By Ananya Ranjit

After toying with the idea of social media-based commerce since as far back as 2007, Facebook finally doubled down, with its launch of ‘Facebook Shops’ this past year.

Preceded by a series of not-so-successful endeavours in the e-commerce arena (yes, I’m looking at you, Facebook Gifts), the company finally seems to have overcome its white whale. Likewise, cousin Instagram has also been testing the waters since 2017, with updates such as a personalised shopping section in the Explore tab, along with shopping bag stickers on Stories that allowed users to click through items promoted by their favourite influencers.  

Now, the two platforms are working in tandem, which gives the recent launch of Facebook Shops a lot more gravitas than its previous attempts. Incorporating Instagram within this portfolio has resulted in the establishment of a full-fledged category of what is now called ‘social commerce’; that proved to be a more consolidated and intentional effort than introducing an e-commerce extension to a social networking site. 

Besides, the timing was perfect. The pandemic had a devastating impact on businesses around the world, with small businesses getting the worst of it. In the UK alone, an online survey of SMEs (Small and Medium Enterprises) revealed that 80% of respondents had experienced a revenue decline in May 2020 due to the coronavirus lockdown.

With stores and restaurants closed, several small businesses were seen going online for the first time, and such “expanded e-commerce” has the potential to rebuild the economy amidst the pandemic, claimed CEO Mark Zuckerberg in a live stream, speaking about Facebook’s plunge into e-commerce. 

Although social commerce is an emerging phenomenon, it has the potential to eclipse e-commerce as we know it. Even before the conception of these ideas, almost all direct-to-consumer (DTC) businesses had been running ads on these beloved social media platforms.

Brands, therefore, have been an inherent feature throughout users’ browsing experience, stimulating passive desires long before functional needs arise. Most of these ads tended to be direct response ads that led traffic towards external channels such as Amazon or Etsy.

Now, with social commerce and the ability to buy natively through these social media platforms, the erstwhile fragmented journey from perusal to purchase is radically shortened.

While customers benefit from the elimination of obstacles such as web sign-in or app downloads, brands overcome issues such as abandoned carts. Based on social networking sites (emphasis on ‘networking’), social commerce involves equal parts product promotion and fostering good relationships. This can be with other business owners, influencers catering to your target audience, clients, and so on.

While this may seem like an additional step, it holds the possibility of creating a more loyal, close-knit clientele than traditional commerce ever could. Likewise, connecting with businesses through two-way communication may reassure customers that their money is going towards a legitimate business and they aren’t being deceived.  

This is just the start. With e-commerce spending expected to hit the trillion-dollar mark in 2022, it’s no surprise that other social media platforms have started accommodating in-app shopping. Gen Z’s favourite platform, TikTok is planning an enormous expansion into e-commerce, rolling out updates that will allow influencers to share links to their favourite products (even without a formal sponsorship) and earn a commission on any sales. There is also the possibility of a feature that allows brands to showcase product catalogues on the viral video app, in addition to Facebook’s tried and tested ‘Live Shopping’ feature that will be emulated.

Even Snapchat confirmed that they are working towards the creation of a Creator Marketplace that will allow brands to connect with celebrities and influencers to create product-focused augmented reality for users. In addition, the company recently acquired Screenshop, an app that identifies products in posts and refers users to the retailers that sell them. They have also partnered with Fit Analytics, a footwear and apparel sizing brand that boasts connections with around 18,000 retailers worldwide.

Evidently, social media is the future of shopping. Brands— both SMEs and larger companies—  are quickly embracing the benefits of the online medium, thus increasing competition among business owners who are vying for audience attention. Marketing on these platforms is quite different from traditional marketing and therefore requires new, innovative strategies that cater to the style of the app. Luckily, Facebook and Instagram have already equipped us with several tools to aid the process. 

In May 2021, Facebook introduced Live shopping Fridays, which “combines the fun of live video with the convenience of online shopping”. They had some of the biggest brands including Abercrombie and Fitch, Bobbi Brown and Clinique come together for a showcase of products, tips, and demos, which gave them a chance at new, innovative content and an opportunity to interact with potential customers thus fostering a closer relationship between the two.

While Facebook only included established, large-scale companies for this endeavour, SMEs can use the Livestream feature on Facebook and Instagram alike to increase brand awareness and create real engagement, which can help build trust towards the brand.

Instagram Reels are yet another underrated tool to help businesses gain traction. A relatively recent addition to the Instagram sphere, the bottomless nature of these has the capacity to keep users hooked for hours. Further, the limit for these is 30 seconds, which allows companies to share bite-sized information and showcase the personality of the brand, which may be a key factor in creating a loyal customer base, thus driving sales. 

Within the era of social media itself, e-commerce and online shopping have witnessed several dramatic changes. From merely running direct response ads, social media platforms are steadily adopting other aspects of the shopping experience, including virtually trying on accessories through augmented reality.

Such developments, coupled with a homebody attitude instilled in us after a year of facing a global pandemic, raises important questions about what a post-pandemic shopping experience will look like. Will we be quick to reclaim our freedom or will the constant paranoia of what has been, keep us wary and thus reliant on social commerce?