Social commerce spotlight: Social media sales are up 357%, according to new study that shows f-commerce ain’t dead yet
Research by ShopSocially shows that there’s been a 357% increase in sales from social traffic compared to 2012, resulting in a revenue uplift of 17.8%.
However, much of this success can be attributed to a new approach to f-commerce. Forget standalone stores, it’s social couponing, product polls and purchase sharing which is having the most impact and delivering impressive results:
- 8.5% increase in traffic from word of mouth recommendations
- 2.1x higher customer acquisition rate for visits from social referrals
- 91% of e-commerce websites saw a lift in SEO rank from social sharing actions
The study also shows that flash sales with built-in virality are the best off-site social commerce strategy. While attempts to create full-fledged ecommerce stores on Facebook have produced underwhelming results, time sensitive flash sales have fared well on social channels, resulting in:
- 63% increase in sales from email campaigns with built-in social virality
- $17 in revenue per Facebook fan by running a viral Facebook Offers campaign
Finally, the research also shows that quality matters more than quantity when it comes to Facebook fans. High quality fans are 14.7 times more engaged and convert at a 3.2 times higher rate than low quality fans.
“Most brands equate social commerce with their ability to generate sales on social channels. That’s just plain wrong,” said Jai Rawat, CEO of ShopSocially. “The true power of social commerce is in adding social elements in the commerce flow and not the other way around. It is criminal to send a hard-acquired visitor away to Facebook for social validation. You must use embedded social modules to keep her on the website, to convert her to a sale, and to get her to refer her friends in the process!”
The report’s full results can be viewed in infographic form here.