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Have you ever wondered about the booming phenomenon of social commerce?
With the continuous evolution of technology, the way we shop has drastically transformed. Social commerce, a term buzzing across the digital landscape, has sparked curiosity and intrigue among consumers and businesses.
But what exactly sets it apart from traditional e-commerce?
Today, social commerce is revolutionizing how we buy and sell goods or services directly within our favorite social media platforms.
This seamless integration of shopping into our social experiences is reshaping the retail landscape as we know it.
But why all the hype?
Well, the numbers speak for themselves.
Social commerce is projected to grow exponentially, with the global market estimated to skyrocket to a staggering $1.2 trillion to $2 trillion by 2025.
In the United States alone, retail social commerce sales are expected to soar to nearly $80 billion by the same year, showcasing its undeniable significance in e-commerce.
In this blog, we’ll explore the differences between social commerce and traditional e-commerce, exploring how it shapes the landscape of online shopping and consumer behavior.
Let’s dive in and take a look at the following:
Traditional e-commerce refers to the buying and selling of goods or services conducted over the Internet through dedicated online platforms or websites.
It involves transactions facilitated by digital means without physical interaction between buyers and sellers. Some defining characteristics include:
Major players dominate the traditional e-commerce landscape, offering diverse product selections and user-friendly interfaces.
The transactional nature of traditional e-commerce revolves around the exchange of goods or services for monetary value. Key aspects include:
Several traditional e-commerce businesses have achieved notable success by leveraging effective marketing strategies and providing exceptional customer experiences.
Now that we’ve covered the various e-commerce models, let’s delve into the dynamic realm of social commerce.
Social commerce refers to the buying and selling of goods or services directly within social media platforms.
It integrates e-commerce functionalities into social media networks, allowing users to browse, discover, and purchase products without leaving the platform.
Social commerce leverages the social aspects of online interactions, such as user-generated content, social recommendations, and peer-to-peer influence, to facilitate transactions.
This approach transforms social media channels into active shopping destinations where businesses can engage with their audience, showcase products, and drive sales through targeted advertising and personalized recommendations.
The surge in social commerce is driven by several factors, as indicated by the following statistics:
These statistics underscore social commerce’s significant growth, underpinned by escalating user adoption, platform influence, and its burgeoning role in revenue generation.
Facebook stands out as the most popular social platform in social commerce trends through Facebook shops, boasting an estimated 5 million users in the US making purchases on the platform in 2022.
Instagram follows closely behind this, with an estimated 41 million buyers purchasing through the platform through in-app promotion.
TikTok has emerged as another popular option under social commerce trends, with 23.7 million users engaging in purchases on the platform.
Pinterest offers a unique social commerce experience centered around visual discovery and inspiration.
Snapchat has introduced various features to facilitate social commerce and connect users with brands.
Social Commerce: Social commerce integrates social interactions such as likes, comments, and shares into the shopping experience, fostering community engagement and trust.
E-commerce: Traditional e-commerce is typically limited to customer reviews and ratings, with less emphasis on real-time engagement and community building.
Social Commerce: Social media platforms serve as hubs for product discovery, with users stumbling upon products through their feeds, influencer endorsements, and user-generated content.
E-commerce: In e-commerce, product discovery often occurs through search engines, direct website visits, and targeted advertising, with less emphasis on leveraging social networks for discovery.
Social Commerce: Social commerce heavily relies on peer recommendations and user-generated content to influence purchasing decisions, leveraging the power of social proof and personal endorsements.
E-commerce: While e-commerce also utilizes customer reviews, user feedback, and testimonials, the influence of peer recommendations is typically not as central to the shopping experience as it is in social commerce.
Social Commerce: Social commerce platforms offer a seamless shopping experience to their social commerce buyers, allowing them to browse, discover, and purchase products without leaving the social media app.
E-commerce: In e-commerce, the shopping experience often involves navigating through dedicated websites or online stores, with separate checkout processes and payment gateways.
Social Commerce: User-generated content, such as photos, videos, and reviews, seamlessly integrates into the social commerce experience, enhancing product authenticity and credibility.
E-commerce: While e-commerce platforms may feature user-generated content, it is typically displayed separately from the shopping interface and may not play as significant a role in purchasing decisions as in social commerce.
Here is an infographic showing the other differences between social commerce and e-commerce
Now that we’ve explored the key differences between social commerce and e-commerce let’s examine the striking similarities.
Both social commerce and e-commerce facilitate digital transactions, allowing customers to make purchases online using various payment methods such as credit cards, digital wallets, and online payment platforms.
