The Social Commerce Blog

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news on social commerce

August has already passed and so it’s time to take a another look at what happened in Social Commerce during the last four weeks: While Twitter has introduced Promoted Stickers and is going to charge advertisers at least $500,000 for them, Facebook is said to improve its platform and messenger for merchants. To let you know  what else happened, we have put together the latest articles on Social Commerce.

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Digitas LBI, an online marketing and technology agency headquartered in Boston/USA, has published a new study on consumer behavior – and it’s full of useful insights for people who are engaged in Social Commerce: Focussing on a) how consumers make their purchase decisions, b) how many of them expect delivery within one day and c) if they take trust into a sales advisers expertise, Digitas LBI was able to figure out some national characteristics and patterns consumers from across the world have in common.

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For many years the United States have been considered as the biggest eCommerce market of the world. Not only Amazon and eBay were founded here, but also several renown (internet) retailers such as Groupon, Macy´s, Walmart and Zappos. But times have changed: Today Asian players such as Alibaba, Aliexpress and JD.com are about to outshine their American competitors. While American online shoppers spent $483 billion for their purchases in 2014, China-based retailers have generated a turnover of $538 billion. There are reasons for America’s loss of significance, even in the field of Social Commerce.

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Okay guys, it’s the fourth of August – time for our monthly review on what has happened in Social Commerce so far. And to be honest, we are a little bit disillusioned at the moment. When we came up with our “Five reasons why 2016 will be the year of Social Commerce” piece back in January 2016 we were confident that things are going to move on more quickly. But as the experience of the recent months teaches us, major players such as Facebook, Instagram and Twitter are still struggling to get their foots on the ground. Good for us as we are still growing and strongly benefitting from our market-leading positions, but a few attempts of Snapchat, Instagram and Carousell are worth mentioning, too.

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When you take a look at how the eCommerce market is structured in – let’s say – the United States, the UK or Germany, there can be no doubt that first of all one player is leading the field: Amazon. While Amazon was able to count as many as 1.104 billion visits to its German marketplace Amazon.de during the second quarter of 2016, the number two – eBay.de – has been far behind with only 713.28 million visits. And the situation is the same in most of the other countries across the world. So there must be a reason why Amazon was able to become that succesful and to retain its leadership. We believe there are at least five things other retailers can learn from Amazon.

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Social commerce is said to be one of this year’s marketing trends as more consumers rely on recommendations from their friends and other shoppers when making their purchasing decisions. But how do consumers across the world and in the UK use deal-sharing communities like HotUKDeals to do their shopping?

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Social Commerce isn't going go fail

Buy Buttons have been heavily discussed during the last couple of months as major players such as Facebook, Pinterest and Instagram are going to implement those buttons and other advertising formats for internet retailers to monetize on eCommerce. But now as Twitter decided to curtail product development on its Buy Button and shifted its commerce team into other divisions within the company, first doubts are expressed. Andrew Meola, writer for Business Insider’s premium research service BI Intelligence, has even come up with the theory that Social Commerce is failing because most Social Media users aren’t very likely to click on a Buy Button. In our eyes, Andrew Meola’s article is typical for the discussion about Social Commerce that is insufficient and superficial in at least three aspects.

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It’s already the ninth of June today – time to look back at all those changes that happen and news that were discussed since our last news update one month ago. While Twitter has finally and – as we believe – unavoidably disbanded its Social Commerce team, Amazon is still struggling to get a grip on fake reviews on its marketplaces and Rakuten shuts down its British marketplace. But there were also some good news: Raising an impressive amount of $1.8 billion in its Series F Snapchat has shown once again that the company is going to shape the future of Social Commerce and the way how people with each other.

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The first of June hasn’t been a good day for Number26. In fact, it has been one of the worst days in the still young history of the Berlin-based startup that was founded only three years ago, but is already seen as one of Germany’s leading players in financial technology (FinTech). The reason for Number26′ image loss is not necessarily the fact that the company has dismissed more than hundred of its customers, but that Number26 made at least five avoidable communication errors companies should avoid to communicate successfully.

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Twitter is making headlines today. As Alex Kantrowitz, News Reporter at BuzzFeed, broke the story, that the company has most recently curtailed product development on its Buy Button and shifted its commerce team into other divisions within the company. What seems to be surprisingly at first, could have been foreseen: In fact, the Twitter Buy Button was doomed to fail, says our Founder and CEO Fabian Spielberger. Find out more about his view at medium.com.