Is social commerce dead in the water?

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NEW YORK: Only 1.5% of all retailer e-commerce transactions come via social media, raising questions as to the value of investment in social commerce, according to a report in Brit site Warc.

The figure is based on an analysis of some US$100bn in sales among 500 million shoppers during the first quarter by Custora, an e-commerce vendor, and represents a slight decline on the 1.8% of sales that social media accounted for over the November-December holiday period.

Not surprisingly, Facebook dominated this area, taking 81% of sales, followed by Pinterest (10.8%), while Instagram, YouTube and Twitter taken together made up 5.2% of the total.

Long-standing techniques such as search, email and affiliate marketing made up the majority of marketing-led retail transactions, accounting for 70%, with display ads, text messages and push notifications taking another 8.5%.

Around one fifth (20%) of sales were impulse and not attributed to any marketing.

“If you’re looking on a last-click basis, there’s been no movement in terms of social media platforms,” according to Claude de Jocas, a lead analyst at digital research firm L2.”

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