Social Commerce 101: EdgeRank and How It Affects Your Social Media

In a world where Social Media dominates, it’s always good to have a leg up on the competition, and research how to effectively use your resources at hand.

What is social commerce? Social commerce is the interactivity a person has within their particular social media network and learning how to use that to sell a product or service. What is social commerce and it’s impact on social media? With Facebook, it’s all about sharing good content on your page. With things such as the share or like button, it’s like how Google uses SEO tactics to help build awareness. Often times when people see this sort of activity on the homepage of their site, they are liable to click on the link based off of curiosity. If the information is valuable enough, they may go back and buy the product or service. Social commerce is the way of the future, and different outlets like Facebook, Twitter, and LinkedIn have their own version of this particular tactic.

More in particular to Facebook is the EdgeRank. It’s almost like Google uses a PageRank method. EdgeRank actually measures the general activity of your Facebook. This constitutes for sharing your links, how active you are on your site, as well as how many people like the stuff you post. A good way to actual sustain solid EdgeRank is finding ways to keep these particular topics on the forefront. When you provide valuable information, there’s a chance that a number of people will like that topic. It’s almost like if you built a website with solid SEO. Topics garner a good ranking on the first page of Google, and many people flock. The flip side for Facebook is that your post whether it’s a status, video, image, or audio clip becomes a top story. When you constantly engage with your audience, you’ll build your rank even further by tagging, commenting, posting, linking, and even sharing your own links or those of your Facebook friends.

The same effect would go for Twitter because you gain followers through useful information. People are liable to retweet (which is like sharing on Facebook) the information you post. This has a profound affect on your social media because these followers or friends become prospects for when you do post something that a product or service. You’ve already established the fact that you present value, so you’ll have more buyers at hand to purchase your products.

What Is Social Commerce Anyway?

So what exactly is “social commerce”? In short, social commerce is selling with social media, online media that supports user contributions and social interaction. It’s selling with the current “Big Five”.

The Big Five Include:

1. Facebook
2. Youtube
3. Twitter
4. LinkedIn
5. Pinterest

And some other social media platforms like Google+, Instagram and Qoura.

In 17th century, the French playwright Moliere used the term “Social Commerce”.

Here, social commerce termed “social transactions” in which reputations and public “social” images were exchanged instead of money. Sports brand Nike has recently revived this idea with an innovative custom Facebook application that allows people to bid for and buy Nike sneakers with their reputation rather than money-in the form of points earned through Nike+ applications.

Social commerce is about using social media as “transactional media” to complete sales transactions, but in some of the most innovative cases of social commerce, no money changes hands.

Industry thought-leader Steve Rubel from the PR firm Edelman sums up the umbrella term of social commerce nicely: social commerce is about “creating places where people can collaborate online, find goods and services, get advice from trusted individuals and then purchase them.”

Social Applications for E-Commerce Sites that enable vendors to collect and share user feedback-ratings, reviews, and recommendations-on their site and through their customers’ social networks, and personalize the e-commerce experience. These apps range from simple social sharing plug-ins that add sharing buttons such as the Pinterest “Pin” button to product pages, to social plug-ins that add Amazon-style ratings and reviews features to an e-commerce site. These apps not only accelerate and amplify the word of mouth, but can also allow vendors to predict demand and offer personalized recommendations based on similarities between shopper profiles.

E-Commerce Applications for Social Sites that help vendors sell directly in social media such as from their blog, YouTube channel, or Facebook Page. These range from simple storefront plug-ins that republish an external e-commerce site on a social media page to standalone e-commerce applications for social media.

E-commerce apps for social media sites have been particularly popular with small and medium-size businesses, providing a cost-effective and simple alternative to maintaining a traditional e-commerce site. Market leader Payvment currently has over 150,000 businesses using its social media e-commerce application.

Mobile Applications for In-store Social Shopping that help people shop smarter by shopping together via mobile handsets. These range from mobile apps for “group-buying,” which allow people to get store discounts by clubbing together and buying in bulk, to mobile apps that help store visitors get instant feedback from their friends on whether or what to buy. Mobile apps for in-store social shopping also include so-called “check-in” apps such as foursquare, which reward people for sharing where they are shopping, as well as a new generation of mobile “ACT” apps (Assistive Consumer Technology), which add a social “augmented reality” layer to the store experience, displaying shared reviews, ratings, and recommendations when the handset is pointed at particular products.

Web Applications for Social Shopping that support vendors to promote and sell their products on sites where share, shoppers congregate, exchange, and buy. These range from shopping club sites such as Fab and Gilt that run regular retail events for to community-based vendors, marketplaces such as Shoply and Etsy which allow vendors to cultivate one-to-one relationships with their customers. Web apps for social shopping also contain platforms such as The Fancy, Pinterest and Svpply which offer gathered and curated product selections-as well as sites such as Made.com, which allow designers to submit product designs, which if popular, go into production.

Social Commerce: What the Heck Is It?

What is Social Commerce

Social Commerce means collective buying or group buying. It involves interacting with consumers through social media to attract the right customers to the right products and services to purchase at a discounted price. Interacting with the consumer creates measurable value to business owners that develop deals based on consumer interests. The goal is to fulfill the interests of consumers by creating repeated visits to brick and mortar business by slashing prices in half on sales items. Consumers receive notice of daily deals via personal emails where they can take advantage of deals of their choice.

Group Buying Sites

Groupon and Living Social are two daily deals sites that set the standard for social commerce. Groupon is the father of social commerce. In the summer of 2010, Groupon gained much attention when it went national and secured a Gap promotion which advertised $50 in merchandise for $25. Within a few hours sales soared and Gap made $11 million dollars in one day. This transaction attracted the attention of Google who proposed a buyout for Groupon at $5 billion dollars. Groupon did not accept the offer and three months later was valued at $25 billion dollars and growing. Consumer buying on sites like Groupon are positioned to rise to $3.9 billion by 2015. Sites like Groupon and LivingSocial generate $1 million dollars a day in revenue. In a report by TechCrunch, daily deals sites are expected to grow 138% this year and are projected to bring in revenues of $2.7 billion dollars. Wow, wouldn’t it be great to capitalize from group buying.

Network Marketing and Social Commerce

Some network marketing companies like InVado and The Customer Advantage have capitalized on group buying by incorporating daily deals services for representatives to promote. These companies have positioned themselves as the second generation of group buying sites which will soar to $3.9 billion dollars by 2015. Smart network marketing companies are researching first generation companies like Groupon and Living Social to understand what it means to be on the front end of a business opportunity that is set to change their financial future. The results, people from all walks of life can capitalize from daily deal sites and make a substantial income. Would you want to take advantage of a business that is documented as making over $1 million dollars a day? Wow, I don’t know about you but I would want to have a piece of that pie.