It is already known how much e-commerce and digital sales have grown in the last couple of years. If digital business was already in expansion, after the pandemic we have seen online sales grow exponentially. Many users who weren´t used to buying online were forced to adapt the way they purchased their goods.
Digitalization accelerated businesses all over the world and brands had to learn not only how to improve its experience on e-commerce but also how to communicate, engage and sell through social networks.
Social media are no longer platforms for sharing lifestyle and personal things but has become an important place for brands to position themselves and build their business strategies. According to Opinion Box, in 2022, 71% of Brazilians already used social media to buy their products and 75% of them look for new products and brands through these networks.
The majority of searches and purchases are through Instagram (57%), Google Shopping (46%), Facebook and Whatsapp (both with 40%). This means that the shopping channel has increasingly moved away from formal means and towards these platforms.
On the platforms side, the big techs have also identified the huge opportunity for online sales and have invested on new features to help increase transactions through social media.
Social Commerce must grow even more in 2023
An Accenture study, carried out in 2022, projected that social commerce reached a total of US$ 492 billion globally, with China and India being its main consumers and providers. But the value is still small compared to what was projected for 2025 — having that year as a base for scaling.
By 2025, research reveals that social commerce will grow up to three times faster than traditional e-commerce, reaching a total of $1.2 trillion in two years. In 2023, this rise should also become much clearer.
In general terms, it is likely that Brazil will advance even further in its sales strategies for social networks, either with more adherence to the platforms — in particular, with an even more evident rise in WhatsApp and Instagram — or even with a strategy of benefits exclusive to these channels this year.
Generation Z and Millennials will be the main consumer
The same study by Accenture has shown that this growth in social commerce is mainly due to Generation Z and Millennials, who are more used to buying online and being recommended by networks — even within them.
By 2025, however, accounts from these generations will account for 62% of social commerce revenue, predicts the study. And there is a much more logical explanation for this, especially related to the way Brazilian consumers use the internet when making a purchase.
The confidence of these new generations — digital natives — within websites or social networks when making a purchase is usually greater than that of older generations. And this is not just a result of habit: the GenZ are less likely to fall into scams, because they know most of the fraud strategies.
This makes them not only more open to online consumption, but also more likely to walk towards new technologies without fear and with greater adherence.
Let´s see what are the main platforms growing with social commerce and how your brand can benefit from them.
Instagram is one of the platforms that have invested the most in tools and resources for social commerce activities. This happens due to the mobile nature of the social network, which has been consolidated for years and remains extremely relevant in the market.
This characteristic is directly connected with the behavior of the current consumer, who is also buying more and more through smartphones. In addition, Instagram also stands out for its focus on visual publications, an ideal aspect to promote products from the most different segments.
The platform has the Instagram Shop, a space where visitors can find ads for different products. In addition to interactive navigation, this functionality allows the user to negotiate directly with each profile.
Facebook is one of the most popular social commerce platforms on the market, and that’s no wonder. It has an extremely large user base, which in itself gives companies a lot of exposure.
Another important point is that Facebook was the first social network to introduce the “Buy” button among the possibilities of CTAs. What’s more, this social network also offers amazing advertising features such as Face ADS, which allows advanced segmentations and analysis of each ad campaign.
TIK TOK
It is possible to say that Tik Tok is one of the most important social networks in the world today. After all, the network conquered generation Z in full and managed to expand its audience in a surprising way.
Today, it has users of different ages and interests, and is catching the attention of companies around the world, thus establishing great potential on the platform.
At the moment, Tik Tok’s algorithm allows its publications to gain great visibility, especially when compared to other media, which limit the organic reach of publications.
This context makes the platform widely used to increase revenue, through creative content that promotes and sells various products. What’s more, it contributes to engagement and awareness of your brand.
In this sense, the best option is to analyze the platform and compare it with your personas. In this way, you will be able to identify whether this network is compatible with the reality of your e-commerce.
Pinterest has never been the most popular network in Brazil. However, in the last years, the platform has grown a lot for brands and online businesses. According to the network, Pinterest is the place where people find their favorite products. People who buy there are looking for something new, but they know what exactly.
That is why Pinterest is known as a place where people look for inspiration and end up finding a product or a brand they identify with. Because they are more open to discovering products, they buy more and are more loyal to the brand over time.
The catalogues are the firs step to start selling on the platform. When you connect your website catalog, Pinterest automatically populates your entire product feed. In addition, your profile now displays a Buy tab, which makes it easier for people to find your products.
This approach has many benefits: stores that upload their products to Pinterest catalogs gain five times more impressions than those that haven’t yet added their products.
From the same group as Facebook and Instagram, Whatsapp is also a highly potential platform for online sales. If you have a business account, you have already permission to upload a catalog of products and to contact customers in an easy and closer way. It is even possible to transfer money directly from the app.
Main points to consider before applying strategies for social commerce
- Connect your e-commerce with your social networks
Platforms such as Instagram and Facebook have the Shop feature where you can build your own online store. Consumers can search, explore and buy your products straight from these channels. Other channels, such as Pinterest and Tik Tok come with the ‘Buy’ button and redirect your customer to the website product page.
- Content is key to attract more customers
Even though they are becoming sales channels, social media is still a place where people like to communicate, learn and engage with their communities. As an open space for comments, reviews and exchange between brand and consumer, it is essential to invest in relevant content, considering your target and their main needs. Keep in mind to produce shareable contents so your brand can reach more and more people to its profile.
- Make easy to contact your brand
For the social commerce to work, it is important that you make easy for people to contact your sales team/ brand. Invest on a direct channel for customer support – feedbacks or doubts when buying. Also, have always a close look to comments and direct messages as they always bring good opportunities for converting a new customer.
If you are an international brand and want to invest in Brazil, don´t hesitate to talk to us. We are experts on developing, accelerating and consolidating foreign brands in the Brazilian territory.
