In the past year, all the major social media platforms have rolled out commerce buttons, signifying their ambition to become the stores of the future. The top 500 U.S. retailers earned $3.3 billion from social shopping in 2014 – 26% more than the previous year.
However, few brands in L2’s Digital IQ Index: Big Box employ social commerce to drive sales. Just over half of Index brands active on Facebook utilize the platform’s “Shop Now” button, and only a quarter have adopted Instagram’s “Like2Buy” feature.
Many of those early adopters also score high on other measures of digital competence. For example, Best Buy (ranked third in the Index) embeds “Shop Now” buttons within its product tweets, placing users on a path to purchase on the brand site. And Sears (ranked ninth) includes a prominent “Shop Now” button underneath its Facebook page cover photo as well as similar calls-to-action within posts. As social commerce moves away from the experimental phase and platforms step up their investments in the area, the L2 study predicts that brands will do likewise.