With platforms like Instagram and Snapchat attracting millions of daily users, it was only a matter of time before ecommerce solutions were added. In this guest post, Worldpay Merchant Solutions FIS general manager for APAC Phil Pomford discusses the rise of social commerce.
Brands, eCommerce merchants and social media platforms alike have long recognised the potential for social media to emerge as a dynamic sales channel, with its highly visual, convenient and strongly social nature. As people are forced inside during lockdown and social media holds an increasingly captive and engaged audience, the use of social commerce is accelerating too.
The Worldpay from FIS Global Payments Report reveals that Australia has one of the highest smartphone penetrations in the world. With mobile use projected at 84 per cent of the population and internet penetration at 90 per cent, Australia is a leader in eCommerce – tenth largest by revenue, with digital and mobile wallet use continuing to gain market share. This is largely due to the increasingly frictionless mobile-first experience they offer, and the increased popularity of social media as an alternative shopping platform. It has been reported that people are spending 20 per cent more time on social media apps as a result of the global lockdown.
Fast, simple, secure payment methods are essential for ensuring social media interactions convert to sales. Reducing the gap between discovery and conversion requires an uninterrupted ‘digital last mile’. In order to thrive, the payments on social media must minimise friction by enabling a wide variety of payment options such as digital wallets, coupled with a mobile-optimised checkout and even flexible financing options for consumers who want to pay for their purchases in instalments. We also know that reducing friction makes shopping easier for consumers, delivers higher conversion rates for brands, and can cement social media platforms as an increasingly effective sales channel.
China is leading the way in social commerce, fueled by Chinese consumers’ overwhelming preference to browse the internet via smartphones. Having largely leapfrogged the desktop era, Chinese internet users gravitate to social sharing features of ‘Super Apps’ on their smartphones. According to the Worldpay from FIS Global Payments Report, WeChat has over one billion registered users in China alone.
‘Super Apps’ like WeChat consolidate multiple app functions into the one platform, so users can do everything from booking flights and hotels to socialising with friends, without ever needing to leave the app. Social shopping is also already popular with Australian consumers. According to the Worldpay from FIS Global Payments Report, eighty-one percent of Australians made a purchase through social media in 2018, with Facebook the most popular platform. Consumers who engage with businesses through the Messenger app can now purchase goods from within the chat function, all at the touch (or tap) of a button.
In 2019, Instagram enabled their ‘Checkout on Instagram’ function which allows consumers to shop products through a story or a post, without ever leaving the app. Snapchat now offers similar functionality: ‘Shop and Cop’ lets users browse and buy from any brand entirely within the Snapchat mobile app.
More recently, social media phenomenon TikTok is enjoying in-app revenue growth in India by allowing users to buy TikTok coins which are then used to purchase digital gifts for other users. The video sharing platform grossed $75 million from the sale of virtual currency. This figure is only set to grow as it increases in popularity.
As the world increasingly relies on technology to survive, the strong social and emotional components of shopping have new meaning. Social media has enabled brands to reinvent the context in which consumer emotions are stimulated. In the current climate of social distancing, social media allows products to be presented in lifestyle experiences that often create that perfect place for us all to find the right things, at the right time.
Australian owned and operated email and SMS marketing software company, Vision6, announced the launch of its first-ever national brand campaign and new brand platform “Simply Reliable”. Founded in 2001, Vision6 was one of the first email marketing software providers in Australia and has since been relied upon by thousands of Aussie businesses and organisations for […]
Out-of-Home media company JCDecaux New Zealand has appointed business growth specialist Adam McGregor in preparation for its bid to win upcoming local government street furniture tenders across the country. With contracts for the provision of street furniture including bus shelters across New Zealand up for renewal from late 2022, they collectively represent the biggest advertising […]
Fetch TV has announced that ABC iview will soon be available as a dedicated Virtual Playlist Channel on the Fetch platform. Virtual Playlist Channels (VPCs) were developed by Fetch to promote content discovery, and to provide a clear bridge between the traditional world of linear TV and the growing availability of on demand content via […]
Jackie Gillies, businesswoman, psychic medium and cast member of The Real Housewives of Melbourne is bringing her sassy, inspirational and adventurous spirit to her new podcast Shine It Up, With Jackie Gillies, which launches today via Acast. Hosted and distributed by the creator-first podcast company Acast, the show will offer listeners inspiration and motivation to […]
Crowdsourcing platforms DesignCrowd and BrandCrowd are promoting vaccination efforts in a unique way, launching a logo redesign contest among their networks of designers. The initiative saw iconic Australian brands such as Hungry Jack’s, Jetstar, JB Hi-Fi, and Bunnings undergo a redesign. “We thought it would be fun to see some other iconic Australian brands back […]
Jillian Davison has been named editor-in-chief of the recently relaunched Harper’s BAZAAR Australia. She will oversee all content, development and creative direction across the iconic magazine’s digital and brand platforms. Davison (pictured) succeeds Eugenie Kelly, who recently stepped down to pursue other opportunities. The announcement was made by Maureen Jordan, publisher of Harper’s BAZAAR Australia […]
Freedom Foods and 72andSunny Sydney have launched the first advertising campaign for Australia’s Own range of plant-based beverages. The campaign introduces a new visual world and identity for the brand and captures the healthy, positive feeling you get when spending time in nature and when consuming Australia’s Own certified-organic, plant-based beverages. As well as featuring […]