No longer limited to networking and checking in on friends from high school, social media has turned into a profit platform where small businesses can find new customers, make an impact, and make sales.
Here’s why social media has grown into a commerce powerhouse:
Social Media Usage
To say social media is popular is a vast understatement; it’s estimated that there are around 4.8 billion social media users worldwide and that 92.7% of internet users are also social media users. The sheer volume of people logging into the likes of Facebook or Instagram empowers small businesses to connect with potential customers all around the globe, customers no brick-and-mortar store could reach.
Social Media’s Influence on Purchasing Decisions
Social media platforms allow people to purchase goods and services directly (more on that below), but also influence shopping decisions on-site and off. A 2023 survey found that 58% of US shoppers had purchased a product after hearing about it on social media (either online or in-store). In the UK, 44% of those surveyed said the same, while 40% of those in Germany agreed. These numbers are set only to increase.
Buying Directly From Social Media
Of course, many consumers also buy directly from social media platforms. Between 2021 and 2023, US “social” shoppers shot up from 97 million to 107 million. By 2028, the gross merchandise value of social commerce is expected to land somewhere around 150 billion dollars, twice the 2024 estimated value.
What This All Means for Small Businesses
Social media shopping is much more convenient than traditional shopping, particularly during the holidays when finding a parking spot is an adventure in patience. However, the benefits aren’t limited to consumers shopping in the comfort of their homes; social media also gives small businesses a place to shine.
Unlike corporate brands shoppers have heard of, such as Apple and Pepsi, social media empowers small brands to introduce themselves to consumers. It allows them to show potential customers and clients what their product or service can do while tapping into the natural human desire to shop small. After all, most people prefer to buy from mom-and-pop shops rather than wealthy corporations.
With social media, small businesses can quickly market themselves, promoting their brand on days like Small Business Saturday and all year. This makes Instagram, X, Facebook, and the like a must-use for small companies everywhere.
Social media is becoming an increasingly important tool, not only from a marketing standpoint but also from a marketplace standpoint. If you have any questions about social media or e-commerce, give us a shout; we’ll be happy to help.
The post Social Media: The New Marketplace? appeared first on SunnySide Social Media.