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An industry insider shares insight about today’s evolving e-commerce world where consumers want authentic, personalized experiences and expect direct engagement with brands.
October 7, 2024
By: Christine Esposito
Editor-in-Chief
Social selling and social shopping aren’t new, but they are evolving.
Last month, Tupperware filed for bankruptcy. The company created its billion-dollar business with “social” shopping—an army of women who host parties in their living room where friends, family and neighbors check out the goods (and maybe hear some gossip). Earlier this year, Rodan + Fields announced a shift away from multi-level marketing (MLM).
On TikTok, users’ feeds are filled with complete strangers who rhapsodize or demonize beauty products and consumers can easily learn about and shop for those items.
Even one of the biggest players in online retail is getting into the game. In August, Amazon announced that users could “seamlessly” discover and purchase their favorite products from Amazon directly within the TikTok app. Amazon ads placed on TikTok enable users to complete product purchases with Amazon in TikTok’s native environment. Earlier in the year, Amazon announced a similar scheme with Pinterest.
If anything, change has been the one constant in the realm of social selling and social shopping.
To get more insight about the state of affairs, we connected with Kaveh Vahdat, founder and president of RiseOpp, a boutique digital marketing agency with a focus on fractional CMO services and SEO services. Vahdat’s company integrates advanced strategies in social selling and social shopping to “empower brands to effectively engage with consumers on social media platforms and adapt to the evolving landscape of digital commerce.”
Happi: What is the state of social selling in 2024?
Kaveh Vahdat: A vital strategy where brands leverage personalized interactions and seamless e-commerce features on social media platforms—such as TikTok Shop, Instagram Checkout and Facebook Shops—that blend smoothly into people’s daily social media use.
Happi: How do you define social shopping, and is it different from social selling?
KV: From my perspective, social shopping is the experience where consumers discover, evaluate and purchase products directly within social media platforms, influenced by peer recommendations, influencer endorsements and interactive content like live streams and AR try-ons. It seamlessly integrates the shopping process into the social activities people already engage in on these platforms.
Social selling, on the other hand, is a strategy used by brands and sales professionals to engage potential customers on social networks. It involves building relationships, sharing valuable content and guiding prospects through the sales funnel. While social shopping focuses on enhancing the consumer’s buying journey, social selling emphasizes how brands connect with and influence consumers to drive sales.
Happi: How has the concept of social selling changed over time, and what’s been the cause of this change?
KV: Social selling has evolved from simply posting product promotions on social media to building meaningful relationships with consumers through personalized engagement. Initially, brands used social media primarily for broadcasting messages, but now the focus is on two-way interaction and providing value beyond the product itself. This shift has been caused by several factors: changing consumer expectations, technological advancements, the rise of influencer marketing and the impact of the covid-19 pandemic.
Consumers now seek authentic, personalized experiences and expect brands to engage with them directly. Innovations in artificial intelligence, data analytics and social media features have enabled more targeted and effective engagement strategies. Influencers have become integral in shaping consumer opinions, prompting brands to collaborate for greater reach and trust. Additionally, the pandemic accelerated digital adoption, making online engagement and social selling more critical than ever.
Happi: Can we talk about Rodan + Fields’ shift away from MLM social selling? Do you see more of this ahead in the future?
KV: This potential shift reflects a broader industry trend where companies are rethinking the MLM approach due to consumer skepticism, a desire for transparency and digital opportunities. Growing wariness of MLM practices has led consumers to prefer direct and transparent purchasing options. Advances in e-commerce and social media allow brands to reach consumers directly without intermediaries.
I anticipate that more companies may move away from traditional MLM structures in favor of models that offer greater transparency and direct engagement, aligning with evolving consumer preferences.
Happi: Can social shopping be a successful strategy in other categories, specifically household cleaning?
KV: Yes, social shopping can be successful in the household cleaning category. Consumers are increasingly interested in the effectiveness, safety and environmental impact of cleaning products. Social media platforms provide an excellent avenue to demonstrate product usage through videos and tutorials, share customer testimonials and engage directly with consumers. By offering valuable content and easy purchasing options, brands can meet the demand for convenience and informed decision-making in this sector.
Happi: What are some key takeaways brands should hold onto as 2025 nears?
KV: Here are five….
Embrace personalization—tailor marketing and product offerings to individual consumer preferences using data-driven insights.
Adopt emerging technologies—integrate AI, AR and chatbots to enhance customer engagement and streamline the shopping experience.
Prioritize authenticity—build genuine relationships with consumers through transparent business practices.
Optimize for mobile commerce—ensure all content and shopping experiences are seamless on mobile devices, as mobile shopping continues to rise.
Leverage social commerce features–utilize in-app shopping tools on social platforms to simplify the purchase process.
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