Social commerce is growing all across the globe and it is paving the way for entrepreneurs to grow their business, irrespective of the fact whether it is a small business or a big business. However, that being said, social commerce has helped greatly to grow small businesses.
According to a report by Bain & Company, the social commerce market will be a whopping $70 billion market by 2030. In the current time, the world is connected digitally and a lot of content is consumed through social media. This is creating a way for small businesses to sell their products directly to customers through social media platforms. The traditional way of selling products is no longer the only way of earning profits for the business.
Social media platforms have been present for quite some time. However, the usage of social media platforms for business has been phenomenal since March 2020. Small businesses can use social media marketing strategies for growing their business and they have been using it for growing. This is how social commerce is encouraging small businesses.
1. Small businesses are focused on individual and community
What makes small businesses unique is that small businesses are individual and community-focused. This, in turn, helps the small business to create a personal connection with the customers and this has been made possible by social commerce. With the help of different social media platforms, it is possible for the owners of small businesses to connect with the customers and grow their business while earning profits similar to the winning sum of Lottery Sambad and Dhankesari. Also, while operating a small business through social media platforms, it becomes possible for the business owners to address the comments of the customer personally and build a good engagement rate.
2. Advertisement cost less in social commerce
Social media platforms have realized that they can help in the growth of a business and therefore, these platforms have allowed the business owners to advertise through them. The investment required for social media advertisement is less in comparison to the traditional form of advertisement. Many small businesses set a budget, choose their audiences and advertise their products and services to reach the potential customers out there. For a start, many small businesses focus on advertising in their local geographical area. Once the business increases in the local area, one can then go for a nationwide budget depending upon the growth of the business.
3. Increases site traffic
Many small businesses host their products and services on their very own websites. Driving traffic to the website from the search engines alone requires a lot of effort. However, it can be done easily using social commerce. Social media platforms are used by small businesses for driving traffic from social media platforms to private websites. This traffic also helps in improving the inbound traffic and allow the small businesses not to engage only on SEO. Instagram now allows the users to add links in their stories and one will find many small businesses doing the same for directing the traffic to their personal websites.
4. Increasing brand awareness
Gone are the times when brand awareness used to happen over magazines, radio and television. In the current time, social media platforms play a key role in increasing brand awareness amongst the masses. With social commerce, one can generate brand awareness at a much quicker pace and that too without spending too much money. Also, many small businesses hop in the trends to stay relevant amongst the mass and trend themselves while working on a trend. For instance, on Instagram, you will find many small business owners working on the latest trend to showcase their product with the right hashtag.
Social media platforms are now much more than platforms that are used solely for recreational purposes. It has become vital for all businesses to mark their online presence. The type of personalized interaction that can take place with the potential and actual customers is basically the USP of social commerce. For effective use of social commerce for business, it is important to know its trends. Currently, video content is the king for Instagram and TikTok. According to a survey conducted by HubSpot, 30% of businesses are planning to invest in a short-form video for displaying their product and services. Many small businesses have cracked the right strategy for using social commerce to boost their business and social commerce is here to stay to help the small businesses grow.