Social commerce: selling without the detour

Social commerce means the entire purchase happens inside the social app: discover the product, view details, pay, without leaving. The economic effect is considerable, in both directions.

What you gain

The media break between ad and shop typically costs between 40 and 70 per cent of interested people. Every extra step, every load time, every sign-up form takes its toll. Remove that break and conversion rises noticeably.

What you lose

Those figures conceal the other side of the ledger.

• Commission. Depending on platform, 2 to 8 per cent of gross merchandise value, on top of payment fees.
• Customer data. You get order and delivery details but no marketing relationship. No newsletter contact arises.
• Repeat-purchase control. The platform decides who sees your new lines. Without your own list you pay for that again every time.
• Brand experience. Your product page looks like every other in the app.
• Returns. Impulse purchases in social apps consistently show higher return rates, in fashion sometimes above 40 per cent.

Who it pays for

Social commerce suits ranges with low prices, little need for explanation, a high impulse component and a steady stream of new lines: fashion, cosmetics, accessories, decor, supplements.

It suits poorly: high-priced goods, explanation-heavy technology, products needing advice, and anything where customer value builds over years.

The calculation to make

Compare contribution margins over twelve months, not conversion rates.

1. Contribution per order in your own shop, less advertising cost.
2. Repeat rate in your own shop over twelve months, usually 15 to 40 per cent.
3. Contribution per order on the platform, less commission and higher returns.
4. Repeat rate on the platform with no way to address customers, usually much lower.

In many such calculations the own shop wins once the repeat rate passes 25 per cent.

A sensible middle path

Treat the platform as a marketplace for acquisition and your own shop as the place for retention.

Concretely: run entry products with workable margins on the platform, include an incentive in every parcel to order direct next time, and measure how many customers take that route. Once that share passes 20 per cent, the platform is working for you rather than the reverse.

The legal frame

Even selling inside an app, you are the seller, not the platform. That means your cancellation policy, your price information including unit pricing, your information duties. A breach lands on you, not the platform.

Check in particular whether the platform's presentation shows your mandatory information in full. In practice the unit price is regularly missing on goods sold by weight or volume, and that is actionable.