Online shopping has become an integral part of our lives, and we frequently come across the term e-commerce. E-commerce is short for electronic commerce, referring to all transactions conducted through electronic systems via the internet.
Today, e-commerce is the preferred choice for people of all social classes, regardless of age. It offers the convenience of shopping from home without leaving our comfort zone. However, a few years after the e-commerce boom, the term social commerce emerged. While not as popular as e-commerce, social commerce has recently gained significant attention. Unlike e-commerce, which requires a website or specific app, social commerce enables transactions directly through social media platforms.
There are several other differences between e-commerce and social commerce. Before exploring these differences further, let’s clarify their definitions.
Also read: 7 Types of Fintech That are Growing in Indonesia
E-commerce Definition
Social Commerce vs. E-Commerce, What Are the Differences? (source: Freepik)
E-commerce generally refers to online platforms that facilitate commercial activities such as buying and selling products. Customers can view product displays with clear descriptions and prices, easily choose desired products, and proceed to checkout—all within a single platform without switching to another app or website.
In Indonesia, popular e-commerce platforms include Tokopedia, Shopee, Lazada, Blibli, and Bukalapak.
Social Commerce Definition
Social commerce involves buying and selling activities on social media platforms. Social media provides a strategic space for selling products, given the unique characteristics and user demographics of each platform.
For example, Facebook is popular among individuals aged 35-50, while Instagram is dominated by Gen Z and millennials. TikTok, on the other hand, attracts teenagers and young adults worldwide.
Social commerce innovates the online shopping industry by allowing customers to discover products while socializing with other users.
Also read: What is Social Commerce? The Definition and Advantages
Differences Between E-commerce and Social Commerce
Social Commerce vs. E-Commerce, What Are the Differences? (source: Freepik)
At a glance, the difference between e-commerce and social commerce is quite clear. However, here is an in-depth explanation of the differences between e-commerce and social commerce.
-
Transaction process
E-commerce offers a more streamlined and practical transaction process compared to social commerce.
Customers can complete all transactions within the e-commerce platform without the need for additional applications or websites, especially when the platform is integrated with e-wallet services. In social commerce, however, buyers may need to complete transactions through other platforms, particularly for payments.
While social media serves as a strategic product display platform, it may require further enhancements for seamless payment and transaction processes.
-
Buyer and seller interactions
On e-commerce platforms, interactions between buyers and sellers occur through private messages, discussions, and reviews. The interaction is typically focused on products and transactions.
On the other hand, social commerce offers more diverse interaction features, such as private chats and comments. Each social commerce seller has its own policy for interacting with customers.
Interactions between buyers and sellers in social commerce are often more nuanced and may assist potential buyers as well.
-
Review management
Review management differs significantly between e-commerce and social commerce. In e-commerce, reviews play a crucial role in determining a seller’s reputation. Positive reviews from previous customers can encourage more potential buyers to complete transactions. In social commerce, reviews are optional, resulting in fewer available reviews. As a result, customer reviews have less impact on social commerce compared to e-commerce.
Also read: 5 Top Social Commerce Startups in Indonesia and South East Asia
-
The platform interfaces
E-commerce and social commerce platforms have distinct interface designs. E-commerce platforms typically have a consistent display for all stores, with the banner being the only customizable element.
In contrast, social commerce allows sellers to be more creative in presenting their products. They can utilize photos, videos, and audio-visual content tailored to their customers’ preferences.
-
The social media feature
E-commerce and social commerce differ in terms of available social media features. Not all e-commerce sellers have social media accounts or utilize social media for product marketing. E-commerce sellers typically focus on advertising within the e-commerce platform. In contrast, social commerce utilizes social media as its foundation, providing a broader range of social media features to reach the target market, such as Instagram reels, TikTok filters, and other promotional features.
To date, e-commerce platforms remain the primary shopping option for most people. Social commerce still requires further innovation to catch up with e-commerce platforms. However, social commerce is currently on the rise, especially considering the characteristics of the younger generation. It presents an excellent alternative for future shopping experiences.
