The introduction of the commercialised internet in the 1990’s brought many novelties to commerce as ecommerce, was created. Since then shopping has been truly revolutionised. However, the newest way of advertising and selling products online is known as social commerce. It was created with the emergence of social networks at the beginning of the new millennium.
The term social commerce was coined by Yahoo! In November 2005, and it describes a set of online shopping tools such as pick lists, user ratings, and other content sharing generated by users. The guys behind the concept of social commerce are David Basel and Steve Rubel.
Since then, many companies decided to use social networks as means of advertising and selling, and they even give vouchers and discounts to “online consumers” who use social media networks such as Facebook, Twitter, Instagram, etc. Amazon is a great example of this, as they frequently use social media to promote the latest offers to everyone following them via Facebook. In other words, companies have realized that it is probably the best way of advertising nowadays, as there is an abundance of people who are “online”.
Let’s take a look at some figures which show that social review really increases sales.
- A positive response to a review improves the brand perception for 71% of the shoppers.
- A positive product review can bump up a product’s price by 9.5%.
- The same goes for mobile shoppers, as a positive review can increase the conversion rate by 133%.
In the following infographic you can take a look at many interesting facts which are going to help you realise just how big social commerce really is.