Social Commerce Applications are Fast Gaining Ground!

How important are Social Commerce Platforms?

Social Commerce plays an integral part in the global economic engine. Numerous examples abound, with Pinterest’s ‘Buy Button’, the ‘Tweet a Pizza’ system of Dominos and even ‘Messenger for Business’ from Facebook. There is no doubt that social commerce is alive and well, and the budding relationship between commerce and the social aspect has never been healthier.

The fact of the matter is that most all commerce is a social function. People shop with friends, family and loved ones. And if they’re not shopping with others, they are making purchases for others. People often heed the advice of fellow shoppers, by following the latest trends, shopping habits and social shopping shares. Video sharing, photo sharing and real-time updates are all the rage. The success of social platforms is dependent on their level of engagement with people. And it is that level of engagement that determines the success of social commerce platforms.

However, shoppers don’t enjoy being interrupted while they are enjoying social experiences. By the same token, consumers want to engage with other users while they are planning on making purchases. These social commerce platforms tap into the overall purchase experience and allow for the integration of daily social habits with commercial transactions. The extent to which a social shopping experience gains traction with the social component is dependent on the level of integration that takes place. Timing is everything: the consumers, retailers and social platforms need to sync up for maximum efficacy. Within the next five years it is likely that social media platforms will integrate full-service functionality for shopping. Redirections to external sites will become a thing of the past.

Benefits of Using Social Platforms for Commerce

One of the most glaring annoyances in eCommerce transactions is that of the login and registration process. By using social platforms for online shopping, it is possible to obviate these complexities by allowing for quick and easy logins via social networks like Twitter, Facebook, G+, Pinterest and others. To date, most social networking sites do not associate a user’s payment information and other pertinent credentials with the account.

Social platforms can collect mounds of data, but aggregating that data and making it valuable to companies is the challenge. Since social platforms are not ‘mission critical’ per se, it is imperative that they quickly adapt to achieving this strategic vision. Consumers have derived varying amounts of satisfaction with things like Facebook Connect and Facebook Payments, but there remains a wealth of possibilities in this regard.

Social Commerce: Future Projections

Social commerce will become more widespread in coming years, and the level of personalization will improve. eCommerce and POS systems will be connecting the social experience with the shopping experience in more effective ways. The level of commerce-ready social platforms will likely remain rather limited, with Twitter and Facebook leading the way. The advancement of payments processing technologies and social technologies will move in tandem with shifting consumer expectations.

In order to be successful however, there needs to be an engaged user base which fosters the exchange of ideas, goods and services. The monetization of these transactions is paramount, and this covers mobile, peer-to-peer and app-related purchases. The value added by social commerce will be tremendous, although it is unlikely to supplant existing payment mediums. The capacity of social influence and the power of trust are central to the success of social commerce.