Notice: Undefined index: aid in /home/idolain/ on line 2
Easy Guide to the Meaning of Social Commerce

Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Easy Guide to the Meaning of Social Commerce

By Michael Dehomme Subscribe to RSS | December 1st 2011 | Views:

In a nutshell, social commerce is the method of using interactive, user-generated dialogue to promote and sell products or services online.

This would include user forums, reviews, customer ratings, recommendations, referrals, social advertising, social shopping tools and other ways to facilitate user engagement, such as applications that allow people to easily jump from their Facebook page to a website where they can checkout online.

The following guide will give you an understanding of the key terms, concepts and benefits involved in social commerce, to show you why it is an important tool for any business.


The term social commerce was first introduced in November 2005 by Yahoo! to describe a range of convenient online collaborative shopping tools that facilitate user-generated content-sharing of product information and advice.

Two of the main innovators to develop the social commerce concept were David Beisel who focussed on user-generated ad content on e-commerce sites and Steve Rubel who further expanded this activity to include collaborative e-commerce tools that enable shoppers "to get advice from trusted individuals, find goods and services and then purchase them".

Today, social commerce encompasses a wide range of social media tools and content to encourage e-commerce. Marketers are increasingly realising that social networks boost consumer confidence in brands, so this industry is growing at a rate of knots.

Key Terms Related to Social Commerce

Social commerce entails a collaborative network of vendors who use online media to promote user interaction and contributions. Statistics are showing that social shopping via the Internet is steadily outpacing the traditional way people choose the products and services they want to buy.

Benefits and Types of Social Shopping

This term boils down to shoppers promoting products and services to their friends – this is nothing new, except now there are numerous clever platforms and tools that allow people to engage and communicate with each other online.

The benefits of social shopping websites for retailers are that they generate revenue not only from advertising and click throughs, but also by opening a direct window to what users think about products and services.

There are five main methods used to promote social shopping:

• Shopping communities – these sites bring like-minded people together to discuss, share and then use this information to buy. As their popularity increases, users are being provided with enhanced online tools to streamline their experience, such as creating custom shopping lists that they can share.

• Recommendation engines – this functionality enables shoppers to provide product advice and feedback to fellow shoppers. People are also increasingly engaging in recommendation sites that allow them to have conversations with each other.

• Social shopping marketplaces – these online destinations bring sellers and buyers together directly, such as eBay. They are the virtual equivalent of a market bazaar, where sellers are able to display their wares and users can ask questions or even at times bargain for a lower price.

• Group shopping sites – these platforms encourage groups of people to buy together online to get attractively discounted wholesale prices. Another form of this, used for catalogue-based ecommerce sites, would be where shoppers are able to form ad-hoc collaborative shopping groups and one person then shops for many people using real-time communication with each other and the retailer.

• Social Media Optimisation – by adding Twitter, Facebook, Blogs etc to your website, people are encouraged to share information and feedback.


Social commerce makes use of one of the most natural activities of society – the sharing of how we think and feel about things – to drive e-commerce (online sales). To facilitate this, tools and platforms are increasingly being developed to better help both shoppers and retailers to get their message across.

With the current figure of consumers buying online at around 54% and rising in the UK alone, social commerce is a force that all retailers and service providers need to take notice of and learn harness. But it’s also crucial to go about it in the right way – as a business owner, always ensure you understand your target audience and have a clear strategy. My next article titled ‘Top Tips on Developing Your Business Using Social Commerce’ will give you some advice on achieving this.

Finally, it’s important to re-iterate that social commerce carries a powerful ‘word of mouth’ punch – when consumers read reviews or feedback on products or services by other consumers just like themselves, they are far more likely to trust it than the cleverly sculpted marketing that companies display. If done correctly, this means you can boost confidence in your brand at a greatly reduced price than a traditional advertising campaign.

Michael Dehomme - About Author:
Michael Dehomme is a marketing consultant and social commerce trainer.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Business Articles Subscribe to RSS

The wireless retailing effectively future of your favorite E-commerce organize
Published by Perlie Lee on March 22nd 2012 | Business
Near field communication (National football conference) usually recognized standard the airwaves ver...
Guide to the social security disability benefits
Published by Safinajones on February 21st 2012 | Business
It is very important to know as much as possible about the social security disability and the benefi...
Take the help of a social security attorney to apply for social security disability benefits
Published by Safinajones on January 6th 2012 | Business
Social security disability benefits is a scheme that is designed to help individuals with disabiliti...
E-commerce Market in China 2011
Published by Bharatbook on June 11th 2012 | Business
Bharatbook added a new report on "E-commerce Market in China 2011" which gives an overview, Demand,...
Contact social security disability attorney to avail disability benefits
Published by Safinajones on January 12th 2012 | Business
Disability is a curse for people when it cripples life and stops working capacity. In case of emerge...
Before you set up an E-commerce website, be sure to get the right Malaysia web design company to help you out.
Published by Jack on June 14th 2012 | Business
The E-commerce industry in Malaysia is now emerging stronger and faster than ever. Malaysia is one o...
E-commerce and Business to Business Online Market
Published by Minal Dussal on February 22nd 2012 | Business
E-Commerce industry helps to improve tour business as per market trends. E-Commerce and B2B marketpl...
Things to Understand About E-commerce Websites
Published by Julia Roger on August 23rd 2012 | Business
First impression serves to be the last impression and if you have a well designed and effective e-co...
Social security is a social welfare program to provide financial welfares
Published by Thessadvo on April 16th 2012 | Business
Social security is defined as a social welfare program supplying social security or security against...
How Service Fulfilment and E-commerce Fulfilment are Beneficial for Business
Published by Diego Hall on March 13th 2012 | Business
Service Fulfilment and E-commerce Fulfilment are beneficial for any business so it is recommended to...
It is better to apply for social security disability through security advocates
Published by Thessadvo on April 26th 2012 | Business
The social security disability insurance is the plan that provides benefits to people with disabili...
A basic guideline to SSI and the social security disability benefits
Published by Safinajones on December 22nd 2011 | Business
When you talk about the SSI disability, you might instantly think about the senior citizens. Here ar...
Increase the productivity of your business with the help of Marketing Fulfilment and E-commerce Fulfilment
Published by Diego Hall on December 15th 2011 | Business
The e-commerce fulfilment as well as the marketing fulfilment is the two important extension of busi...
E-commerce Fulfilment – Efficiently Helps the Business Growth
Published by Diego Hall on December 2nd 2011 | Business
E-commerce Fulfilment is a most outstanding technique by which postponements in delivery of commodit...
When can you apply for social security disability benefits?
Published by Safinajones on February 29th 2012 | Business
There are some essential steps that you must take in order to successfully apply for the disability ...
There are few factors for Filing social security disability which are crucial
Published by Thessadvo on April 9th 2012 | Business
As Filing social security disability benefits is a complicated & long procedure. To recognize why th...
A Comparison between Big commerce Vs. Core commerce
Published by James on April 3rd 2012 | Business
Web hosting in unspecialised is very critical and has to e'er be advised in visit to neaten the cosm...
Importance of E-commerce Fulfilment and Fulfilment
Published by Diego Hall on December 22nd 2011 | Business
E-Commerce Fulfilment and Fulfilment have gained popularity to a great extent because of the benefit...
Importance of hiring social security lawyer Houston
Published by Louise Carala on August 24th 2012 | Business
Due to the complex procedure of filing case against social security disability benefits it is always...
How to apply for social security disability
Published by Thessadvo on April 24th 2012 | Business
As we know that the social security disability is the federal program that provides assistance to pe...