In both models, customers can complete transactions electronically, eliminating the need for physical cash or in-person transactions.
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Both social commerce apps and e-commerce apps provide round-the-clock accessibility to their stores, enabling customers to browse and shop at any time of the day or night through their various shopping features, including weekends and holidays.
This 24/7 availability offers convenience to customers, allowing them to shop at their own pace and schedule without being constrained by traditional store hours.
Both social commerce and e-commerce platforms offer opportunities for international selling through their online store, allowing businesses to reach customers beyond their local or national borders.
Through online platforms, businesses can expand their reach to global markets, leveraging the Internet to connect with customers worldwide and facilitate cross-border transactions.
Both social commerce and e-commerce online stores offer a wide range of products and services to cater to diverse customer needs and preferences.
Customers can find everything from consumer electronics and clothing to digital downloads and professional services, with an extensive selection available at their fingertips.
Both e-commerce and social platforms integrate customer reviews and feedback, providing valuable insights and information to potential buyers.
Customers can read other shoppers’ reviews, ratings, and testimonials to make informed purchasing decisions, contributing to transparency and trust in the online shopping experience.
The interactive nature of social commerce, where users can engage with content, share experiences, and interact with brands and other users, fosters a sense of community and trust, influencing purchasing decisions.
Social commerce platforms offer a seamless shopping experience, allowing users to browse, discover, and purchase products without leaving the social media app. This convenience appeals to consumers looking for hassle-free shopping experiences.
Social commerce platforms use algorithms to analyze user data and behavior, providing personalized product recommendations tailored to individual preferences and interests. This customized approach enhances the shopping experience and increases the likelihood of conversion.
Research from the Baymard Institute reveals that compulsory account setup is a leading cause of e-commerce cart abandonment by 24%.
Social commerce platforms shine by offering a smooth checkout process and cutting cart abandonment rates through features like eliminating mandatory account creation and surprise fees.
TechAhead specializes in digital product engineering tailored for social commerce platforms, ensuring seamless integration of features and functionalities to enhance user experience and drive sales.
Our mobile app consulting services provide strategic guidance on social commerce app development, helping businesses identify key market opportunities, define feature requirements, and devise effective strategies for success in the social commerce landscape.
TechAhead offers expert social commerce app development services for the iOS Apple app store and Android Google Play Store platforms, leveraging cutting-edge technologies and best practices to create engaging user interfaces and dynamic social apps that drive revenue and customer engagement.
Ensuring the quality and reliability of social commerce apps is crucial for customer satisfaction and retention.
TechAhead offers comprehensive quality assurance and testing services to identify and address issues or bugs in your social app, ensuring a seamless user experience across all devices and platforms.
Continuous maintenance and updates are essential for the optimal performance of social commerce mobile apps.
TechAhead provides ongoing application maintenance services, including bug fixes, feature enhancements, and platform updates, to keep your social e-commerce app running smoothly and meet your customers’ evolving needs.
Understanding user behavior and app performance is critical for optimizing social commerce apps for success.
TechAhead offers mobile app analytics solutions to track key metrics, gather valuable insights, and make data-driven decisions to improve user engagement, conversion rates, and overall app performance in the dynamic social commerce landscape.
The distinctions between social commerce and traditional e-commerce reshape how we shop and interact online.
While traditional e-commerce focuses on transactions, social commerce leverages social and user-generated content to create immersive and engaging shopping experiences.
As social commerce continues to gain momentum through its entertaining shopping experiences provided to customers, businesses must adapt and embrace its unique features and strategies to stay competitive in the ever-evolving digital landscape.
Take the first step towards building your social commerce app and unlock the new possibilities with TechAhead.
Contact us now to embark on your social commerce mobile app development journey and stay ahead in the digital age!
Social commerce offers customers convenience and accessibility, allowing them to discover and purchase products directly within their favorite social media platforms.
It also provides opportunities for social interactions, product recommendations, and user-generated content, enhancing the shopping experience.
Businesses can leverage user-generated content by encouraging customers to share their experiences, reviews, and photos of products on social media.
This content serves as authentic endorsements and testimonials, positively influencing potential customers’ purchasing decisions ultimately generating revenue for the businesses.
Businesses can measure the success of their social commerce efforts by tracking key performance metrics such as engagement rates, conversion rates, average order value, and return on investment.
Analyzing these metrics provides valuable insights into the effectiveness of social commerce strategies and allows businesses to make data-driven decisions for optimization and improvement.
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