Social commerce has created a buzz in the online selling segment. In the United States, it gained momentum during the COVID-19 lockdown since people spent hours on social media during their extended stay at home. Sellers and advertisers were driven to these social media platforms to popularize their products and reach out to their target audience. Today, sellers are advertising and selling products through social platforms like TikTok Shop.
While the latest generations are spending most of their hours on social media, sellers in the US gained 26 percent in sales in the year 2024 just through mobile commerce. Furthermore, social media suggestions lead 61 percent of online shoppers in the US to look for new brands or products. With the given numbers, the sales of TikTok Shop USA are forecasted to show an upward trend, surpassing the $100 billion mark by the end of 2026. There are various reasons why this market is projecting such a boom:
Wider Audience Reach
Reaching out to the target audience is the most crucial task of any business owner. Given the wide user base of social media platforms, reaching out becomes much easier with social commerce.
Better Conversion Rates
If we compare the conversion rates of e-commerce and social commerce websites, social commerce will appear as an easy winner, with credit going to affiliate marketing and influencer marketing. As per data, 32 percent of Gen Z and 21 percent of Millennials purchase based on influencer recommendations. Hence, the buying behavior of the latest generation highlights that they are better convinced with user-generated content (UGC), which adds to the conversion rate.
Data-Driven Approach
Social media platforms provide insightful data on users' social and shopping habits. Gen Z and Gen Alphas are constantly active on social platforms, updating about their lives. Sellers can have insights into their social profiles to customize offers and products according to their target audience.
A Step-Ahead of Traditional E-commerce
Traditional e-commerce only gives sellers access to the audience looking for specific products. On the other hand, TikTok Affiliate Marketing allows the seller to lure the customer to their product through different videos and UGC. TikTok Shop adds to the market and audience, who can be your prospective customers.
Low Cart Abandonment
E-commerce companies are losing about $18 billion annually because of cart abandonment. This happens when people add products to their online carts on e-commerce websites and forget them eventually. On the other hand, social commerce has very low cart abandonment due to intuitive shopping opportunities, quick payments, and instant replies from customer support.
Leading Factors TikTok Shop is Ruling The USA Market
TikTok Shop is ruling the US market when it comes to Social Commerce. It hosts more stores than other social platforms. In addition to this, it allows one-click payment, which further simplifies the buying process for the viewers. Here are the reasons why TikTok Shop is ruling the US social consumer market:
Supportive Algorithm
The algorithm is such that it prioritizes paying advertisers over non-paying. Then comes the content with better engagement. The product content, on the other hand, is boosted just like TikTok content. Also, the algorithm continuously feeds consumers the kind of content they like, increasing their watch time and purchasing tendency.
Using Social Commerce as an Advertising Platform
Gen Z and Millennials use TikTok daily for hours of scrolling. Also, they are the majority of consumers. Hence, reaching out to them becomes easy through these applications. Marketing can be done while giving out tips and tricks to the consumers, in any kind of creative marketing content.
Integration with Amazon MCF/FBA
Sellers can also integrate TikTok Shop with Amazon using Amazon MCF by WebBee. This will help the seller to connect the two platforms, further helping them to manage the orders, delivery, and inventory management. Not just this, the application can perform various other functions that can help you scale your online business. The experts from WebBee Global will help you set up your social commerce for success.
Preference For TikTok Shop As Social Commerce
Now, you have all the right reasons to move to TikTok Shop as your preferred social commerce platform. It will not just give you reach and better conversion rates but will also help you lure customers who might not be looking for your products originally. In addition to this, TikTok Shop integration with Amazon will help you with easier fulfillment and better inventory management. So wait no more and step forward with social commerce to build your successful online business.
