B2C commerce is transitioning to social commerce

Social commerce encourages consumers to discover and purchase products through social media channels. Research estimates that social commerce will grow at a compound annual growth rate (CAGR) of 31.4% between 2020 and 2027 , and the global social commerce market is expected to reach US$604.5 billion in 2027 .

According to research by customer experience platform Emplifi , as competition in the retail and direct sales markets for the next generation of consumers becomes increasingly fierce , social commerce has become an important strategic channel for many brands to expand their revenue sources and develop new audiences .

The study reveals insights from more than 220 of the world’s leading e-commerce companies on their social commerce strategies , early pilots, and investment plans , as well as the challenges faced by early pioneers who are turning to social commerce platforms to grow revenue and improve customer experience .

According to research , more than 70% of social commerce companies currently do not pay enough attention to customer engagement and fail to truly cultivate customer relationships throughout the social shopping process , which will be detrimental to the long-term development of their social commerce .

This also shows that although brands are beginning to consider social commerce, many brands still have a lot of room for improvement in the social commerce consumption process . If they don’t pay attention, e-commerce companies are likely to fall behind in the fiercely competitive market.

It is reported that more than 80% of the surveyed companies are investing in two or more social stores, and more than one-third of the companies are currently using four or more social store platforms. At the same time , 86% of the respondents said that their investment in social commerce platforms will pay off within one year .

In this regard, Emplifi CEO Mark Zablan said that consumer demand has prompted companies to turn to online platforms , and now many B2C companies are developing social commerce platforms. B2C brands are transforming social media into a commercial means from discovery to shopping to serving and caring for customers .

However, while companies see huge benefits in the field of social commerce , they should also realize the importance of building a brand image among a growing audience . Converting audiences into loyal long-term customers is the ultimate means of profitability for companies .

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