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Surpassing the Competition: Embracing the Next Wave of eCommerce Growth

By Reagan Cooper– Digital Marketing Manager & Recruiter @ eCommerce Placement

In the midst of unprecedented global lockdowns, eCommerce experienced an extraordinary surge. Online sales skyrocketed by an impressive 33.6%, as consumers worldwide flocked to digital platforms for their daily necessities and sought solace in retail therapy. From exploring new hobbies to perfecting homemade bread and indulging in the latest skincare trends, people embraced a new way of life. However, barely a year later, the growth rate began to wane, with a decrease to 15.5%, followed by a year of similar growth in 2022.(1)

While online shopping continues to flourish, YoY growth has witnessed a decline. It’s clear that the modern consumer craves more than a simple transaction—they seek an immersive, personalized, and engaging shopping experience. Data reveals that omnichannel campaigns, offering a multi-faceted approach, boast a staggering 287% higher purchase rate than single-channel campaigns. This demonstrates the importance of adopting strategies that cater to the evolving preferences of consumers.(1)

So, how can businesses position themselves competitively in this consumer-centric market? The answer lies in listening to the message shoppers are sending through their purchasing patterns—they highly value in-depth product knowledge before making a decision.

Enter Social Commerce. According to Griffin LaFleur from Swing Education, Social Commerce is a rapidly growing branch of eCommerce that leverages social networks and digital media to facilitate transactions between businesses and customers.(2) In the United States alone, social shopping is projected to generate approximately $68 billion year over year by 2026.(3)

Let’s dive deeper into the reasons behind this phenomenon and explore how you can harness its potential to drive success.

Live Streams:

One captivating form of Social Commerce is Social Media Live Streams (SMLS). Originating in China, SMLS has rapidly become a revenue-generating powerhouse, with a staggering $500 billion generated in 2022 alone. Experts predict that SMLS will soon emerge as the leading eCommerce sales channel for this region.(2)

What’s fascinating is that nearly 47% of livestream shoppers are part of Gen-Z. Social shopping caters to this emerging market by tapping into their affinity for influencers and creators. Watching trusted individuals review products in real-time while having the opportunity to ask questions has resulted in an impressive average conversion rate of 30%.(4)

 

Now, let’s explore some examples.

  • In 2020, Tommy Hilfiger captured the attention of millions with a live stream shopping experience that showcased their spring line in China. With a colossal audience of 14 million, they sold 1,300 products in just two minutes. Sounds unbelievable, doesn’t it?

 

  • More recently, in 2022, Fresh Market made waves on Firework. With a 133% increase in conversion, 115% increase in session length, and a 23% increase in click-through rates- it’s hard to deny the impact.(4)

 

  • In April 2022, Maybelline launched a three-week live campaign on TikTok in Indonesia. Users stumbled upon an ad on their For You page demonstrating the effectiveness of a lip product. From there, a simple link directed them to a livestream where they could interact with creators, ask questions, and view products in real-time—all within the TikTok app. TikTok reports that Maybelline’s efforts led to over 4,000 purchases, a staggering 2.6 million views, and an impressive 3.8X return on ad spend.(5)

 

Other prominent platforms, such as Amazon, Walmart, and even YouTube, have also embraced the live shopping trend. YouTube, the reigning champion of live streams in the United States, entered the social shopping arena in 2021. YouTube Live offers a highly interactive platform where users are encouraged to ask questions and make comments in real-time. In 2022, YouTube partnered with Shopify to ensure a seamless onsite checkout experience for customers.

 

 

General Social Shopping:

However, Social Commerce is not limited to live stream shopping. Leading retailers and tech giants are integrating social shopping into their eCommerce models, prioritizing customer preferences in innovative ways and ushering in a new era of personalized experiences.

So, who is riding this wave of change?

TikTok Shop – The Mack-Daddy of Integrations:
With TikTok Shop, millions of users across the country can access live shopping and short-form videos, both linked to a store page, without ever leaving the platform they love. It’s an all-inclusive, in-app experience that offers a wealth of possibilities.

