Social media platforms allow businesses to sell products directly to their customers. Social commerce empowers brands by giving their customers an easy and powerful way to purchase desired products without having to transfer to another link. Every retailer should keep in mind the Social Commerce Trend as a key business strategy. Many questions might be asked about the 2022 social commerce trends. We have the answers. Here are the top social commerce trends for this year and beyond. Let's explore;
Did you know that 41% of customers shop on a daily basis or weekly with smartphones? This is compared to just 12% five years ago.
Has There Been A Dramatic Shift in How We Shop, Especially in The Past Few Years?
Yes. Yes. Smartphone shopping is at an all-time high. Social commerce is experiencing a significant boom. Although the COVID-19 pandemic caused massive damage to lives and livelihoods, it also taught many valuable lessons to people like keeping social distance and staying away from crowded areas. This, in turn, encouraged people to adopt digital platforms to help them with their daily tasks. Take this example:
- They receive their groceries delivered to their home each day
- They can buy the products they want without ever leaving their home.
Social commerce is one part of these digital platforms. People don't need to download shopping apps and can instead buy items while browsing Facebook or other social media channels. Businesses can take advantage of social commerce market trends by creating effective strategies.
We have listed some of the most popular social commerce trends for 2022, which are especially appealing to entrepreneurs and startups who want to see their businesses thrive without having to invest in dedicated eCommerce apps.
What Made Social Commerce a Hot Topic in Business?
People are becoming more tech-savvy and looking for services that make their lives easier, more convenient, and more comfortable. Social media is enabling all of this, which has led to social commerce flourishing across industries. After receiving feedback from others, people using social commerce platforms could purchase their favorite products. It is perceived as a safer way to shop that will save them time and money.
Trends in Social Commerce from a Market Perspective
- In 2020, social commerce generated revenue of approximately $475 billion
- The figure is expected to reach $585 billion in 2021.
- From 2021 to 2028, the revenue growth rate is expected at 28.4%.
- The record-breaking 68% increase in social commerce usage was achieved during COVID-19.
The world of online shopping is expected to continue changing in 2022. Social commerce will play an important role. We have created the Social Commerce 2022 Trends to help you reshape your business to satisfy your customers' needs. Keep watching! Your success will be supported by the best social commerce ideas.
What’s Social Commerce?
Social commerce refers to the purchase and sale of products or services through social media platforms. Not only are social media platforms such as Facebook, Instagram, Pinterest, and others great for branding, but they can also be a great way to sell products through effective social commerce marketing strategies. Social commerce can also be used to sell products and services via social media that are linked to an eCommerce site.
Examples of Social Commerce Platforms
These are just a few of the most popular social commerce platforms.
- Shop on Facebook
- Instagram Shops
- Pinterest Shopping
- YouTube Shopping
- Snapchat Filters & Screenshop
Why Social Commerce?
It's hard to overstate the importance of social commerce. Social commerce is dependent on location because it uses social proof to its advantage. It also offers the benefit of influencer marketing where you can reach influencers to promote products on social media.
Let’s Take A Closer Look at The Many Benefits of Social Commerce.
- Social commerce is an emerging trend.
- It allows for precise audience targeting
- It increases brand engagement and buyer engagement.
- Sales can be boosted by this product
- It makes shopping easy and frictionless
What is The Difference Between eCommerce and Social Commerce?
There is little to no difference between the two types of online commerce, social and e-commerce. They are both very similar. Social commerce can be considered part of e-commerce. But there is a slight difference--eCommerce happens using a website on your online store; on the other hand, social commerce takes place on social media.
Sometimes, you can expand the definition of "social commerce" so that it includes all sales made via social media. Social media advertising can be used to make sales, which will fall under the umbrella of "Social Commerce". Social Commerce will also be applied to ads that include a link to your online shop and customers who follow it.
Trends in Social Commerce 2022
Did you know that the US market for social commerce will reach $45.74 billion by 2022?
Social commerce will become an important driver of business growth as people, particularly Generation Z and Generation Alpha, become more tech-savvy. It will surpass traditional commerce within the next few years. People love to purchase things that inspire them. According to the data, social commerce is making a lot in the US market.
Accenture reports that social commerce will grow to $1.2 trillion by 2025. This is more than twice the market size of 2021, which was $492 billion.
We have now discussed important aspects of social business. Let's get to the heart of " Social Commerce Trends 2022.
- Instagram: Visual Shopfronts
- Frustrations experiences can increase loyalty.
- Enhances Customer Experience with 5G Connectivity
- Digital avatars in the fashion industry
- Brand reach is boosted by micro-influencers
- As a marketing strategy, user-generated content works
- Voice Technology and Conversational Shopping
- Low-Priced Products Increase Sales
- Use of NFTs (nonfungible tokens).
- Augmentation in AI, ML and AR
Let's take a look at each one.
Instagram: Visual Shopfronts
Generation Alpha and Gen Z are trying to find things they love, which is why many users have started to do this. Instagram created Visual Shopfronts that allow users to buy products directly from photos and videos, without having to leave space. They don't need to be redirected to another app in order to purchase the product.
They can tap on tagged products to explore descriptions while they are exploring new reels, images, or videos. You can even purchase products right from this page.
Delivers a Smooth Shopping Experience, Branding, and Better Loyalty
People are used to quick solutions and won't tolerate any inconvenience in this age of technology. Brands must offer seamless shopping experiences to their customers. A quick and easy experience is key to trust, branding, sales, and brand recognition.
