The Future of Social Commerce

Social networking has been growing exponentially and throughout that speedy process newer and newer platforms have been evolving and making a name for themselves in small niches. Marketers have realized there is money in this evolution and they are targeting it more than ever. As eCommerce merchants we need to embrace the growing change and the need to be “informed” and target our audience through the free spaces that exist like Twitter, Facebook and LinkedIn. The only investment needed is time and resources as you continue to grow.

Social Commerce is defined as the relationship and fusion of eCommerce and social media together to help buyers and sellers make better purchasing decisions online. This combination is the next generation of interaction between buyers and sellers.

Take a look at these studies and see for yourself what respondents had to say.  And then ask yourself if you feel the same way.

According to Bazaarvoice:

“81 percent of respondents said they’d received advice from friends and followers relating to a product purchase through a social site; 74 percent of those who received such advice found it to be influential in their decision. 90% of consumers online trust recommendations from people they know…

Friends still play an important role in influencing consumers; 83 percent of online shoppers said they are interested in sharing information about their purchases with people they know, while 74 percent are influenced by the opinions of others in their decision to buy the product in the first place…

Users put great trust in their social networks…respondents said they considered information shared on their networks when making a decision…

Facebook, blogs, Twitter and customer reviews are considered the most effective tactics for mobilizing consumers to talk up products online…

Recommendations from family and friends trump all other consumer touch points when it comes to influencing purchases …Consumers trust friends above experts when it comes to product recommendation”

Users are finding the value in sharing online. They feel safer and they can trust that their friends can help them make better buying decisions. Helping a friend and/or follower make a purchase online is one of the best ways to build advocacy online and throughout your social networks. Try sharing one of your listings with your Facebook friends or Twitter followers and watch the interactions that happen. People are interested in what you are buying and selling and if they need it they are going to feel more comfortable buying it from you. What’s even more powerful is sharing a purchase you made with friends, pointing them in the right direction for the next purchase they may make online.

People love to share themselves and share their experiences with those who care to listen. It is human nature. In the eCommerce space buyers want to feel comfortable buying from sellers and sellers want to feel confident that they are targeting qualified buyers who want what they have to sell. Being uncomfortable has been one of the most important inhibitors that have existed over the last 10 years in the e-commerce space.

TEST: Ask a friend online or follower for some advice on a purchase or a product and see how they respond. Check and see who else responds too.

Just take a look at the graph depiction below on advertising. An overwhelming amount of the respondents trust recommendations from people they know.

About the author: Fredrick Nijm is the co-founder of Addoway, a free social marketplace that helps you buy and sell with your   friends and the people they know.

Addoway helps online merchants utilize social commerce to grow their online business, while providing shoppers with great deals from people they trust. Addoway accomplishes this by providing merchants with a unique web store builder and social marketplace where shoppers can utilize their social graph to identify trustworthy merchants to buy from.