The way we shop today is changing rapidly. The two popular terms that pop up when you’re trying to sell online are e-commerce and social commerce. While both may sound similar, they are two different concepts with unique features, advantages, and challenges. Understanding both can help you pick the right path for your digital selling journey. It will help you reach your target audience and make more sales. In this post, we’ll uncover the meanings, pros, and cons of both online selling techniques. Let’s dive in.
Social Commerce vs. E-Commerce: A Comprehensive Comparison
Let’s first talk about e-commerce, its key features, and pros & cons.
What is E-Commerce
E-commerce, short for electronic commerce, refers to the buying and selling of products through the Internet. The selling process can take place over any online platform, including websites and mobile apps. Some examples of e-commerce giants are Amazon, Alibaba, and AliExpress.
Key Features of E-Commerce
In an e-commerce business, you can create an online store to sell any product you want. For instance, users go to Amazon, add any product to their cart, and go through with the purchase with online payment. The whole process takes place online, providing a streamlined experience to the buyer or customer. As an e-commerce store owner, you can add product images, headlines, and descriptions to your product pages.
Advantages of E-Commerce
According to data, global e-commerce sales are projected to reach $7.96 trillion by 2027. E-Commerce provides a great platform for sellers to establish and grow their product-based businesses. They can set up their online shops easily and sell anything they want without having to attract customers to a physical shop. In addition, since you don’t need to rent a physical shop, e-commerce tends to be much more cost-effective than traditional commerce.
From a buyer’s perspective, anyone can buy almost anything on their internet-enabled devices. This convenience helps business owners generate more sales and build a reputation quickly. Also, unlike a physical store, e-commerce lets you broaden your horizons and let more people purchase your product. With data analytics and tracking, you can understand customer behavior and tailor your product based on their likings.
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Challenge of E-Commerce
Like any business model, there are some drawbacks associated with e-commerce. One prominent one is the high competition that makes it tough for startups to make their mark. You’ll need to find a relatively low-competition product or market in order to stand out and grow quickly. In addition, since you’re selling online, there’s a risk of cyberattacks and data breaches associated with e-commerce. Another challenge is ensuring the timely delivery of delicate and sensitive products to the buyer. Also, you need to showcase your products to the right audience, which requires creating effective marketing and advertising strategies.
What is Social Commerce
Social commerce, as the name suggests, combines social media and online shopping. It involves buying and selling of products through social media platforms like Instagram and Pinterest. This means instead of directing consumers to a separate web page, social commerce allows them to purchase products within their social media apps.
Key Features of Social Commerce
The feature that makes social commerce so different and attractive for customers is the ability to make in-app purchases. From a customer’s perspective, the selling technique eliminates the need for them to visit an external page, streamlining the whole buying process. As a seller, you can showcase and promote your products through user-generated content such as reviews and testimonials.
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Advantages of Social Commerce
The ease of buying lends sellers a hand in selling more of whatever they’re selling. It eliminates a major roadblock in a customer’s journey: Trusting an external website with their information. As a result, not only do sellers get higher engagement rates, but they have a perfect opportunity to boost their conversion rates and build a loyal customer base. In addition, advanced targeting lets you reach the right people at the right time, further helping your cause. Social commerce bridges the gap between online shopping and social media, offering a much more friendly and trustworthy environment for both parties to conduct business in.
Challenges of Social Commerce
Social commerce does come with some challenges, the biggest one is to stay in compliance with the social media policies and rules. In e-commerce, you have much more control over your content and how you conduct business. Plus, if one day, a social media platform decides to close your account, you can’t do much and will have to start from scratch again. On the flip side, an e-commerce store is a more sustainable way of conducting business.
Comparing Social Commerce and E-Commerce
The e-commerce industry has been growing rapidly. It enables sellers to reach a global audience and target just the right prospects with detailed targeting. Social commerce, on the other hand, isn’t much different from e-commerce. It eliminates the need to build a website and drive external traffic. Both business models have their pros and cons. Having your own e-commerce store pays off in the long term as you have more control. Whereas, selling directly on social media platforms streamlines the process, allowing you to sell more with less effort.
E-Commerce vs. Social Commerce: FAQs
Here are a few commonly asked questions about e-commerce vs. social commerce.
What is the Main Difference Between E-commerce and Social Commerce?
The main difference lies in the platform you sell a product on. In social commerce, it’s a social media website or app. In e-commerce, it’s an online store. Social commerce lets customers buy products within a social app, making the buying process easier.
Which is Better for Small Business, Social Commerce or E-Commerce?
Both business models have their pros and cons. E-commerce lets you have more control over your business. Social commerce lets you engage and convert more people with a streamlined experience. Small businesses can use a mix of both.
How Can I Start with Social Commerce?
Start by creating business profiles on social media platforms like Instagram and Facebook. Utilize shippable posts and engage with your audience. Consider partnering up with influencers in your niche to boost your reach.
Conclusion
At the end of the day, e-commerce and social commerce are two sides of the same coin. They help business owners sell more products online. Both offer unique benefits and have their own challenges. As a small business owner, you can work on both simultaneously and track your progress to identify a better path for the future. An e-commerce store gives you more control and is best for building a long-term business. Social commerce allows you to reach more people easily and boost your engagement and sales. We’d suggest working on both models as the startup costs tend to be low.
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