Social e-commerce’s high efficiency for guests and fissionability attract so many companies to enter the market. In 2018, Social e-commerce became the darling of capital. Social e-commerce companies such as Pingduoduo, Yunji and Mogujie were listed, which push the sector to the cutting edge.
Social e-commerce develops rapidly. In 2018, social e-commerce GMV totaled 626.85 billion Yuan in China, skyrocketing 255.8% compared with the previous year. With the deep integration of social traffic and e-commerce, social e-commerce gets increasing share in online shopping market and becomes an up-rising star in online shopping market. During three years from 2015 to 2018, share of social e-commerce in online shopping market expanded from 0.1% to 7.8%.
Compared with traditional e-commerce, social e-commerce has unique features and advantages. It relies on social fission to achieve shopper guiding with high efficiency and low cost. The shoppers are either buyers or promoters.
Based on social traffic, social e-commerce has operation of high efficiency and low cost covering the full-life circle from new shopper acquisition to shopper retention. In new shopper acquisition stage, it grows fast and cuts the cost of shopper acquisition by social fission. In the conversion stage, social e-commerce raises the conversion rate with trust among acquaintances based on acquaintance relationship. At the same time, it can make a natural structure among users with social tag.
Social e-commerce- centered ecosystem is gradual forming. and the sector develop fast to create new entrepreneurial opportunities and new service providers. More players entered social e-commerce market. The problems and demands appearing in their operation and development process produce service ecosystem centered on social e-commerce, for example, SaaS, training, fiscal & tax solutions. A series of service providers are emerging to offer convenience to brands, merchants and SMEs when they explore social e-commerce. With the development and more participants, more service ecosystems centered on social e-commerce will come forth in the future