, a customer would go to google to search for a new blender or a pair of running shoes they already need. In other words, customers had to actively search for the best options for themselves. Now, people “discover” what they need while scrolling on social media, where users’ feeds are carefully curated by algorithms. 

Based on their behavior (including watch time, posts they liked, commented on, or shared, etc.), these algorithms can suggest products that are more likely to meet individual tastes and preferences. Here are some other ways Instagram, TikTk and the likes impact consumer behavior online. 

• Strengthening of brand community and loyalty

• Enhanced product discovery (via news feeds)

• Instant feedback from customers via comment sections

Building a New Tradition

The so-called “social commerce” (that is, social media-based commerce) is a relatively new phenomenon. However, it’s already outpacing e-commerce and traditional media for quite a few miles. Indeed, it brings quite a few advantages. For once, customers don’t need to leave their social media app to complete a purchase; they can do so right there.

The social commerce approach turns social media into a digital marketplace, reducing consumer rejection because the ads aren’t interruptive. Instead, it’s naturally promoted by their favorite influencers, making for a much smoother sales journey. Here’s a quick comparison between social commerce and traditional e-commerce.  

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The Reaction

Modern e-commerce brands have already realised the shift in consumer behavior and are investing heavily to join the trend. For instance, more brands have been including checkout buttons on social media apps like TikTok, Instagram, and YouTube. It may seem like a small detail, but it’s in fact a game-changer. If consumers need to leave their social media app to navigate lengthy buying journeys, most will give up the purchase midway. 

In this context, adding in-app checkout options significantly increases sales. From fast food to fashion, the most famous brands in real life also have a strong presence on social media, including Nike, Sephora, and Taco Bell. The common phrase “if you can’t beat them, join them” is particularly true in the business world.