Retailers Are Missing Out on the Social Shopping Opportunity

kenshoo_social_shoping

E-commerce is a fairly mature industry. However, there are major inefficiencies — and I’m not just talking about poorly-designed sites. While search and social account for more than half of the traffic to retail sites, retailers post less than two percent of their wares on social commerce sites, according to a report from digital marketing software provider Kenshoo and digital merchandising technology provider DataPop.

Kenshoo and DataPop analyzed three million products across 40 retail sites, and the findings indicate a big opportunity for retailers. According to the report, search sites such as Google and Bing are still huge drivers of traffic, but social sites such as Pinterest and Polyvore are driving sales — and high quality sales, at that.

However, social represents a minuscule percentage of overall sales. The Kenshoo-DataPop report suggests this could be a failure on the part of the retailers to post merchandise to retail-friendly social channels. Retailers post about 1.7 percent of their products to social sites, and less than 10 percent of items in Product Listing Ads are pushed out on social.

When retailers do post to social channels, 70 percent use the product name. According to the report, consumers aren’t searching for product names, but rather using product descriptions such as color, style and materials.

The report makes three recommendations for retailers to capitalize on the social shopping opportunity:

  1. Post more products: More products = more traffic from social sites.
  2. Better quality posts: Customized product data will help consumers find products.
  3. Deeper engagement: Connect with consumers for better visibility on social sites.

For more information details, download the report here.

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