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Does Social Media like Facebook & Twitter Influence Sales for ecommerce Sites?

Social Media for EcommerceThe question whether social media like Facebook and Twitter influence sales for ecommerce sites has been debated heatedly among marketing folk. Yet there is no simplistic answer. While some bet on social media in a big way, others are unimpressed.
The truth most probably lies in between. Does Social Media like Facebook & Twitter Influence Sales for ecommerce Sites?
Let’s have a critical look at the role of Social Media on Ecommerce.

Social Media As An Influencer

Display advertising is probably the most visible and direct method to attract customers to an ecommerce site. While this may seem like an attractive option, studies have revealed that display advertising results in poor visitor count on target ecommerce sites. However, Holiday Sales seem to pick up with this approach. This is perhaps due to the fact that visitors to social media sites are actively looking of bargain sales during the Holiday season. As a corollary we can claim that actual Holiday sales on an ecommerce site can be accelerated by using display advertising.

Facebook has taken a lead in display advertising and is used more often to boost Ecommerce. In this respect, Social media like Twitter fall short of expectation. This is due to the inherent limitation in using Twitter. This is not to say that Twitter has no role in increasing sales. There have been instances where Twitter has created a flutter in marketing circles. The iPhone phenomenon is directly linked to promotions through social media in which Twitter has played an important role. Social media acts as a word-of-mouth tool and has a psychological advantage as compared to traditional advertisements.

Social media and ecommerce are linked to the extent that it creates brand awareness. Brand recall is high in such instances. This is of immense advantage when customers are made to choose one brand over another.

Social Media As An Informal Marketing Channel

This is where social media scores over traditional marketing. Informal Product reviews and discussions on Facebook impact ecommerce sales. Customers repose more faith on feedback given by others than on advertisements which seem like paid promotions. A healthy dose of criticism by unknown and common man-on-the-street is somehow believable and rings true. Building brand awareness through Facebook is likely to work and improve sales.

Twitter can cause a tidal wave of customers. Messages which go viral can change the fortunes of companies and products. However this phenomenon does not happen every day and requires right blend of product and message.

There are other social media tools like Pinterest, StumbleUpon and LinkedIn which can generate sales for an ecommerce site. Marketing strategies for these sites vary according to the product sold.

Conclusion :

Social Media can influence Ecommerce sales in many ways. Direct advertisements and banner ads can create brand awareness and act as an influencer in purchase decisions. Facebook and Twitter are social media tools which can be harvested to create demand for a product. On the whole, a strategic role can be devised to use social media to accelerate sales on ecommerce sites.

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