Big techs, social media giants and the shift to social commerce
By Zion Rufus
Fueled by the pandemic and the acceleration of social, digital, and ecommerce trends, social media platforms and big techs are leveraging this shift by facilitating new shopping processes to help connect consumers with the most relevant recommendations and offers.
The immediacy and convenience of online shopping has led to massive growth in ecommerce as social distancing and stay-at-home orders further propelled its popularity.
Led by Facebook, social media platforms from Instagram, YouTube, Snapchat, to Twitter, and big techs such as Google, are investing heavily in the incorporation of social media and ecommerce to sell, promote products and services, and drive revenue growth.
According to a study conducted by Grand View Research, the global social market size is expected to reach USD 3,369.8 billion by 2028. The success of social commerce stems in part from product targeting based on user interests, with sales generating more data that can be used for future advertising and merchandise placements. The market is primarily driven by the growing number of social media users, along with rising built-in e-commerce projects. The social media giants are eyeing the data generated from users’ shopping and browsing habits for targeted advertising.
During the height of the pandemic in 2020, Facebook launched its ecommerce integration ‘Shops’ to help small businesses sell online. Where consumers can discover trendy clothes and home goods, businesses can choose the products they want to feature from their catalog and then customize the look and feel of their shop with a cover image and accent colors that showcase their brand.
This means any seller, no matter their size or budget, can bring their business online and connect with customers wherever and whenever it’s convenient for them.
Facebook also revealed that it would display product ratings and reviews on ‘Shops’ on Instagram with additional details like photos and videos from users.
Another update that has been introduced is ‘shop ads.’ The advertisements on ‘shops’ are intended to offer people a customized shopping experience based on their shopping behavior.The new experience will send shoppers to where they are most likely to make a purchase, supported by their shopping preference.
Instagram debuted its Shopping in Reels feature in December to let sellers and influencers tag their products for sale within their Reels. The social networking service which is widely known for its unique photo-sharing features announced that the app is pivoting away from being primarily a photo-sharing app in a move to expand its product offerings.
Adam Mosseri, head of Instagram dsclosed that the changes will focus on four key areas: Creators, Video, Shopping and Messaging. “The COVID-19 pandemic accelerated the shift of commerce from offline to online by a number of years, and we’re trying to lean into that trend through our features,” Mosseri said in July.
Google
Alphabet-owned Google announced new ecommerce tools, including an improved shopify integration, and image discovery. The outlined steps in boosting its eCommerce activity includes an enhanced partnership with Shopify and updated product search tools based on screenshots and images.
The new collaboration with Shopify will enable merchants to become discoverable to high-intent consumers across Google Search, Shopping, YouTube, Google Images and more.
Snapchat
Snap Inc. and Verishop announced the launch of Verishop Mini: a curated shopping experience that lives exclusively within Snapchat, which allows users to discover and shop the latest in fashion and beauty products all without leaving the app.
Snap Inc is investing in augmented reality technology designed to help users virtually try on items like watches, jewelry and other apparel to cut down on returns, a major problem faced by online retailers. Snapchat users can take a photo of a friend’s outfit with the app and find similar looks or product recommendations.
Twitter its new ecommerce feature, Shop Module which offers brands, businesses and other retailers the ability to showcase their products to Twitter users directly on the business’ profile.
Users will then be able to scroll through a carousel of product images in the module and tap through on a product they’re interested in purchasing. This opens up the business’s website inside the Twitter app itself, where the customer can learn more about the product in question and opt to make a purchase.
YouTube
In 2020, Google’s Youtube started asking creators to use YouTube software to tag and track products featured in their videos.
The video and Ad sharing company revealed that the company is in the process of testing a new way for people to easily discover and purchase products featured in YouTube videos. Creators in this pilot can add certain products to their videos. Viewers can then see a list of featured products by clicking the shopping bag icon on the bottom left corner of the video.”
“From there, viewers can explore each product’s page to see more information, related videos, and purchase options for that product. We are currently piloting this feature with a limited number of creators. It is visible to users in the US on iOS, Android, and desktop,” YouTube stated.
Netflix
Entertainment giant Netflix also recently announced it was venturing into the commerce space with the launch of its own standalone shop front, Netflix.shop in partnership with Shopify.
Netflix.shop will sell exclusive, limited editions of carefully selected, high-quality apparel and lifestyle products tied to its shows and brands on a regular basis.
While the company already has licensing deals for a broad range of products based on its original programming, sold through mainstream retailers such as Target, Walmart, Amazon, H&M, Sephora and other retailers, Netflix.shop will now bypass these channels to go direct to consumers.
TikTok
Popular short-form video app TikTok is testing live-streamed shopping with select brands in the UK, allowing viewers purchase clothes as an influencer models the item in real time during a live video. TikTok has been working on its eCommerce offerings since 2019 when it began testing basic eCommerce links within clips. It’s since continued to develop its on-platform selling tools, with live-stream shopping events and an integration with Shopify to display product ads in-stream.
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