Social Commerce

Social Commerce

Dr. Nitin Walia

26 February 2013

Mohammed Alatawi

Social commerce as defined on Wikipedia is “a subset of electronic commerce that involves using social media, online media that supports social interaction, and user contributions to assist in the online buying and selling of products and services.” So Social commerce is a part of E-commerce that is being formed and developed as a concept based on the interaction between users of social networking websites, in which they are sharing, suggesting, and reviewing their thoughts about products and services. All in encouraging and motivating environment for both consumers and sellers. In other words, it is the way that business can use customer’s rational feedback on a product or service that he bought; to contribute in the marketing process of that business.

Social commerce is important for business’s leaders, as it gives them a tool that maximizes their ability to understand customers’ needs, opinions and even emotions in real-time interaction. It also gives them the chance to overreach their direct customer onto his online community; family, friends and relatives through the social media websites. Social commerce can be utilized to reduce marketing costs as well, by investing less money in the technology rather than the traditional marketing methods. It also enables business’s leaders to evaluate and adjust the market strategy in much effective and efficient way.

In fact, the customer review concept is the most important part of Social commerce. A business leader who does not pay enough attention to this key part of online shopping, is on risk to lose many of his potential customers. Moreover, the consequences might be worse than that if the customers left bad reviews on his product or service. According to barnraisersllc.com, (a social media solutions company,) 85% of consumers are looking for an independent review prior to make their decision to buy product or service, 78% of people trust the...