Social Commerce: Redefining Logistics and Fulfillment
Time to read: 7 minutes Online shopping has practically integrated itself into our daily lives. Its rise is creating a new trend called social commerce that’s changing the way people buy and sell goods online.
This idea combines social media and eCommerce, allowing businesses to increase the visibility of their products and draw in new clients. Companies must know how social commerce affects their logistical operations as it grows in popularity.
Table Of Contents
A subcategory of eCommerce, social commerce is a rapidly expanding sales channel that covers transactions happening entirely within social media platforms.
Social commerce, also called social shopping, gives consumers a smooth, streamlined experience by letting them find and buy products promoted on social media. They can go from discovery to purchase without leaving the social media platform.
Retailers can now use specialized social commerce solutions from leading social media sites. This includes popular social media networks like Facebook, Instagram, Pinterest, and TikTok. You can establish digital stores inside these platforms by utilizing these capabilities. Consumers may browse, purchase, and receive goods directly from these stores without visiting another website.
In the past, the term “social commerce” was used in a much broader sense. It could be used to classify any transactions triggered by an organic social media presence or advertising campaigns for a business.
Others gave a more precise definition. It’s only used to describe situations where potential consumers can connect or get assistance from social networks. A clear example is having the brand respond to customer inquiries via chat.
Social commerce and eCommerce are not the same kind of sales. Despite being online, e-commerce refers to online or mobile shopping using a branded app or website. Typically, Shopify or other eCommerce platforms are used to build these websites. To visit these sites, customers can use any internet-enabled device, such as a tablet, smartphone, or desktop computer,
As mentioned earlier, social commerce is a subset of eCommerce that extensively uses social media sites like Facebook and Instagram for marketing and selling goods and services.
Social commerce is a promising avenue for many eCommerce businesses to reach more customers. Make sure your supply chain can support you and grow to whatever size you require before you go in. It’s a bad idea to jump on the social commerce bandwagon and discover that your logistics can’t handle it. The right approach and strategy to supply chain resiliency will provide you with exciting opportunities with social commerce.
The Potential of Social Commerce
The explosive growth of social media usage has contributed to the emergence of this creative retail strategy. Customers are purchasing items where they spend most of their time online.
Social network sales represented 18.5% of all online sales in 2023 and are projected to reach over $8 billion in revenue by 2030. Growth is being driven by Gen Z and Millennial customers, who by 2025 are expected to account for 62% of worldwide spending on social commerce. Regarding product categories, accessories, clothing, cosmetics, home décor, and consumer goods generate the most revenue for retailer brands.
Social commerce is changing the game and providing new opportunities for small enterprises and individual sellers. Regarding online shopping, 59% of social commerce customers prefer to buy from small businesses. Additionally, 44% of buyers are more inclined to try a brand they have never heard of. It proves that these platforms have the potential to expand the market.
The projected twofold increase in expenditure per buyer between 2023 and 2027 is evidence of the persistence of social shopping, which focuses more on sales growth than new customer acquisition.
Social media has raised the bar for advertising. Marketing has never been more focused on customer engagement and interaction. As a direct-to-consumer (D2C) retailer, there are many ways to connect with your customers through social media platforms. However, social media marketing also needs a different approach. The platforms’ ad managers allow for highly accurate identification of target audiences. However, you must be creative to get potential buyers to read through to the end of your content.
It would help to be careful when interacting with your social media following and pushing people to promote material as an online retailer. Many opportunities exist here, particularly for tiny direct-to-consumer retailers with smaller marketing budgets. You can dramatically expand your organic (and hence cost-effective) reach with engaging, shareable content to your target demographic.
Working with influencers is a good option for many companies looking to reach a broad audience and make a significant impact. Influencers in branded advertising breathe life into your items. Along with influencers, niche items can also be handled effectively. With the help of “micro-influencers,” you can connect with even the most unusual target audiences.
Customers can also become multipliers in social commerce. For this reason, providing an outstanding sales experience is just as important as providing a fantastic product. This covers every step of the method, from the initial click to a seamless and open fulfillment procedure to the unpacking encounter. Since satisfied customers are more likely to tell their community about their experience and, consequently, your goods.
