In today's digital age, businesses have more ways than ever to reach their audience. Traditional web pages are still important, but social commerce platforms are now essential for businesses of all sizes. These platforms allow businesses to connect with customers on a more personal level, promote their products and services, and drive sales.

However, it is important not to overuse resources. You must choose the right social commerce platform wisely to get the most out of your efforts. 

 In this blog, we'll guide you in choosing the perfect platform that meets your business goals and helps you maximize your online sales potential.

What Are The Different Social Commerce Platforms? 

If you’re new to social commerce, it’s essential first to understand the different social commerce platforms and what they are.

Social commerce platforms are online platforms or websites that combine elements of social media and eCommerce to facilitate buying and selling products or services.

Some of the popular social commerce platforms include: 

• Instagram Shops - Businesses can create shoppable Instagram posts and tag products in photos, and users can purchase products directly from Instagram without leaving the app.
• Facebook Marketplace and Shop - Facebook Marketplace is a platform for buying and selling products within the Facebook ecosystem. The platform also gives you the ability to set up Shops on your business page. 
• Pinterest Shops - Pinterest Shopping integrates product pins and shopping catalogs into the Pinterest platform. 
• TikTok Shops - TikTok Shopping allows users to shop directly from TikTok videos with product links. 
• Snapchat Spotlight - Snapchat Spotlight features user-generated content and lets users shop for items directly from the app.
• WhatsApp Business - WhatsApp Business is a messaging app that allows businesses to create a catalog of products that customers can browse and purchase. 

How To Choose The Right Social Commerce Platform? 

Choosing the right social commerce platform for your business requires careful consideration of several factors. Make sure the platform aligns with your goals, target audience, and products or services. Here are some steps to help you make an informed decision:

1. Identify Your Target Audience

Identifying your target audience is a critical factor in choosing the right social commerce platform, as it directly affects the effectiveness of your platform and the success of your marketing efforts. Different social commerce platforms cater to different demographics and user behaviors, so aligning your audience with the platform's user base is essential to achieving your business goals.

Here are some other tips for identifying your target audience:

• Analyze your current customers. What are their demographics? What are their pain points? What are their buying habits? 
• Do market research. What are your competitors doing? Who are they targeting? What are the latest trends in your industry? 
• Use social media analytics tools. These tools allow you to track the demographics and interests of your audience. 

Ignoring your target audience can lead to wasted resources and ineffective marketing campaigns. By aligning your audience with the right platform, you increase your chances of attracting leads that are more likely to convert, ultimately maximizing the ROI of your social commerce platform.

2. Define Your Goals And Objectives 

Determining your goals and objectives is a critical step in choosing the right social commerce platform, as it forms the basis for tailoring your platform choice to the needs of your business. This process can guide your decision as follows.

First, your goals provide clarity on what you are trying to achieve with social commerce. 

For example, if your main goal is to increase brand awareness and engagement among Gen Z, platforms known for their visual content and younger user base, such as Instagram (70% of users are under the age of 35) or TikTok (60% of users are under the age of 24), may be suitable. 

Second, goals help you set specific, measurable goals.

For example, suppose your goal is to generate 20% of your monthly revenue through social commerce within six months. In that case, you need a platform that supports strong e-commerce integration and performance tracking. 

According to a recent study by Accenture, social commerce sales are expected to reach $1.2 trillion by 2025. This means that there is a significant opportunity for businesses to generate revenue through social commerce.

Finally, understanding your goals allows you to prioritize platform features accordingly. 

For example, if your goal is to improve customer engagement, you will prefer platforms with strong community-building features and customer communication tools. 

A study by Sprout Social found that 80% of consumers are more likely to do business with a brand they follow on social media. This means creating a community around your brand on social media and providing excellent customer service is crucial.

3. Evaluate Platform Features 

Now you know that each platform offers a unique set of tools and features that can significantly impact your ability to reach and engage with your target audience.

For example, if your business primarily sells visually appealing products, such as fashion or home decor, platforms like Instagram and Pinterest may be ideal because they emphasize visual content. Their purchase features allow users to click on products in images and make direct purchases, enhancing the shopping experience.

On the other hand, if your company serves a B2B audience, platforms like Linkedin may be a better fit. These platforms offer strong networking and lead-generation capabilities that allow you to connect with potential customers or partners directly.

In addition, some platforms offer advanced advertising options and targeting features. If your marketing strategy relies heavily on paid advertising, platforms like Facebook provide extensive ad targeting tools to help you reach specific demographics and interests.

