Social e-commerce bonus period, this category brings its own traffic

Over the past year, major social platforms have been busy adding social e-commerce features to increase revenue sources and make up for the losses caused by Apple's privacy changes . Companies such as TikTok, YouTube and Amazon have launched live shopping features.

Preliminary data shows that consumers like to interact with celebrities and so -called influencers , but the ultimate goal is to get consumers to click and buy. For example, social influencer Nisrin has attracted 500,000 TikTok followers and can sell up to 10,000 pounds of cosmetics and other products in a live broadcast .

TikTok first launched the live e-commerce function in five Southeast Asian countries and the United Kingdom, and later brought this function to the United States . Recently, Amazon also launched its own similar software Inspire.

It is understood that the revenue from online live broadcasting will help offset the shrinking marketing budget. According to data portal Statista, US social media advertising spending has been growing at an annual rate of about 30%, but will slow to an average of about 12% in the next three years , reaching US$114 billion by 2025.

In contrast, consulting firm McKinsey predicts that social e-commerce sales in the United States will grow by 20% annually to $80 billion during the same period.

It can be seen that it makes sense for major platforms to continue to explore the field of social e-commerce . Since customers can learn more about products through live broadcasts and interactions , the return rate will naturally be reduced , which has troubled many e-commerce sellers .

However, not all products are suitable for this promotion model . For example, cosmetics are more effective than electronic products. On TikTok, a two-hour live broadcast can help a small beauty brand sell what it normally sells in a week on its flagship store .

In addition to TikTok, there are also some platforms that are trying to enter the social e-commerce, and Pinterest is one of them. Pinterest is currently a valuable platform for retailers because it plays a big role in promoting trends and product discovery, which also gives it unique insights into consumers' purchasing intentions.

Pinterest has launched a number of commerce initiatives over the past year , including a shopping API that allows merchants to sync their product catalogs to the platform, improved personalization of search results for users, a hosted checkout feature, and an AR try-on tool for furniture and decor.

These improvements have led more and more businesses to start advertising on Pinterest, directly boosting its third-quarter revenue.

Under the general trend of social e-commerce, sellers can also make arrangements in advance, register and operate their own TikTok merchant account as soon as possible, and try to sell goods after obtaining enough traffic.

Social e-commerce

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