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S
Impact of Social
Media on
E-Commerce
Facts!
Tweets analysis & comparison
Some trends…
S Connecting customers and companies in new and exciting ways.
eg.flipkart, myntra (segmented discounts), facebook likes.
S Professionals in the e-commerce industry have seen a shift towards social
sharing in the past few years
S The more they click the more they buy
S 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”
S Twitter - $26.12
S Facebook - $16.31
S Email - $13.58
S Want - $10.21
S Google Plus - $4.71
S Facebook “Like” - $4.56
S Stumble Upon - $4.30
S Kaboodle - $3.60
Other revenue sharing
partners..
Sharing Revenue By Browser
S Google Chrome - 36.61%
S Internet Explorer - 21.75%
S Mozilla Firefox - 16.75%
S Safari - 8.24%
Sharing By Device
S Tablet - 4.5%
S Mobile - 3.21%
S 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
S Social Commerce : Transformation of eCommerce with Social Computing
Product
Discovery
• Awareness
• Index
Product
Selection
• Decision
Support
Product
Referral
• Evangelism
• Referrals
People Talk
3. Share on Twitter
4. Share via Email
5. 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 choice
o Users click a button, and Nike customizes the shoe color to
match the colors in the photo
o Users can share the shot over Instagram, Facebook, Twitter,
and an online gallery with other Instagram/Nike customized photos
oparticipants can also purchase the customized shoes
TweetAFlight
S 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.
S Follow @TweetAFlight on Twitter
S When you see a tweet for a flight you want, reply with the
word “BUY”.
S That reply message to “buy” gets processed by Chirpify
The business transformation in
eCommerce space
Traditional eCommerce Social eCommerce
Implementation Dynamics Inventory Management &
traditional supply chain
Resource 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 Lower
Reliability Based on brand value Higher, references by known
circle of people
Flexibility Lower, resources available from only
one inventory
Higher, resources available from
multiple marketplaces
Frequency of Transactions Smaller frequency with higher value
per transaction
Mass market but lower value per
transactionS 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
S Social Commerce : Transformation of eCommerce with Social Computing
References
S http://commandpartners.com
S www.topsy.com
S www.rapidmarketplace.com

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Impact of Social Media on E-Commerce

  • 1. S Impact of Social Media on E-Commerce
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. Tweets analysis & comparison
  • 16. Some trends… S Connecting customers and companies in new and exciting ways. eg.flipkart, myntra (segmented discounts), facebook likes. S Professionals in the e-commerce industry have seen a shift towards social sharing in the past few years S The more they click the more they buy S 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.
  • 17. How do social media share the revenue…? Assisted Revenue Per Share, Example - “Someone tweets a product and then places an order” S Twitter - $26.12 S Facebook - $16.31 S Email - $13.58 S Want - $10.21 S Google Plus - $4.71 S Facebook “Like” - $4.56 S Stumble Upon - $4.30 S Kaboodle - $3.60
  • 18. Other revenue sharing partners.. Sharing Revenue By Browser S Google Chrome - 36.61% S Internet Explorer - 21.75% S Mozilla Firefox - 16.75% S Safari - 8.24% Sharing By Device S Tablet - 4.5% S Mobile - 3.21% S Desktop - 92.29%
  • 19. What is Social Commerce ???
  • 22. The conversation has moved. It’s now online.
  • 23.
  • 24. S Ecommerce (Buying & Selling Online) Social Media (Online Media Supporting Social Interacion and User Generated Content) Social Commerce (Linking Social Media and Ecommerce)
  • 25. Social Media: Fuel for your sales engine 72% of retailers plan to spend more on marketing via social networks this year than in 2013
  • 26. Transformation - Multiply sales through recommendation • Only awareness does not bring revenues • Repeat business and referrals generate business • Existing customers work as Marketing partners S Social Commerce : Transformation of eCommerce with Social Computing Product Discovery • Awareness • Index Product Selection • Decision Support Product Referral • Evangelism • Referrals
  • 28.
  • 29. 3. Share on Twitter 4. Share via Email 5. Algorithm 1. Share Your Purchase: Facebook 2. Post to Facebook Wall
  • 30. S Your Ecommerce Site Visitors Share Products or Purchases Friends/ Followers: Click Links and Share more Increased Sales, Higher Conversions, More Referrals
  • 31. 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 choice o Users click a button, and Nike customizes the shoe color to match the colors in the photo o Users can share the shot over Instagram, Facebook, Twitter, and an online gallery with other Instagram/Nike customized photos oparticipants can also purchase the customized shoes
  • 32. TweetAFlight S 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. S Follow @TweetAFlight on Twitter S When you see a tweet for a flight you want, reply with the word “BUY”. S That reply message to “buy” gets processed by Chirpify
  • 33. The business transformation in eCommerce space Traditional eCommerce Social eCommerce Implementation Dynamics Inventory Management & traditional supply chain Resource 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 Lower Reliability Based on brand value Higher, references by known circle of people Flexibility Lower, resources available from only one inventory Higher, resources available from multiple marketplaces Frequency of Transactions Smaller frequency with higher value per transaction Mass market but lower value per transactionS Social Commerce : Transformation of eCommerce with Social Computing
  • 34. 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 S Social Commerce : Transformation of eCommerce with Social Computing