drag2share: The New Art Of Social Commerce: How Brands And Retailers Are Converting Tweets, Pins, And Likes Into Sales
The New Art Of Social Commerce: How Brands And Retailers Are Converting Tweets, Pins, And Likes Into Sales
May 29, 2013
Two trends are converging that promise to transform social media into a viable commerce platform.
One is the rise of mobile, which means shoppers can price-compare and solicit advice from friends wherever they are. Another is the rise of the visual Web, with sites like Tumblr, Pinterest, Instagram, and Wanelo becoming repositories for shopping ideas, fashion tips, and wish lists — in essence user-generated catalogs.
The last trend is demographic. Today’s mobile-savvy consumers in their teens and early twenties are accustomed to shopping online and tend to see their smartphones and tablets as their main computing device, and an important shopping tool.
May 29, 2013
Despite the massive amount of traffic flowing to social media sites from PCs and mobile devices, users aren’t typically in a shopping mood.
That translates to low average order values (AOVs) and conversion rates once those users are referred to e-commerce sites.
The statistics on conversions and AOV vary depending on the e-commerce platform or market research firm, but they all tell pretty much the same story.
Social media accounts for a dismal .71% of conversions on eCommerce websites. The verdict is still out on whether consumers will ever become big buyers on social media. However, there is one outlier in this new market. Pinterest sent more traffic to eCommerce websites in the first quarter of 2013 than it did in the retail-heavy fourth quarter. Moreover, Pinterest users referred to a shopping website spend $80.54 on average per order — the most of any social network
79% of smartphone owners qualify as “smartphone shoppers,” says Google in new study results, using their devices to assist with shopping at least once a month. 84% of these smartphone shoppers use their devices to help them while they’re in a store, equating to about 2 in 3 smartphone owners overall using their devices in-store. [...]
Recent research has shown Google Product Listing Ads (PLAs) to outperform text ads, and new data from CPC Strategy demonstrates that since moving to PLAs, Google Shopping has performed far better when compared to Amazon Product Ads. In the second half of 2012 (H2), Google Shopping proved 32.8% more cost-effective for advertisers than Amazon Product [...]
73% of online shoppers agree that their path to purchase is more complex and less direct than it used to be, according to [pdf] an About.com study. As the traditional purchase funnel has been upended and turned into more of a “loop,” per the study, shoppers indicate that shopping has taken on a more personal [...]
Last year, Americans spent $10.7 trillion shopping.
With that much dough, you could buy over 2,000 aircraft carriers, 300 private islands, and still have money left over for a latte.
Here’s a taste of the things we bought—and how much we spent on them.
Beer: $96 billion—enough to make 199,937,239 barrels! (Brewers Association)
Pretzels: $550 million (Reuters)
Bottled Water: $11 billion (Beverage Marketing Corp.)
The data is compiled from over 3,000 merchants and almost half a billion transactions over four years.
It probably won’t surprise you that November offers the biggest discounts (an average of 5.99%), followed by post-holiday January (4.95%), but the calendar also warns you that March is a dismal time to shop if you’re looking for sales (2.76%).
The best days to buy are Tuesday and Thursday. Forget big savings on Sunday.
And new companies (just opened or under two years old) offer the biggest deals versus established ones. So don’t wait to shop at a new site.
Keep in mind that there are specific days and months that are best for particular shopping categories (see our best time to buy anything guide or this handy infographic). If you’re just planning your shopping in general, though, consider waiting until the days and months with the highest discounts.
You know how when you shop on Amazon there is a price and a then a “list price” which is usually much higher?
The effect is that you feel like you’re getting a big discount shopping on Amazon.
It turns out Amazon might be publishing list prices that are too high.
Mouse Print first noticed the problem with an array of general consumer products such as Kraft’s Mac & Cheese and a 100-count box of Splenda.
As if this afternoon, most of these prices have been fixed, except for a ton of pet food items.
Take for example the dog treats you see above. The retail value of one Merrick Flossies is approximately $4, making a 50-count supply valued at no more than $200. Yet Amazon claims the list price stands at a whopping $422.89, more than doubled what it should cost.
We tried to contact Amazon for comments, but did not receive a response.
The incident reminds us of last year when Amazon listed a seemingly normal book about flies for $23,698,655.93. Biologist Michael Eisen blogged about the unrealistic selling price, and documented how Amazon’s price for the book The Making of a Fly constantly went up day after another.
Here’s what happened: A professor required this book for a class and students naturally flocked to Amazon to purchase the text. Eventually, only two sellers still had the product available.
Because the book quickly became an exclusive, hot ticket item, Amazon’s algorithm for retailers to competitively price their product catapulted the retail value to more than $23 million.
We’re not sure if this is the same situation with the pet food offerings on the site, but it seems hard to believe the world is running out of doggie treats.
Deli Cat Dry Cat Food
Ok, we know having pets can be expensive but you can’t fool us, Amazon.
Higgins Celestial Blend Bird Food
Who can resist 89 percent off retail list price? Only ten left in stock!
Redbarn Filled Bone – Peanut Butter
Dog foods are getting so fancy these days, but at $6.70, the bone’s a steal.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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