“Business is about solving people’s problem- at a profit”. Traditional businesses, local street businesses, large industries, Multinational companies (MNCs), etc – all kinds of businesses are important for a healthy economy. Any country that supports businesses and start-up entrepreneurship have better chances of quick growth. Commerce is the backbone of any economy. With the internet age and social media boom, E-commerce and Social commerce started flourishing.
You may be familiar with the term E-commerce. But Social commerce?? At least some of you may be new to this term. In Social commerce, products are sold or bought through social media. The entire shopping experience is through social media ie from checking the products, communicating with the business dealers, purchasing, and payout. E-commerce is the process of selling or buying products online.
How Social commerce differs from E-commerce?
Let me give you the difference between E-commerce and Social commerce. You wish to buy a brand new laptop and decide to check the best ones available online. Hurray! You found a super cool laptop with the best features and reasonable pricing on Amazon and bought it. Now, shopping through platforms like Amazon, Flipkart, etc can be examples of E-commerce (buying/selling anything over the internet).
Now, coming to Social commerce. It’s your best friend’s birthday coming next month and you plan to surprise her with a yummy cake. You have checked all sorts of traditional shopping for cake and found it is not worth your money. Then, one day while casually scrolling your Instagram and found a super advertisement about cakes, cookies which is very much in your city. You decided to go for it ordered a nice red velvet cake for your friend’s birthday. Now, this is an example of social commerce (buying/selling anything over social media).
E-commerce sales have increased over the years steadily and in 2022 global e-commerce sales are likely to hit $4.2 trillion. Some of the top e-commerce companies are Amazon, e-bay Inc, Shopify, Flipkart, etc.
Amazon was started in the year 1994 and it is one of the top e-commerce sites. It offers a wide array of products- books, electronics, home care, jewels and accessories, clothes, etc. On E-bay, you can buy products as well as sell too. Globally e-commerce sales are likely to hit $4-$5 trillion according to statistics and reports.
Social commerce market
The global Social commerce market is likely to hit $1.2 trillion by 2025. The clothing industry may have the largest amount of global purchases by which might be followed by consumer electronics. Instagram, Facebook, Pinterest, Snapchat, TikTok are some of the most popular social commerce platforms.
Social commerce V/S E-commerce
Social commerce purchase is easier than E-commerce purchase. When you buy a product, you don’t have to leave that social media site in social commerce. Also, there is a more personal connection between business and consumers in social commerce. Whatsapp chat with business is possible for customers in social commerce which makes it much more interactive and engaging. In E-commerce, you can track your order, and is not possible to directly interact with a particular business.
Social commerce product sales can be easily increased on social media by word of mouth. Social media platform Instagram is most popular for social commerce because of its appealing visual display. In social commerce, the purchase is much easier than in E-commerce. Once you are on the site that is enough to go ahead and shop.
E-commerce v/s Social commerce in a nutshell
- With the internet age and social media boom, E-commerce and Social commerce started flourishing.
- In Social commerce, products are sold and bought through social media.
- E-commerce is the process of selling or buying products online.
- Some of the top e-commerce companies are Amazon, e-bay Inc, Shopify, Flipkart, etc.
- The global Social commerce market is likely to hit $1.2 trillion by 2025.
- Social commerce purchase is easier than E-commerce purchase.