The Future of Online Shopping: Is eCommerce Evolving into Social Commerce?

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These figures show the increasing growth of the constantly changing ecommerce industry. Trends are developing regularly, which has a big impact on the way people buy products all over the world, and this constant change makes the future of ecommerce incredibly exciting.

More and more people are buying their products online. The ecommerce industry trend had already been growing steadily for several years, but the COVID-19 pandemic and the resulting lockdowns have spurred the steady rise in ecommerce. Even smaller stores have realized that the move to digital is inevitable, and are now scrambling to gain a foothold in the online marketplace as well.

The growth market of ecommerce offers economically interesting opportunities. But what types of businesses are included? What does the future have in store for the ecommerce sector? And will ecommerce evolve to social commerce?

What types of business are included in ecommerce?

Business-to-business commerce

B2B generally refers to business relationships between at least two companies. For example, contracts arise between suppliers and companies or between different retailers. B2B companies count other businesses among their customers, so their activities are limited to business with corporate customers. Resellers, processors, commercial end customers or associations and clubs can also be active in B2B.

Business-to-customer commerce

B2C describes the business relationship between companies and private individuals, for example, the sale of products or services to end consumers. This means that services or goods are sold online directly to private customers.

Customer-to-business commerce

C2B refers to the relationship between businesses and end consumers. Portals enable users to search for specific producers who can meet their requirements. It originates from marketing and means the direct addressing of consumers by a company. It can be described as a reversal of the classic trading approach, since the customer addresses the business.

Customer-to-customer-commerce

C2C describes the relationship between two private consumers. This term includes web portals that offer end consumers the opportunity to sell goods to each other.

Government-to-business-commerce

G2B describes a government approach to selling services and goods to businesses. Many of the electronic services offered are free, but there are also some that you have to pay for.

Will ecommerce evolve to social commerce?

Social networks are gradually developing into sales platforms. Facebook, Instagram, Pinterest for instance, are already successfully implementing social buy buttons and driving the social commerce trend. Mobile shopping via apps is very popular with most smartphone and tablet users, but doesn’t always satisfy customers' increasing desire for social interaction while shopping. It’s precisely this gap in demand that has given rise to the latest shopping trend - social commerce.

Social commerce describes the strategic combination of ecommerce and social media. For a long time now, social networks have not only served to maintain contact with friends and acquaintances, because more and more brands and companies are presenting their products with the aim of reaching the masses and increasing sales on the company's web store. At the moment, social media and the revenue they generate may still play a minor role in online shopping, but the growth rates are high. This development can be seen as a great advantage for brands and retailers.

The central idea of social commerce is direct communication and interaction with potential customers via social channels as well as the active participation of consumers, for example as consultants, developers and sellers. On top of this, the great exchange in the form of recommendations and personal relationships among users is of great importance, as many shoppers take advantage of the opportunity to discuss both the purchase and initial experience reports about a new product with virtual friends in a chat.

Social commerce is not exclusively the future of ecommerce, but it will become an increasingly important building block in the future, and across all industries. Not only will large companies will benefit from it, but also small ones that need to address their customers digitally quickly and easily but don’t have the largest marketing budget. What's more, an online store of their own will then no longer be necessary in some cases if shopping is done one hundred percent directly via social media platforms. Furthermore, social commerce allows companies to become somewhat less dependent on ecommerce giants like Amazon.

What does the future look like for ecommerce?

There are various predictions concerning the future of the ecommerce industry, such as:

• Developing nations like Brazil, China, India, and South Africa are expected to play a major role in the future of ecommerce
• With the advance of digitization, consumer behavior is changing. The tension between digital and local commerce will continue to grow. It is irrefutable that the growth of online shopping will dominate brick-and-mortar retail. This does not mean, however, that doesn't mean that the branch business isn’t still incredibly valuable for ecommerce brands
• Another advancing trend in ecommerce is the worldwide increase in shipping centers. As more and more customers buy their goods online, the need for fulfillment centers is rising sharply
• Sustainability is becoming an increasingly important factor. Nowadays online shoppers are well-informed, discerning and show a great interest in sustainability and the impact that the products they purchase may have on the environment
• In the long run, social media will combine direct purchasing with social interaction: It will probably take some time before social media and online shopping become completely interconnected. However, there are already signs of a clear shift from demand-driven shopping to impulse-driven shopping