PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

E-commerce Goes Multiverse 

Galia Beer-Gabel by Galia Beer-Gabel
September 10, 2021
in E-commerce, Featured Content, Industry Opinions
0
E-commerce Goes Multiverse 

E-commerce Digital Internet Technology Web Concept

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

E-commerce is on the rise. Its growth is driving the rapid development of new ways for e-commerce sellers to engage with their customers and, in turn, the rapid rise of technological changes to meet these needs. The next key opportunity is how to support e-commerce sellers to improve and manage their businesses and drive more sales across multiple platforms. 

The convergence of social media and technology

With the shift to multiple selling venues, and especially direct to consumer (DTC), sellers are coping with a new set of challenges primarily around fulfillment and the need to own customer relationships. Leveraging the power of social media is an obvious way to tackle customer acquisition and retention. Until recently, this was accomplished mostly by sellers placing ads on social media platforms. However, a closer collaboration between the sellers and the social media platforms holds even greater potential.

Here comes social commerce. According to eMarketer, social commerce, the process of integrating the shopping experience directly into social media channels (not just displaying adverts) is expected to rise by 35% in 2021 to $36 billion. This follows similar growth in 2020, surpassing previous projections. 

Social commerce enables e-sellers to leverage social media platforms’ ability to personalize the experience, which translates into higher conversion rates. Social media platforms benefit from valuable consumer data while keeping the customers on their platform. This has led these platforms to prioritize payment and shopping options for consumers to increase customer demand. But it is also driving increased competition among the platforms: Instagram, TikTok and Pinterest have all announced new e-commerce features for DTC brands to attract sellers to onboard with them. 

Social media platforms are partnering with e-commerce platforms to attract more sellers and to help them target potential customers directly via social media. A notable recent announcement is Facebook’s launch of Facebook Shops. Facebook is partnering with Shopify, among others, to facilitate its 1.7 million DTC sellers to seamlessly sell via Facebook. 

Social media’s partnership with e-commerce platforms will result in increased revenues for all players because of an easier, better experience for consumers and an operational ease for the sellers.  

Google becomes a marketplace

Social media platforms still lack one very important feature – strong search functionality. This is where Google steps in. Its unique ability to combine user data with search functionality and strategic thinking is driving increased revenues via advertising. In the quarter ending 2020, Google’s search and ad revenue was $31.9 billion, up from $27.2 billion the previous quarter. 

Google is leveraging its technology and strong relationships with consumers to overcome its biggest challenge – attracting e-commerce sellers. While Amazon currently has the largest share of product searches, with 54% of the market, Google has 1 billion daily shopping searches and 3 billion Android devices around the world and is rapidly implementing partnerships and solutions. In 2020, Google slashed all commission fees for merchants who list with Google Shopping, leading to a sharp increase in seller activity. Similar to Facebook, Google also partnered with e-commerce merchants’ platforms to bring more merchants to Google Shopping, and it has announced partnerships with Shopify, WooCommerce, GoDaddy and Square.

Google is also improving its offering for merchants and their customers. Earlier this year, it announced new ways for brands to personalize their listings, including lifestyle imagery and video. This is on top of its planned augmented reality virtual try-on feature for fashion products. With these recent moves, Google is becoming a major e-commerce marketplace – without actually officially becoming one. 

The jury is still out

Amazon, naturally, is working to stay relevant and keep its sellers in this highly competitive market. After last year’s acquisition of Selz, a Shopify competitor, it reduced transaction fees to 5% from the typical 15% for brands that direct the shopper to Amazon instead of the brand’s e-commerce website.

Yet Amazon, Google and Facebook might be more restricted in their activities in the future as they are all under unprecedented attack from governments and regulations in the US and Europe.

E-commerce sellers as customers 

Marketplaces and other providers are shifting their attention to sellers. The decade of the buyer is giving way to the decade of the merchant. 

The experience and convenience for the seller will become increasingly important as consumers become less loyal to the platforms and more interested in the shopping experience. Platforms that adapt to the needs of the seller in terms of marketing, technology, payments, logistics and multi-channel integration will differentiate themselves. Google, Facebook and other social media platforms are set to redefine the world of online shopping, capturing market share from established players such as Amazon and Walmart as they capitalize on their massive consumer bases and integrate innovative technology that helps both e-commerce sellers and their customers. 

Tags: Direct to consumerEcommerceecommerce platformsIndustry Opinionssocial commerce
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    digital payments

    Navigating the Future: Top Digital Payment Trends to Watch

    March 31, 2023
    scams

    As Scams Become Omnipresent, New Tools Can Help FIs Fight Back

    March 30, 2023
    item clearing

    As Check Volumes Decrease, Financial Institutions Need to Consider Alternative Clearing Options

    March 29, 2023
    payments friction

    Too Much Payments Friction Can Lead to Customer Chafing

    March 28, 2023
    online fraud

    Understanding the Cost of Online Fraud and How to Prevent It

    March 27, 2023
    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result