Upgrading Your Logistics to Keep Up with Social Commerce
Sales of social commerce products scale quickly. Thousands of SKUs can sell out in a matter of hours or days. These high sales volumes can last for several weeks or even months.
Logistics procedures for social commerce should be in place to ensure a seamless, satisfying experience for buyers and merchants.
Social commerce allows companies to connect with a broader range of customers. With millions of consumers using social media platforms daily, businesses can increase their visibility and connect with potential buyers globally.
However, this increased reach also presents logistical issues. Businesses must ensure they can fulfill delivery dates while handling increased order volumes and product shipping to numerous regions.
Businesses that engage in social commerce need to have flexible and agile logistical operations. It’ll allow them to quickly adapt to the ever-changing demands of their customers and deliver individualized service. In addition, communicating with clients via comments, private messages, and other channels allows you to effectively handle inquiries, provide prompt replies, and resolve orders with delivery issues.
The management of returns and reimbursements in reverse logistics is one of the significant roadblocks to social commerce. Since social media has allowed consumers to purchase direct products, businesses must set up effective logistics and return procedures. Logistics teams must manage returned goods and ensure customers have a positive online experience.
A successful logistical infrastructure is the cornerstone of social commerce success. They directly impact the customer experience, making or breaking a company’s reputation and client loyalty. Here are must-haves of any logistics that cater to social commerce.
Distribution Hubs Close to Customers
Your fulfillment network should include many node fulfillment centers and e to consolidate inventory for multi-channel distribution. Social consumers are used to fast deliveries. Thus, your business must be able to transport goods quickly without charging excessive prices. Keeping goods close to consumers reduces expenses and helps satisfy their needs immediately.
A Well-coordinated Delivery Network
Fast fulfillment times are undoubtedly possible, but without strong partnerships with carriers, it cannot minimize final mile expenses and meet delivery dates. Managing transportation becomes crucial when there are sudden increases in volume and short lead times.
Make Use of Automation
Automation directly supports business scaling. Order picking, packing, and kitting times are reduced by robotic automation. It also frees up warehouse staff to work more productively. Automation systems can customize specific elements of order fulfillment to match each client’s demands for every channel.
Automation also affects systems and procedures, reducing repetitive, labor-intensive tasks to increase precision, productivity, and efficiency.
Easy-to-use Tech Integrations
Every team member should be able to understand your logistics tech solutions. Moreover, it should be simple to incorporate into your processes. It can include analytics and reporting, order management software, transportation management software, and real-time inventory visibility. To help merchants, specific third-party logistics (3PLs) provide payment and fraud solutions. Peak seasons and big-volume sales events make these tech integrations a must-have.
Collaborate with Influencers
When brands work with influencers to promote products, they must remember that the influencer’s reputation is also on the line.
Many influencers want to ensure that the brand experience they provide to their followers is consistent with their expectations and branding.
This can result in a more customized unpacking experience, possibly with influencer-provided marketing materials.
For the unboxing experience to be shared and enjoyable, your logistics partner must be able to collaborate with both you and the influencer. Adding handwritten notes or a more personal touch can be crucial for influencers, even these can be automated. Make sure your logistics operations can provide the human touch at scale.
People First Approach
It’s vital to have skilled logistics experts with knowledge of high-volume order fulfillment in today’s technologically driven society. Your business should show that their human staff are just as important as robots and technology. Human judgment, empathy, creativity, and insight throughout the order fulfillment process can drive better processes and customer satisfaction.
Social commerce is transforming how businesses engage with customers and conduct online sales. It offers more reach and options, but it also presents logistical challenges. Companies need to modify their supply chain to satisfy the needs of a larger and more varied consumer base. With social media platforms, businesses have to deal with customer relations directly and efficiently handle returns.
If companies can effectively incorporate social commerce into their business plans, they’ll be in a better position and maintain their competitiveness in the market.
ZhenHub simplifies your logistics to help you keep up with all the demands of social commerce. Connect with our global network of fulfillment centers. Track every order through our high-tech shipping software. Sign up today and upgrade your logistics processes. Contact our fulfillment experts for more details on how we streamline social commerce shipping.
