S

Impact of Social Media on

E-Commerce

Facts!

Tweets analysis & comparison

Some trends…

Connecting customers and companies in new and exciting ways.

eg.flipkart, myntra (segmented discounts), facebook likes.

Professionals in the e-commerce industry have seen a shift towards social sharing in the past few years

The more they click the more they buy

Online retail sales are anticipated to grow 10 percent a year for the next five years, accounting for 56 percent of all U.S retail sales by 2016.

How do social media share the revenue…?

Assisted Revenue Per Share, Example - “Someone tweets a product and then places an order”

Twitter - $26.12

Facebook - $16.31

Email - $13.58

Want - $10.21

Google Plus - $4.71

Facebook “Like” - $4.56

Stumble Upon - $4.30

Kaboodle - $3.60

Other revenue sharing partners..

Sharing Revenue By Browser Google Chrome - 36.61%

Internet Explorer - 21.75%

Mozilla Firefox - 16.75%

Safari - 8.24%

Sharing By Device

Tablet - 4.5%

Mobile - 3.21%

Desktop - 92.29%

What is Social Commerce ???

zoetnet

Avrenim_acceber

The conversation has moved. It’s now online.

S

Ecommerce (Buying &

Selling Online)

Social Media (Online Media

Supporting Social

Interacion and User

Generated Content)

Social Commerce

(Linking Social Media

and Ecommerce)

Social Media: Fuel for your sales engine

72% of retailers plan to spend more on marketing via social networks this year than in 2013

Transformation - Multiply sales through recommendation

• Only awareness does not bring revenues

• Repeat business and referrals generate business

• Existing customers work as Marketing partners

Social Commerce : Transformation of eCommerce with Social Computing

Product Discovery• Awarenes

s• Index

Product Selection• Decision

Support

Product Referral• Evangelis

m • Referrals

People Talk

1

2

3 4

5

3. Share on Twitter4. Share via Email5. Algorithm

1. Share Your Purchase: Facebook

2. Post to Facebook Wall

S

Your Ecommerce

Site

Visitors Share Products or Purchases

Friends/ Followers:

Click Links and Share more

Increased Sales, Higher Conversions,

More Referrals

Nike Instagram Photo-id campaign

Here’s how it works:

o Instagram users go to Nike’s PHOTOiD site, and select an Instagram shot as the background for the Nike Air Max model of their choiceo Users click a button, and Nike customizes the shoe color to match the colors in the photoo Users can share the shot over Instagram, Facebook, Twitter, and an online gallery with other Instagram/Nike customized photosoparticipants can also purchase the customized shoes

TweetAFlight

TweetAFlight is selling airline tickets, but you can be sure that if this system works, everything plus the kitchen sink will soon be for sale on Twitter. Follow @TweetAFlight on Twitter When you see a tweet for a flight you want, reply

with the word “BUY”.

That reply message to “buy” gets processed by Chirpify

The business transformation in eCommerce space

  Traditional eCommerce Social eCommerceImplementation Dynamics Inventory Management &

traditional supply chainResource optimization with delayed integration

Business Case Merchants develop online store with a channel to pay online

Retailers provide online store with plug-ins for users to compare, buy & share experience

Business Processes Branding, Marketing & Sales Create awareness, engage & retain

Choice Of Products Comparison buying is not possible Comparison buying is possible

Financial transactions Physical financial transaction with limited options & offers

Multiple payment options with various loyalty programs, reqards & offers

Cost Higher LowerReliability Based on brand value Higher, references by known

circle of peopleFlexibility Lower, resources available from only

one inventoryHigher, resources available from multiple marketplaces

Frequency of Transactions Smaller frequency with higher value per transaction

Mass market but lower value per transaction

Social Commerce : Transformation of eCommerce with Social Computing

Challenges on the way of transformation

• Social Network is private space

• Social space is not to be used primarily to ask for Buying

• Push for ‘Buy’ sometimes treated as a negative signal

• Stay simple during the changing trends & stiff competition

**Forrester's research report says 36% people dont like to receive mails even from their most favorite retailer

Social Commerce : Transformation of eCommerce with Social Computing

References

http://commandpartners.com

www.topsy.com

www.rapidmarketplace.com