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Everything you need to know about Social Commerce and Retail Strategy

Social commerce and retail strategy capabilities are becoming more prevalent across numerous platforms, opening the new potential for small and large enterprises. The post-pandemic era has put a further burden on traditional enterprises. Furthermore, CEOs are all focused on digital transformation. How will you make use of this new income potential strategically? This post will offer you a complete description of social commerce - what it is, its relevance, how it works, and, most importantly, how it would work for your business.

What is Social Commerce?

It is the direct purchase and sale of products or services through social media networks. The strategy goes beyond the typical discovery process on social media and encourages customers to purchase without leaving their favourite applications. According to the Social Media Investment Report, social commerce accounts for a growing share of a company's marketing-driven income. Eight out of ten companies intend to sell their products or services through social media within the next three years.

In 2020, Facebook, Pinterest, and Instagram will release updated social commerce technologies to assist companies in streamlining online buying experiences during the pandemic. These capabilities produce new digital stores that are discovered organically or promoted through paid advertising.

Why is Social Commerce important?

By being where your consumers spend their time online, social commerce provides a convenient purchase route. Social commerce makes it simple for buyers to find your items and complete the transaction, eliminating friction that leads to purchase abandonment. In addition, there is no moving from platform to website - from product discovery to buy. Everything takes place on the same platform. Retailers need to map their retail strategy around this.

How do Social Commerce and retail strategy work?

As the epidemic accelerates online purchasing, social platforms are exploring and creating commerce capabilities. Businesses can set up a store on the relatively new Facebook shop, which opened last year, and sell on Facebook and Instagram. It might be the most straightforward approach to reach out to a new audience that utilises such platforms. You would want to develop an organic presence on social media sites so that potential clients might discover the items naturally. Customers will constantly gravitate toward their hobbies and what excites them.

Paid advertising is another excellent technique to encourage potential clients to find your brand and products and finally buy them on the platforms or your website. Paid advertising allows you to target a specific audience based on demographics and interests. Retailers must work with the Commerce Manager to set up a Facebook Shop. One of the benefits of Facebook Shops is the ability to specify where buyers should finalise their purchases. It may be your website, direct messaging, or Facebook's checkout tool. Retail strategy combined with social commerce can help businesses skyrocket their revenues.

Social commerce and Retail strategy for brands

No single marketing technique will work for every brand—a social shopping experience for athleisure will look quite different from an electronics campaign. However, to compete successfully in the social commerce market, all brands can use influencers, consumer calls to action, and user-generated content. Calls to action such as "swipe up to purchase" or "shop link in bio" have grown immensely popular, encouraging social media users to buy the products or services they see promoted in their newsfeeds.

User-generated content is becoming increasingly important for marketing, with TikTok videos and hashtag challenges delivering value to businesses. This viewer-friendly material, along with suitable call-to-action actions, has been a windfall for both advertisers and marketers. In addition to these organic opportunities, companies should consider influencers while developing their social commerce strategy.

Instagram provided some influencers with the option to produce shoppable posts using Checkout on Instagram in 2019, while Snapchat granted select top-tier influencers a "shop" button. TikTok has also entered the social commerce business, announcing a collaboration with Shopify in November 2020.

According to a GlobalWebIndex poll conducted in September 2020, 70% of internet users in the United States who regularly watched influencer-led livestreams stated they were inclined to purchase items suggested by such influencers. Overall, we predict that 67.9% of US marketers from organisations with 100 or more workers will utilise influencer marketing this year.


Social commerce and an effective retail strategy for it are critical components of the total shopping consumer experience. In the effortless economy, it's one method for customers to find things while spending time on social platforms. So to expand your business, go where your clients are and include social commerce into your selling approach.

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