OPINION: Is Social commerce the future of e-commerce?

In the realm of marketing and e-commerce, the burning question echoing through panel discussions, forums, and networking events is, "Can I get a Return on Investment?"

The relentless pursuit of answering this question stems from the pressure faced by marketers to demonstrate tangible results to the higher-ups.

The challenge intensifies in an era dominated by billboards, YouTube ads, and various marketing channels, where accountability for spending is more critical than ever.

Having spent considerable time in the e-commerce landscape, I've witnessed the struggle to convince businesses, big and small, to invest in online platforms.

The e-commerce sector, plagued by losses and investor scepticism, has long grappled with financial instability.

Despite the presence of giants like Jiji, Jumia, Glovo, Uber Eats, and traditional supermarkets venturing into e-commerce, marketers and traders face difficulties in gaining visibility and making sales on these platforms.

The heart of the issue lies in sellers finding themselves at the mercy of e-commerce companies, often paying hefty fees for advertising spaces and struggling with low conversion rates.

Frustrated by the economic challenges, sellers resort to independent social media marketing and collaborating with influencers to promote their products.

Marketing directors from various companies complain about the high costs imposed by e-commerce platforms arguing that they pay for visibility without guaranteed conversion.

The rise of brokers and middlemen among buyers on these platforms further complicates matters, diminishing the pool of genuine buyers for sellers.

As time unfolds, marketers have found themselves turning away from calls from traditional e-commerce companies. The reason? A newfound revelation, albeit in its infancy – social commerce.

Curious about the distinction? Social commerce involves selling through social media platforms. E-commerce /electronic commerce, on the other hand, is the trading of goods and services on the Internet.

It is your bustling city centre or brick-and-mortar shop translated into zeroes and ones on the internet.

Currently, the go-to platform catering to all product types in Kenya when it comes to social commerce is https://home.twiva.co.ke/

Diverging from conventional e-commerce, social commerce on Twiva operates on a fee-free model; businesses need not pay for anything, and no commissions are involved.

The registration process on Twiva takes a mere minute, devoid of cumbersome documentation. Once registered, businesses showcase their products, and an AI system seamlessly links them with suitable influencers from the platform's pool of nearly 11,000.

This matching process considers influencers' niches and past experiences. The influencer crafts a message using the retail price (not the wholesale price set by the business) and shares it on their social platforms.

For every order, the influencer earns the net profit, the difference between the wholesale and retail prices, while the business gains a new customer. The best part? It's all free.

Embracing this innovative model, around 700 businesses in Kenya have abandoned traditional e-commerce platforms, which excelled in public relations but faltered in generating sales.

It seems these platforms are still in their grace period, unable to translate promises into concrete results.

In light of these developments, the prevailing sentiment suggests that the days of traditional e-commerce are numbered.

Social Commerce, with its unique approach, emerges as the next frontier. Could this be the future destination for all marketers? Signs point in that direction.

Grace Gikonyo is the Head of Marketing and PR at Twiva. She recently won the “Top Digitally Fit PR Practitioner of the Year, 2023.”