Social Commerce Revolutionizes Electronic Commerce

Victoria Frings () and Richard C. Geibel ()
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Victoria Frings: E-Commerce Institute
Richard C. Geibel: E-Commerce Institute

A chapter in Digital Management to Shape the Future, 2024, pp 97-111 from Springer

Abstract: Abstract The growing importance of constant developments in e-commerce, and thus the restructuring of the online consumer market, leaves users and companies curious about what new technologies will emerge, take hold, and promise to add value to people's lives. One important answer to this question is social commerce, a new field in e-commerce. Social commerce combines e-commerce with social media and thus exploits enormous potential in areas that are becoming increasingly important. Due to its current stage of development, social commerce is still considered by many companies to be a potential phenomenon, but one that is already actively changing the market. The added value that social commerce offers users, influencers, small businesses, and large corporations alike is transactions, sales, and the purchase of products directly via social media, as well as awareness for products or services. Customers are intercepted directly on social media and, with a proper trigger of the content from the brand and company, can directly purchase and carry out the transaction on the platform. Many companies are now investigating: in what form can these visions of the future be put into practice, and to what extent can this revolutionize the market structure in the long term? This article takes a closer look at the core of social commerce, investigates its functions, and looks at it especially in relation to the beauty industry. These research questions are examined in detail and answered through an as-is and to-be analysis and illustrated using the beauty industry as an example. The selected industry is considered a pioneer of digital innovations and can also serve as a case study for other segments in this field. This article shows that social commerce is restructuring and revolutionizing the consumer market. Social commerce offers enormous added value for companies and users. It adapts to changing consumer behavior by shifting power from companies to consumers, benefiting users and enabling companies to increase reach and sales. At the same time, this new, very complex area must be actively shaped and organized, and in doing so, it is essential to avoid costly mistakes and prevent incorrect developments.

Keywords: Social commerce; eCommerce; Customer journey; Customer moment; Social media (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-66517-2_8

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DOI: 10.1007/978-3-031-66517-2_8

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