In June, Facebook announced its plans to launch a cryptocurrency called Libra in 2020. Consumers will be able to make purchases or send money with little to no fees and store it in Facebook’s digital wallet Calibra.
Calibra will be built into Facebook, Messenger, and WhatsApp. Of course, Facebook received a fair amount of regulatory scrutiny regarding Libra. The company will also have to address data privacy issues, which isn’t really their strong suit.
But the implications of Libra are clear. Social media is becoming more than just an advertising tool. It’s creating global e-commerce opportunities and could become one of the most popular ways for users to make purchases.
What is Social Commerce?
There are really only two things you need you to make an online sale. You need a product or service that solves a problem for your customer, and you need to remove any friction from the buying process.
Social commerce does just that. Instead of advertising your products or services on Facebook and then sending a customer to your website, they can make the sale directly within the app.
Facebook has over two billion monthly active users and 30% of consumers are willing to make a purchase on social media networks. If the majority of your customers are on social media and they want to make purchases on these sites, why add the extra step of redirecting them to your website?
Taking advantage of this technology creates a better experience for your customers and helps you increase your revenue. I call that a win-win.
4 Social Commerce Tools You Can Use
Wondering where to get started when it comes to social commerce? Here are four tools you can get started with:
- Facebook: Facebook spent years developing its e-commerce features. By adding a shop section to your business page, you can display the products and services you’re selling. And the “buy now” button lets users make purchases on the Facebook app and in Messenger.
- Instagram: This year, Instagram launched shoppable posts. This makes it easy for businesses to tag up to five photos per single-image post. Shoppers can click on these products and purchase them directly within the Instagram app.
- Pinterest: Pinterest’s buyable pins let customers purchase products within the app. And businesses can display up-to-date product and pricing information on their pins.
- WeChat: WeChat is a Chinese social media and messaging app created by Tencent. It has over a billion active monthly users, so this reach alone makes it worth considering. In addition to messaging, users can pay bills, send money to friends or family, and more.
Social commerce is more proof of how consumer behavior is changing and the gradual shift to cashless payments that are happening. The businesses that will grab the biggest market share will the ones that can keep up with changing customer expectations.
Social commerce platforms will continue to change and improve over the years. Make sure you’re staying in front of this trend by incorporating features that make it easier for your customers to do business with you.
To your success,