By understanding your goals and the features of each platform, you can make an informed decision that will maximize your social commerce success.

4. Evaluate Your Resources

By evaluating your resources, you can make a strategic decision that matches your capabilities and maximizes your chances of success on a given social commerce platform.

For example, you have a small business with limited people and resources. You are considering selling your products on the TikTok Store or Instagram Shopping. After evaluating the resources, you realize you have a talented in-house photographer and a collection of high-quality product images. However, creating video content requires more resources and time from your team.

In this scenario, Instagram Shopping could be a better platform for your business. Studies have found that 60% of Instagram users have purchased after seeing a product on the platform.

Also, it focuses on visual content, including still images compatible with your existing resources. You can use your existing image content to showcase your clothing collection with well-curated posts and tag products for direct purchase.

By choosing Instagram, you can make the most of what you already have without significantly increasing your content production workload. You can also tap into Instagram's large and engaged user base to reach more potential customers and boost your sales.

5. Evaluate Control Over Data

Assessing data control is critical for long-term sustainability. In 2023, 73% of businesses believe data control is essential for long-term success. 

However, only 41% of business leaders have a strong understanding of their data control capabilities.

It's essential to balance the convenience of third-party platforms and maintain control over your customer relationships and data. The right choice depends on your business's priorities. Still, platforms that offer more data transparency and control can provide a valuable asset for ongoing customer engagement and marketing efforts beyond the platform itself.

For instance, consider the difference between directing customers to your website versus selling exclusively on a third-party social commerce platform like Instagram. 

When customers visit your website, you have complete control over data capture, enabling you to understand their interests, preferences, and behaviors. This data empowers you to offer personalized recommendations, retarget them, and build long-term relationships.

In contrast, on some social commerce platforms, you may have limited access to customer data, relying on the platform's algorithms for recommendations and customer interactions. If you stop selling on such a platform, you lose valuable customer insights, making it challenging to reconnect with those customers or carry your customer knowledge to another platform.

Recommended read: 7 ways to gather eCommerce customer data in the post-cookie world

6. Evaluate Revenue Generated From Each Platform

By evaluating revenue, you can optimize your social commerce strategy by focusing on the platforms that deliver the best results for your business. 

This approach ensures you don't waste resources on less productive platforms and helps you allocate resources more efficiently, ultimately improving your bottom line.

For example, imagine you have an online fashion store and decide to sell your products on Instagram and Pinterest. Within a few months, you can track and compare the revenue generated by each platform. You'll notice that Instagram consistently brings in more sales than Pinterest. This review will tell you that Instagram is a more powerful platform for your fashion business.

You can now allocate more resources to Instagram, such as advertising budgets and content production efforts, where you will see a better return on investment. You can also explore why Pinterest isn't doing so well—maybe your audience on Pinterest differs from Instagram, or you need to tweak your content strategy.

7. Access To Detailed Analytics And Reporting Tools

Detailed analysis and reporting tools empower businesses to make informed decisions, optimize their strategies, and ultimately drive growth and success in a competitive social commerce environment.

For example, you use a social commerce platform that provides in-depth analytics for online purchases. By analyzing the data, you realize that:

• 60% of your customers come from Instagram.
• A specific product group, such as apparel, does exceptionally well among young adults.

With this information, you can:

• Allocate more resources to Instagram marketing.
• Focus on expanding your product portfolio in popular categories, such as apparel.
• Create targeted marketing campaigns that appeal to young adults.

This targeted approach increases the likelihood of attracting and retaining customers, resulting in better sales and profitability.

Final Thoughts

Social media is a crucial channel for acquiring new customers, but our study reveals that social commerce revenue is often underestimated by up to 275%. This is because consumers discover products on social media but buy them on the brand's website, making it challenging to track sales and measure campaign impact accurately.

Social commerce is also broken because it is siloed to each platform. This means that consumers have to switch between different platforms to research products, compare prices, and make purchases. This frustrating experience for consumers leads to lost sales for brands.

This is where AI-powered social storefronts come in. They enable brands to integrate their website into social media, offering consumers a seamless experience for researching, comparing, and purchasing products, potentially boosting revenue by up to 73% and cutting customer acquisition costs by up to 42%.

If you seek improved social commerce outcomes, it’s time to set up a comprehensive social storefront using AI with SimplicityDX. 

Book a demo today to learn more.