From a business perspective, selling through TikTok holds significant advantages. Apart from its massive user base, TikTok has perfected the art of personalized algorithms. Rest assured that your shop will attract highly qualified leads who are genuinely interested in your product.(8)

 

Amazon Inspire:

Introduced to a select few customers in December 2022 and recently made available to the general public in the US, Amazon Inspire exemplifies Amazon’s commitment to incorporating features aligned with current social media trends. Emulating TikTok’s vertical, short-form video format, Inspire offers a user interface reminiscent of its popular counterpart.

Within Amazon Inspire, users can seamlessly scroll through captivating videos and interactions. Products featured in the videos are conveniently tagged at the bottom of the screen, allowing users to tap and explore further details or add items to their cart.

Although you cannot voluntarily list your products on Amazon Inspire, being featured provides invaluable exposure at no cost. To be eligible, you must be a brand-registered seller. Amazon curates content based on your brand page posts, emphasizing the need to optimize your content for this platform.(6)

 

Walmart Creator– The All Inclusive Platform:

Embracing an inclusive and empowering mindset, Walmart’s “anyone can be a creator” initiative opens doors for aspiring “nano-influencers” from various social media platforms. By joining this program, users gain access to a wealth of free resources and educational tools to monetize their accounts.

While the beta program for Walmart Creator was launched in December 2022, the full version has recently been rolled out. With limited data available regarding the impact on brands with products on Walmart’s shelves, there is ample room for innovation in this space.(7)

As evident, social commerce is revolutionizing the eCommerce industry this year. Through the use of AI and other technological advancements, we can anticipate significant developments in these features throughout 2023 and beyond.

 

The only question is: How will you leverage these platforms to pave the way in a new era focused on highly personalized shopping experiences?

Here at eP, we closely monitor these trends to keep you informed. Don’t miss out on the latest cutting-edge developments within the eCommerce industry—subscribe to our newsletter today!

 

Citations:
  1.  M. I. Ecommerce Trends and Statistics 2022: A full report [Internet]. Software Development Company. 2022 [cited 2023 Jun 5]. Available from: https://qarea.com/blog/ecommerce-trend-report-the-state-of-the-industry-in-2022
  2. LaFleur G. What is Social Commerce? [Internet]. Customer Experience. TechTarget; 2023 [cited 2023 Jun 5]. Available from: https://www.techtarget.com/searchcustomerexperience/definition/social-commerce#:~:text=Social%20commerce%20is%20a%20rapidly,recommendations%2C%20transactions%20and%20loyalty%20programs.
  3. Brophy M, Hodge B. 15 Livestream Selling Statistics to Know in 2023 [Internet]. Fit Small Business. Fit Small Business; 2023 [cited 2023 Jun 5]. Available from: https://fitsmallbusiness.com/livestream-shopping-statistics/
  4. Siu A. How Agencies are Testing Live Shopping and Seeing Potential in Accelerating Conversions [Internet]. Digiday. 2023 [cited 2023 Jun 5]. Available from: https://digiday.com/media-buying/how-agencies-are-testing-live-shopping-while-seeing-potential-in-accelerating-conversions/
  5. Tiktok for Business Case Study: Maybelline: TikTok for business case study [Internet]. TikTok For Business. TikTok For Business; 2022 [cited 2023 Jun 5]. Available from: https://www.tiktok.com/business/en-US/inspiration/maybelline-shopping-ads
  6. Ellis M. How to get your products on Amazon Inspire [Internet]. eComEngine® – Powerful Amazon Seller Tools. eComEngine, LLC; 2023 [cited 2023 Jun 5]. Available from: https://www.ecomengine.com/blog/amazon-inspire
  7. Walmart creator [Internet]. Walmart Creator. [cited 2023 Jun 5]. Available from: https://www.walmartcreator.com/
  8. Tiktok Shop: Buy, sell and discover on TikTok [Internet]. TikTok Shop | buy, sell and discover on TikTok. [cited 2023 Jun 5]. Available from: https://shop.tiktok.com/business/en