Customers are more likely to be frustrated by brands that use outdated and complex business models, with complicated buyer journeys. A business that provides its customers with a seamless and frictionless experience across multiple platforms is more likely to increase its retention rate through an optimized acquisition.
You can make your customers' shopping experience seamless by analyzing their experience maps and identifying the problems. The goal is to simplify the process by removing unnecessary steps and making it easier for customers to make purchases. Continue to improve the customer experience until you achieve what they want.
5G Connectivity Offers a Faster, More Reliable Shopping Experience
According to eMarketer, AR users will grow in the U.S. by 101.6 million per year in 2023, compared to 83.7 million in 2020. It's massive, isn't it?
Brands will be able to offer seamless mixed reality experiences across connected devices with global 5G wireless connectivity. Businesses can make their customers' experience more enjoyable by doing this.
Brands can only use 5G to provide customers with an immersive experience. They can surpass their brands if they do this. All they have to do is leverage the 5G benefits. They can exceed their customers' expectations by optimizing social commerce experiences.
Digital Avatars are the Game Changer
One of the most important social commerce trends for 2022 will be the use of digital avatars in fashion. The brand ambassadors for jewelry and clothing will continue to be the main players. However, digital avatars will still be the main models of digital fashion runways.
Brands can use digital avatars for a variety of purposes such as promoting launches, layering digital clothes, and other uses. Customers have many options and can see how clothes fit when they shop online. Customers can make immediate purchases using this process.
The rapid growth of the Metaverse will also accelerate the use of digital avatars by 2022. Fashion retailers will soon be able to offer digital clothing made by these avatars through this trend.
Micro-Influencers will be Credible Marketing Sources
Collaboration with micro-influencers, although it's not a new trend in this market, is still relevant for 2022. Micro-influencers can help small businesses reach their target audience by allowing them to balance their ad budget. Micro-influencers offer brands the best way to reach large audiences with a reduced budget. They are also cost-effective and highly productive.
Micro-influencers can be more affordable than large influencers with hundreds of thousands of followers. These micro-influencers can collaborate with brands on a budget that is affordable for all sizes of businesses. Micro-influencers are able to target a targeted audience, which helps simplify segmentation and simplifies the targeting of ads. They are also more transparent and reliable about paid collaboration than big influencers.
Micro-influencers, as you can see, are the best way to help brands convert. They are transparent, approachable, and authentic, as opposed to large influencers with a large following.
User-Generated Content will Boost Purchases
Marketing strategy is still dominated by user-generated content. Social media platforms are all about communication.
Brands have found user-generated content to be very beneficial and it will continue to do so in the future. This allows your customers to feel that they are part of the brand and not just targeted customers. This increases the reach of social media campaigns and ensures a higher ROI.
The user-generated content can also alter people's altitude. Because the UGC was created by people outside, it is trustworthy.
Voice Technology, Conversational Shopping
Conversational shopping and voice technology are two of the most popular social commerce trends in 2022. Voice search is more convenient than typing for Gen Z and millennials. Voice search users are more likely than others to purchase the same product using the same technology.
Statista reports that voice-assistant searches will surpass 4.6 billion by 2023. It's a significant increase. This is more than a quadruple growth in two years. This is a market share that brands don't want to miss.
Both Android and Apple integrate voice technology into their phones. These voice assistants are continually improving with each optimization. It is common to have standalone devices such as Google Home, Amazon Alexa, and others. This is the perfect time to optimize your brand for voice search.
Optimize Sales
As in the past, lower-priced goods will continue to be more popular than expensive products. This could be due to a lack of trust as customers are less likely than ever to purchase expensive goods through social media. They are more inclined to buy cheaper products through social commerce. For big-ticket items, they will be more likely to research and visit an actual store to reduce the risk.
Social commerce is still relatively new and can feel risky for those who aren’t used to online shopping. A person might buy $30 worth of stuff through Social Commerce, but it would be risky to purchase jewelry made from gold or diamonds. Consider these aspects when placing your lower-priced items in front of your customers to increase engagement.
Use NFTs (Non-Fungible Tokens)
The popularity of Metaverse has increased the demand for NFTs. Facebook's meta rebranding has also helped to boost its growth. NFTs are a social commerce trend that will impact creators, artists, and small businesses, and will continue to be so in 2022.
Do your research to find out if NFTs are a good fit for your brand. Many digital creators and artists see it as an innovative way to get paid for their work. NFTs have been criticized for their inability to regulate and volatile nature, even though it has an environmental impact.
Businesses involved in social commerce and eCommerce need to examine threads barely in order to understand how NFTs can benefit them in both the emerging creative economy and the digital ecosystem. NFTs could become creators and power collectors. This is similar to a new type of social commerce.
Increased usage of AI, ML, and AR
This is the last social commerce trend for 2022. While there are many others, these trends have the potential to help your business thrive. AI (Artificial Intelligence), AR (Augmented Reality) and ML (Machine Learning) are emerging technologies that allow brands to raise their social commerce game. Chatbots can now be used to convert potential buyers.
Instagram is the best place to see AR on social media. Users can change and modify their surroundings. TikTok offers almost the same assistance for your videos. Businesses have also used AR to allow you to decorate your space with new items by using a camera from your phone.
Final Thoughts
The global economy was in a difficult situation in early 2020. But things started to change quickly. Brands began to recognize the growing popularity of social commerce in 2021 and took every step possible to improve their eCommerce store. Although social commerce is new and difficult to use for those not used to shopping online, these trends will help you optimize your social media marketing strategies in 2022.