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4 Reasons Why Social Media Is Important for E-commerce

Four biggest social media platforms for e-commerce companies

Social media has changed how we interact with our loved ones. It’s doing the same, at a rapid pace, for how we discover new brands and shop for our favorite products — all without ever leaving the app.

In the last three months alone, 41% of consumers stumbled upon a product on social media, reflecting a 14% year-on-year increase.

If you correctly strategize and execute your brand on social media, you can spike up your conversion rate, boost brand recognition, and (of course) increase sales — in a cost-effective way.

In this article, we explore the four main ways social media is important for your e-commerce business. Let’s dive in!

Table of Contents
4 reasons why social media is important for e-commerce
Wrapping up

4 reasons why social media is important for e-commerce

1. Increases brand trust and credibility

Social media opens up a doorway for e-commerce businesses to multiple tactics like paid ads and influencer marketing. By using targeted ads and partnering with the right influencers, brands can deeply connect with their ideal customers, get more visibility, and build up solid brand recognition, which only helps them score more sales and thicken the customer base.

When followers engage with and share content (user-generated content) related to a particular brand, it reaches a wider audience, resulting in increased exposure and potential customer acquisition. This organic approach toward promotion can be highly effective, as it relies on genuine enthusiasm and endorsement from existing customers or fans.

Customers interacting with a company’s social media content

Furthermore, social media platforms provide an ideal environment for direct customer interaction. E-commerce brands can actively engage with their audience by responding to inquiries in real-time, providing assistance, and delivering excellent customer service. 

By doing so, these brands establish trust, showcase their commitment to customer satisfaction, and breed a sense of transparency. This level of engagement can go a long way in building brand loyalty and attracting new customers.

In addition to direct interactions, social media also facilitates the sharing of reviews and feedback from customers. Positive reviews and testimonials serve as valuable social proof, enhancing the brand’s credibility. When potential customers see positive experiences shared by others, it boosts their confidence and encourages them to make a purchase.

Also, by regularly sharing updates, responding to comments, and providing relevant information, brands can establish themselves as reliable and go-to sources in their respective industries. This helps build a strong bond with their audience and encourages repeat purchases and brand advocacy.

2. Drives website traffic and boosts sales

Social media, much like SEO content, has become one of the top three sources of website traffic.

As per HubSpot, social media accounted for 16% of traffic generated by e-commerce websites in 2022.

Platforms like Facebook and Instagram provide powerful tools for businesses to create and run ads that specifically reach their desired audience. By crafting compelling ad content and utilizing persuasive call-to-action (CTA) buttons and links, brands can entice users to click and visit their websites. 

These ads can be customized based on demographics, interests, and online behaviors, ensuring that they’re reaching the most relevant potential customers.

A girl exploring a product by clicking on a paid ad

By regularly posting valuable and engaging organic content on social media platforms, e-commerce brands can attract followers to explore their landing page(s). This content can include product showcases, informative blog posts, how-to guides, infographics, or entertaining videos. By sharing content that aligns with their target audience’s interests and needs, brands can build a loyal following and increase website traffic.

Plus, social media platforms offer various features that enable e-commerce businesses to reach a wider audience and generate leads. 

For example, Instagram provides short-form content options like Reels, which allow brands to create catchy and visually appealing 60-second videos. These Reels can showcase products, highlight promotions, or share useful tips, capturing the attention of users and directing it to their website or product page. 

Additionally, live session giveaways can create excitement and attract users, as they offer the chance to win prizes while engaging in real-time with the brand’s content.

Social media equips e-commerce companies to provide real-time customer support. This, in turn, leads to satisfied customers, who are more likely to return for repeat purchases and recommend the brand to others. The positive word-of-mouth generated through social media interactions can significantly contribute to increased website traffic and sales.

3. Provides valuable customer insights

Social media dishes out tons of key data and insights that can help e-commerce brands figure out the best game plan and make some smart decisions.

Most social media platforms provide detailed analytics that reveal how users interact with brand content. Metrics such as likes, comments, shares, and click-through rates offer insights into the effectiveness of marketing campaigns, the popularity of specific products or promotions, and the overall engagement levels of the audience. By studying these metrics, e-commerce brands can identify patterns, trends, and areas for improvement.

Two employees understanding customer insights

By monitoring conversations, mentions, and hashtags related to their brand or industry, businesses can gain real-time insights into what customers are saying and feeling. 

This information allows brands to identify emerging trends, address concerns or issues promptly, and identify new opportunities for product development or marketing initiatives. Social listening enables brands to stay connected with their audience and tailor their offerings to meet their evolving needs.

Through comments, direct messages, and reviews, brands can gather insights into customer experiences, satisfaction levels, and pain points. This feedback provides actionable information that brands can use to improve their products, services, and customer support

By addressing customer concerns and implementing changes based on their feedback, e-commerce businesses can enhance the overall customer experience and loyalty.

By leveraging the data and insights obtained from social media, e-commerce brands can make informed decisions that drive revenue growth. Understanding customer behavior and preferences allows brands to tailor their marketing campaigns, refine their product offerings, and optimize their customer journey. 

By delivering personalized and relevant experiences, businesses can attract and retain loyal customers, thereby generating more revenue.

4. Helps sell products in-app

Instagram and Facebook allow brands to tag products directly in their posts, providing a visual representation of the product along with its details and price:

When users come across these posts, they can click on the tags to learn more about the product and make a purchase with just a few taps — all without leaving the app. 

This eliminates the need for customers to search for the product on the brand’s website or navigate through multiple pages to complete the purchase. Shoppable posts offer a seamless and frictionless buying process, enhancing convenience and reducing the likelihood of customers abandoning their carts.

A girl buying products in-app

Interestingly, some social media platforms, such as Instagram, also offer in-app checkout features:

Using this, customers can complete their purchases directly within the social media platform without the need to redirect to an external website. 

This feature further streamlines the buying process by eliminating additional steps and simplifying the transaction. Customers can select the product, choose options like size or color, enter their payment information, and complete the purchase, all within the social media app.

In-app checkout offers a high level of convenience and immediacy, catering to the growing demand for instant gratification in online shopping.

By leveraging these handy buying features, e-commerce brands can provide customers with a seamless and hassle-free purchasing experience. The convenience of being able to browse and buy products without leaving the social media platform not only enhances customer satisfaction but also reduces the risk of customers dropping off during the buying process. It maximizes the chances of impulse purchases and encourages customers to take immediate action on their buying intent.

Wrapping up

Social media’s impact goes beyond mere brand awareness and reaches the core of customer engagement and conversion for e-commerce businesses. The four reasons discussed above demonstrate that it can bring true dollar-benefit to your company instead of just being a platform where you post company updates. 

Brands can effectively connect with their target audience, build trust, provide top-notch customer service to earn their loyalty, and drive consistent sales.

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