Social Commerce vs. eCommerce: What to Choose?
Over the past few years, social media has transformed into a powerful marketplace. Social commerce—shopping directly through social media platforms—has grown rapidly. In fact, global social commerce sales are projected to reach USD 8.5 Trillion by 2030, growing at an annual rate of 30%. This rise highlights how shopping habits are shifting toward more interactive and convenient online experiences.
At the same time, traditional eCommerce remains a major force in online retail. Over the past couple of years, e-commerce sales have rocketed from about 4% of total U.S. retail sales to 15%, which equals to a boost in sales of almost USD 1.4 trillion. Businesses now face an important decision: should they focus on social commerce, stick with traditional eCommerce, or combine both? Understanding the differences between social commerce vs eCommerce can help you select the best strategy for your business goals.
For businesses expanding internationally, exploring cross border eCommerce strategies alongside social commerce can bring up new horizons.
What is Social Commerce?
Social commerce has proven to be particularly effective in sectors like apparel and personal & beauty care, which lead the market with a combined share of over 36.2%. By integrating shopping features into platforms like Instagram, Facebook, and TikTok—considered among the top social commerce platforms—businesses make it easy for customers to shop without switching apps. This approach simplifies the buying process and boosts omnichannel customer engagement through users’ interactions.
It’s like you are scrolling through your Instagram feed and spot something you like. With social commerce, you can tap on the product, view details, and purchase it right there. These are real-life examples of social commerce to make shopping more interactive and enjoyable.
Social commerce uses social shopping networks to turn shopping into a peer-to-peer experience. Friends can recommend products, share reviews, and even show off their purchases, influencing others in their network.
Comparison of social commerce vs eCommerce starts with this definition. What is the difference between eCommerce and eBusiness? While eCommerce involves online transactions, eBusiness refers to the broader process of running a business online, including internal operations like supply chain management, customer service, and more.
Key Differences Between Social Commerce and eCommerce
Businesses looking to maximize their online presence must have a clear understanding of the contrast between social commerce vs eCommerce. There are specific differences in these two strategies, even though they both involve online transactions:
- Platform Utilization: eCommerce typically involves standalone online stores or marketplaces where transactions occur. In contrast, social commerce operates within social media platforms like Instagram, Facebook, and TikTok, using social shopping networks to facilitate purchases.
- Customer Interaction: eCommerce focuses on driving traffic to a website, whereas social commerce emphasizes engaging with customers where they already spend time. This approach enhances omnichannel customer engagement, creating more touchpoints for interaction.
- User Experience: Social commerce offers a more interactive and personalized shopping experience, leveraging user-generated content and social proof. eCommerce provides a traditional shopping environment with detailed product listings and checkout processes.
Additionally, understanding eCommerce vs digital marketing is vital. Digital marketing consist of all online marketing activities targeted in promoting products or services, including SEO, PPC, and email marketing. In contrast, eCommerce focuses on the buying and selling of goods through an online platform. Businesses should integrate both eCommerce and digital marketing to optimize their online presence.
Recognizing these differences in social commerce vs eCommerce and analyzing social commerce vs eCommerce trends helps in choosing the right strategy for your business.
For more interesting insights about the rise of eCommerce, check out these facts about eCommerce.
Social Commerce Examples
Many brands have embraced social commerce to connect with customers in new and engaging ways. Let’s look at some notable examples of social commerce that highlight how businesses are integrating social media and eCommerce to enhance customer experiences.
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Instagram Shopping
Instagram Shopping enables businesses to tag items directly in their posts and stories, enabling users to shop right from their feed. A good example is the clothes brand Zara, which utilizes shoppable posts to display their latest clothing lines. When followers scroll through Zara’s Instagram feed, they can tap on the tagged items to view product details, such as sizes and prices. Such implementation allows customers to add products to their cart and make a purchase without leaving the app. By simplifying the buying process, Zara transforms casual browsing into instant shopping, enhancing customer engagement and increasing sales.
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Facebook Shops
Facebook Shops helps businesses to create a customizable platform for selling on Facebook and Instagram, making it easy to showcase products and connect with customers directly within the platforms. A notable example is Loro Piana, an Italian luxury goods retailer. They utilized Facebook Shops and Meta’s Advantage+ shopping campaigns to promote their high-end apparel and accessories. By linking their product catalog through Facebook Commerce Manager, Loro Piana was able to tag products in posts and stories. This enabled customers to browse and purchase items without leaving Facebook, simplifying the shopping experience. As a result, they saw a boost in customer engagement and sales, demonstrating how utilizing social media and eCommerce can benefit businesses.
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TikTok Shop
TikTok Shop lets businesses sell products right through the TikTok app, merging engaging video content with seamless shopping experiences. A prime example is MySmile, a teeth whitening brand that took advantage of TikTok social commerce to boost sales. By utilizing TikTok’s shopping features and collaborating with influencers through the Creator Affiliate Program, MySmile showcased their products in engaging videos with “Buy Now” buttons. This approach turned viewers into customers, resulting in over USD 1 million in sales within three months. MySmile’s success highlights how brands can use top social commerce platforms like TikTok to enhance omnichannel customer engagement and illustrates the effectiveness of social commerce vs eCommerce strategies.
These examples of social commerce demonstrate how integrating shopping features into social platforms can drive sales and enhance customer relationships. They are practical applications of social commerce vs eCommerce strategies, showing real-world success.
Omnichannel Social Media & Customer Engagement
Embracing omnichannel social media strategies is essential for modern businesses. By implementing omnichannel management with consistent and personalized experiences across platforms, companies can improve customer satisfaction and loyalty. Utilizing social shopping networks, brands can interact with customers through multiple channels, ensuring a unified message and experience. This strategy not only drives sales but also leads to stronger omnichannel customer engagement with the audience.
By adopting strategies that incorporate social commerce vs eCommerce, businesses can enhance their overall engagement.
What to Choose for Your Business
Choosing between social commerce vs eCommerce can significantly impact your business’s success online. Both strategies offer unique advantages tailored to different customer preferences and business models.
eCommerce provides a dedicated online store where you have full control over design, product listings, and customer experience. It’s ideal for businesses aiming to establish a strong brand identity and offer detailed product information. If your customers prefer traditional online shopping with extensive options, an eCommerce platform might be the best fit.
On the other hand, social commerce merges social media and eCommerce to create a seamless shopping experience within social platforms. This approach relies on the interactive nature of social shopping networks, making it easier to engage with customers where they already spend their time. Utilizing top social commerce platforms like Instagram, Facebook, and TikTok can help you reach a wider audience, especially if your products are highly visual or trending.
Combining both social commerce and eCommerce can offer the best of both worlds. By adopting an effective omnichannel strategy, you enhance omnichannel customer engagement, providing multiple touchpoints for customers to interact with your brand. This approach ensures consistency in customer experience, whether they’re shopping on your website or through social media.
Ultimately, the final decision depends on business goals you set and the preferences of your target market. Whether you choose social commerce, eCommerce, or a combination of both, focusing on delivering value and a seamless shopping experience will position your business for success.
Curious to learn more about the best strategy for your business? Contact us today and discover how we can help you optimize your eCommerce or social commerce strategy for maximum growth!