Social e-commerce is outstanding, or subverting the business model of traditional e-commerce sellers

With the development of e-commerce transactions on Facebook, Instagram, Pinterest and other platforms, to a certain extent, traditional e-commerce has been affected by the development of social e-commerce. Recently, Instagram was exposed that the news of building an independent shopping app came out. The development of social e-commerce seems to usher in a new round of attention, and its remarks on subverting traditional e-commerce are also continuing to rise.

Social e-commerce is outstanding, and sellers on traditional e-commerce platforms are beginning to change their business models.

According to one statistics, more than 550 million people use Facebook, and users are able to seamlessly trade on the platform, and traditional e-commerce is beginning to struggle with this trend.

In May of this year, Magisto, based in California, surveyed more than 750 people who sold online through the United States. It hopes to emphasize the situation of traditional e-commerce websites facing the impact of social e-commerce.

Although 75% of respondents have at least one e-commerce account, they are passively used. These passive transactions only meet customer needs, rather than fostering good customer relationships.

And the number of people selling through social media is constantly rising. Only 26% of respondents said they only sell on third-party e-commerce platforms, while 71% said they are using social media sales.

72% of marketers say that if they use a wider range of channels for marketing, they are not limited to creating, uploading, and editing products on traditional e-commerce sites.

This is indeed a big change, indicating that a large number of online sales sellers are gradually becoming more aware that social media is a big boost to online sales!

The gap between social e-commerce and traditional e-commerce is shrinking sharply

Magisto also found that the gap between social e-commerce and traditional e-commerce is rapidly narrowing in 2018. Nearly half of the marketers surveyed said that if the social media platform can provide direct sales, they will start trading directly on the social platform.

48% of online sellers say they are more likely to transfer all their sales to social platforms if conditions permit; 49% of online sellers say they will have more if they use video creation as a marketing tool It may be sold on a traditional e-commerce website.

According to the future development trend, or in combination with their own situation, the supporters of social e-commerce and traditional e-commerce are equally divided.

For most companies, they want to be a one-stop shopping store that combines social media marketing with traditional e-commerce sales.

Social media big data is not being used effectively by retailers

In addition, a recent report shows that big data on social media is not being used effectively by retailers.

The challenges faced by traditional e-commerce websites are difficult to target audiences. They simply let third-party sellers on the e-commerce platform maintain and develop customer relationships through simple sales, and the platform will put customers in the most important position. To a certain extent, it hurts the interests of some sellers.

Social e-commerce may subvert traditional e-commerce

Social media has been out of touch with direct sales, but this is changing a lot. Recently, there is news that Facebook’s Instagram is developing an app for shopping. Previously, Facebook launched a shopping service, but it was limited by e-commerce giants such as Amazon. Facebook shopping service has limited impact, but this time directly launched APP. It is the determination of the original service expansion and the main social e-commerce transaction.

If this news is finally confirmed, this may be the biggest news of online retail e-commerce in the United States, which may cause a certain degree of impact on various home appliance platforms.

Facebook executives revealed that there are currently 25 million corporate brand accounts and 2 million advertiser accounts on Instagram. Another 80% of Instagram users are following at least one corporate brand account.

Facebook launched a shopping app that not only helps to increase sales and revenue for these corporate accounts, but also brings more revenue to Instagram.

Some analysts believe that social e-commerce will become a subversive of traditional e-commerce. It seems that the competitors of the traditional electric commerce website are coming, or they need to improve their comprehensive strength from all aspects to keep up, otherwise they may fall behind in the competition with social e-commerce.

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