Social media platform Twitter partnered with ecommerce company Shopify to enable merchants to advertise their products on its platform. Shopify merchants will be able to automatically update and display up to 50 items on their Twitter profiles. Users who click on items will be directed to the merchant’s website to complete a purchase. The partnership is an effort by both the companies to expand their social commerce offerings.
What is Social Commerce?
Social commerce is a subset of ecommerce that involves buying and selling products directly within a social media platform. The increase in the average amount of time spent on social media platforms during the COVID-19 pandemic and the convenience of making purchases online facilitated the growth of the social commerce sector. Social media platforms, including Facebook, Instagram, YouTube, and Snapchat, are making substantial investment in including shopping features to achieve higher revenue.
Twitter is Still Lagging Behind Rivals
Many social media platforms are starting to prioritize shopping as a feature as it increases engagement and enhances income. While the modification makes Twitter a more appealing option for Shopify merchants, it still lacks the functionality offered by other social media sites such as Facebook and Instagram. Meta's two most popular platforms—Facebook and Instagram—allow customers to finish their purchases without leaving the apps, whereas on Twitter, users are directed to the merchant’s website to complete a purchase.
Growing Opportunities in Social Commerce Space
In the first quarter of 2022, Twitter reported revenue of $1.11 billion from its advertising business. To expand its advertising business, Twitter has been experimenting with features that help businesses showcase products through their Twitter profiles, besides enabling live shopping streams through the platform. According to Shopify, businesses are turning to social commerce as a source of sales. In an effort to make it simpler for customers to shop on social media and make payments with their phones, businesses are attempting to shift from direct-to-consumer to "connect-to-consumer" models.
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