Most brands have the opinion that their e-commerce growth increased from social media. So the question that arises is, has social media played a part in increasing revenues and if the answer is yes then can the profit be estimated by social media or is it all just a joke?
1. Online shopping trends
The whole idea of shopping has changed drastically. People now tend to find out about what they desire online, then go shopping offline. For example a person looking for a long lasting, waterproof makeup foundation will search for online reviews of people and then easily go for the most voted product.
Which means, that the more the brand’s/company’s products are circulating online, more likely will it get the attention of an interested buyer.
Analyzing the shopping trends and conversions of about 500 million followers around the globe, sales force has reached the outcome that in spite of all the industrial hype across social media, it had no significant role in its market. Only 4.7 percent of the market and 2 percent of orders are based on social media.
Profit from mobile phones is increasing year by year. While visits through other devices can be seen decreasing year on year. E-commerce orders have been noticed to flourish. Mobile conversion rates growing up to 14 percent and 41 percent from all e-commerce settlements were accounted for orders with mobile phones.
Since the last year, conferred by index, digital commerce boosted revenue for retailers by 15 percent. This was because of the 9 percent increase in traffic and the other 6 percent increased expenditure by the shopper per visit.
3. Sales and Free Shipping
Discount rates have seen to incline by 10 percent through the year which becomes an average rate of 21 percent. Along with offering greater discounts, retailers are offering free shipping.
A survey analyzed that 65 percent of all orders shipped online were free of shipping costs in the year 2018 which resulted in 11 percent increase in orders over the past two years.
Even though some of the e-commerce giants are providing one day delivery to your doorstep, still people are heading towards their nearest possible shops when they need something urgently.
In the era of e-commerce and online shopping, people are still not entirely over with physical shopping and may not be for a further ten years maybe. The Morrisville, N.C. -based Netsertive has published a survey, the 2018 Consumer Shopping Trends Survey. It indicates that at least 80 percent people tend to research online before they opt to buy something physically. This shows that social media still has a significant impact on the people of today. Polling showed that over 40 percent of 500 US buyers used Facebook to look for local stores, YouTube taking the second place with over 13 percent and Instagram being the third by 9 percent.
Social media has become a very important tool for businesses to engage a large amount of audience and to gain the brand recognition in a very short time. But there still arises a question that social media suits our requirements or not. So there is a survey conducted in the UK in which several marketers were interviewed and they were asked for their opinions about the value of social media for businesses. The response from every marketer was that some part of their business is held through social media sites. Everything has some pros as well as cons; it is the case with social media for businesses.
Followers have different point views in the regard that social media has a direct effect on their business growth. Some have the point of view that social media directly affects the business growth that is why they use social media marketing to get their level of sales enhanced. The other half of the people are of the thought that they haven’t found any direct positive effect of social media on their business but still, they do it because they feel that they should. These people use the social media platforms just to share the blogs and tools and don’t use it to increase their level of sales. People, who use social media for the sake of earning high profits, do it with the intention of getting a large audience, and to provide the brand awareness to the customers. For immediate brand awareness of startups, buy Instagram followers to get fame overnight and viral.
In short, brands that provides quality products and offer flexible deals alongside win the market race at the end of the day. Social media being used all around the globe offer higher opportunities for brands to publish their products, so they are visualized on a larger scale and of course resulting in higher profit.
These were some of the reasons why E-commerce growth increased from social media.