According to Statista forecasts, in 2023 the volume of global retail sales via the Internet will reach 22%, for comparison – in 2019 this figure was equal to 14.1%. One of the reasons for the accelerated development of e-commerce is the growing popularity of social networks. What determines the income from online sales on top platforms?
The relationship between social media and e-commerce
According to a study of the top five social networks, based on analytics from Statista, DataReportal, Alexa.com, Sprout Social, Facebook has the highest ecommerce revenue potential, and Snapchat has the lowest. At the same time, much depends on the demographic characteristics of the audience – gender and age.
So, the profit potential of a social network is calculated taking into account 4 factors that affect the volume of online sales:
- the percentage of users who prefer to buy on a particular social network;
- the total number of platform users;
- average conversion rate;
- average order value.
By multiplying the indicators, you will get a clear idea of which platform is more profitable to sell on, depending on whether its main audience matches the target audience of your company.
Social Media and eCommerce Income: Where to Sell Better?
The table shows that of the total number of Facebook users, which is 2.7 billion, 15% make purchases. It is difficult to compare the success of the recognized leader Facebook and the following Pinterest is difficult: the number of buyers of the second, although higher by as much as 32%, but the total audience is almost 6.5 times less, and the conversion rate is 2% lower!
It is worth noting that it is Pinterest that wins in the “highest price” nomination: its audience is ready to spend 2.2 times more on an order than Facebook (the difference in monetary terms is $ 85), and 1.5 times more than Instagram ( the difference is $ 51). Despite the fact that the Insta-world covers a wider audience (for a minute: 1,160 million Instagram versus 416 million Pinterest), it loses significantly in terms of the percentage of buyers.
Comparing the outsiders on our list of Twitter and Snapchat, we can say that they maintain neutrality among themselves in almost all respects, without going far from the average price on Facebook.
Read our blog post on how B2B is using content marketing.
Social media and customers: which audience is more active?
The value of social media is not only in the ability to quickly increase sales. The formation of brand awareness among your target audience plays an important role. Experts recommend focusing on those social networks where users with the right demographics prevail.
If you’re looking to interact with a predominantly female audience, head to Facebook, Pinterest and / or Instagram. As you can see in the graph, the difference between the activity of “female” and “male” is most noticeable in photo hosting – mostly women prefer to share photos.
Snapchat still maintains a proud neutrality, showing a balanced ratio of men and women. Twitter is popular with men. Although the difference is insignificant – only 3% – so far this is the only platform on our list where the stronger sex “wins”.
Age often plays a key role in offline and online sales, because the solvency and solvency of potential buyers depends on it, that is, the ability to immediately purchase the product they like without thinking about its cost, without bargaining and without asking the seller for another discount.
If you decide to work with young people, you will have to register on Snapchat, where teenagers (13-17 years old) are sitting and there are practically no users over 50 years old. A similar situation is with young people on Instagram, but the reach of the “age” audience is much wider here. Interestingly, young netizens under the age of 18 aren’t interested in Pinterest! On the site, mostly people over 30 are active.
Want to interact with different ages? Then you are on Facebook: this is the social network where it is easy to find like-minded people without reference to geographic location, gender or age. Of course, there are differences: people from 18 to 49 are clearly striving to use the social network, however, the rest also demonstrate high involvement.
Thus, based on the results of recent studies, we can conclude that Facebook has once again confirmed the title of “king of social networks.” And it is not surprising, because it ranks 3rd in the global top of sites, behind only Google and YouTube in traffic, and 2nd in the top of frequently downloaded applications after TikTok.
According to statistics, over 80% of American marketers use FB tools for advertising purposes. This urge is also not surprising, given that almost the same percentage of US consumers make retail purchases there. If you are looking for the perfect place to trade online, sign up for the FB Marketplace. You will get the opportunity to develop in two directions:
- Demonstrate advertising to interested parties, in particular, visitors to your store and established buyers, set up retargeting to those who viewed your offers within the last 3 months, but did not place an order.
- Find new potential customers who have similarities with current customers, for example, similar demographic characteristics, areas of interest, place of residence.
Whichever sales channel you choose, do not limit yourself to it – develop shop accounts on several platforms at once, even where, it would seem, the likelihood of attracting a loyal audience is very small. This will allow you to receive additional income, albeit insignificant, but pleasant, and form a reserve in case of unforeseen circumstances.