Social Media Was The Key Differentiator For E-Commerce Sales
Internet Retailer’s recently released report highlighted that social commerce sale of North America’s top 500 online retail social media marketers grew to $3.3 billion in 2014. On average, social commerce sales increased 26% in 2014. Some of the companies also witnessed much higher sales, for instance, a personalized products e-retailer Zazzle.com reported more than 475% growth in social commerce sales.
Social media shopping increased 60% in 2013 compared to just about 17% growth in overall e-commerce market. According to the Internet Retailer’s recent report, the top 500 retailers earned $2.69 billion from social shopping in the U.S. in 2013.
Facebook Inc (NASDAQ:FB) enjoys the leadership in the social-commerce domain in terms of creating referrals and sales, mainly attributed to its massive audience. According to an estimate, about 71% of US adult internet users have signed up on Facebook.
Both social media giants Facebook and Twitter Inc (NYSE:TWTR) started testing “Buy” buttons last year to facilitate direct buying with a simple click on a retailer’s post or tweet. Facebook began testing in July, while Twitter joined the league in September. However, Facebook clearly outperforms Twitter as far translation of an e-commerce post into revenue from sales is concerned. Facebook delivers a $3.58 in revenue from sales compared to Twitter’s $0.85.
As far Average Order Value is concerned, Facebook ranks behind Polyvore and Pinterest. Customers buying through Polyvore, a fashion and style platform, spend about $66.75 per order on an average. The average consumer spending through Pinterest and Facebook amount to $65 and $55 per order.
Social media analysts at Internet Retailer tracks key social media and commerce trends at leading social media platforms, including Facebook, Twitter, YouTube and Pinterest. The 2015 database edition of Social Media 500 analyzed each web merchant on 72 metrics, including conversion rates on social traffic, monthly unique visitors from social networks and social commerce sales figures, among others.
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