The Growth Of The E-commerce Industry As A Result Of Social Media
With the growth of social media, the connectivity and communication that we experience have improved on a significant level. Social media platforms have become so popular that it has become the norm to be on at least one of them to stay in touch. Everyone who uses the internet either uses social media or gets some form of information from it, which is why it had become such a widespread medium. For industries and businesses, the potential for growth that they have witnessed as a result of this is phenomenal. Brands are now able to connect with people from all over the world and partake in global expansion without even leaving their home country. The opportunities in this regard are endless, which is why social media has come up as such a valuable opportunity in today’s society.
The E-commerce industry, in particular, is one that has greatly benefitted from the improvements to social media over the past few years. Because this industry was already functioning through the internet, the evolution of social media only supplemented these brands and companies. Here are some of the ways in which social media has helped the growth companies within the E-commerce industry
Larger Customer Base
One of the first ways in which the e-commerce industry saw an incredible boom was concerning their customers and their potential audiences. Before the dawn of social media, ordinary people would use the internet only for things like checking their email, finding information or to shop from an online store. Logging into the web just to keep up to date with your friends wasn’t exactly a norm, which is what sometimes limited the exposure that brands received. With social media, however, the amount of time that people spend on the internet increased significantly, and people were logging on just to check up on the happenings on these popular sites. As a result of increased internet usage, the number of people who found it convenient to shop online also started increasing. They began to build trust in virtual sources and started sheddings the opinions that were previously held about online shopping.
Globalized Expansion
One of the key reasons why social media sites were developed was with the intention of helping people connect, regardless of which part of the globe they lived in. People now had opportunities to form lasting connections regardless of geographic and linguistic barriers. Because of this, brands were also able to achieve the global expansion that would have otherwise been difficult. In the 1980s for example, if a store wanted to sell their clothing to people in another country, they would have to conduct manual market research, set up a store in a particular location and pay for the cost of transportation of goods. Smaller companies would find it a lot harder to reach those audiences, even if there was an incredible amount of potential in them. Today, those hurdles have been reduced. Online stores can have just one site from which people around the world can conveniently browse as they like. The cost of expanding to another country has significantly reduced, and globalized economies are now experiencing a steady rise.
Influencing Purchases
One of the biggest things that social media has brought forward for brands is the ability to influence customers and their buying patterns. Word of mouth can be a powerful tool, and when coming from someone who is well regarded in the community, brands can expect to see a sudden alteration in the products that people buy. ASOS is one shining example of this. The brand, which had been in operation since 2000 had been seeing a constant drop in their sales over time. The brand needed a few years to get back into the consumer market and decided to enlist the help of social media influencers. As soon as Instagram and Snapchat started to become more popular, the brand partnered up with a few notable fashion icons and social media starts to help them promote their clothing. The brand then started seeing an incredible boost in their sales. By partnering up with well-known influencers, the brand was able to get the attention of those who followed these accounts, thereby influencing their decisions to purchase from the brand.
Better Advertising
Good advertising has always been the best way in which a brand can reach better audiences, and with social media, the potential that brands have in this regard is enormous. One of the reasons for this is the targeted nature of ads on social media. In the past, brands would have to rely on billboard spaces and magazine prints to reach audiences. Even in these situations, the density of potential customers would be far less than what a brand would ideally want. With social media, brands were able to reach the exact people that they needed, and who would be potentially interested in buying their products. Social media advertising is also supplemented by the availability of apps and tools that make this entire process significantly easier. The presence that a brand has to the relevant market is also something that is incredibly beneficial for the overall sales that it experiences. Brands who are targeted to the right audiences can have a stronger presence to those who matter, thereby cementing their position within their particular category. This presence can also enable people to visit the site of the brand easily and engage in the products that it has to offer.
Overall, social media has proven to be an invaluable tool to brands across the world, enabling them to reach avenues that they couldn’t before.
