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Social media giants are in a project to become full-fledged grocery shopping experiences. But so far, efforts around live grocery shopping and shoppable classified ads from TikTok and Meta, among others, don’t seem to be taking off with brands or consumers. As a result, some brands will offer those formats directly on their own internet sites to combine customers’ love of video with the convenience of visiting a branded website.
It’s evident that American shoppers, unlike their Chinese counterparts, for example, are more comfortable finding a product on TikTok and then making a purchase on the brand’s website.
With a recession looming and social platforms looking for cost-cutting tactics, some have to abandon expansive buying plans. TikTok’s live grocery shopping program was reportedly suspended after suffering to make a call by himself in the UK; Facebook ends live grocery shopping next month; and Instagram ended its associated marketing program for creators. But brands believe there’s an appetite for video content that can be purchased, but not on social media.
Olaplex CEO JuE Wong has long been positive about video trading, but was frustrated by the fact that most of the responses presented to her were to host Olaplex videos on a separate platform or through social media, which she sees as a leak funnel. So he opted to use Firework, a purchasable video platform that allows short videos to live on the Olaplex homepage.
The TikTok-like video carousel displays user-generated content from Olaplex consumers, as well as team members, and shows how to use the products. Each has a product link that can be purchased at the back of the video that allows consumers to upload it to their cart.
“We’ve noticed a wonderful commitment,” Wong said. This is where on our homepage consumers can see at any time. I didn’t need another platform because there was too much chance of wasting consumers. »
The fear of brands is that at any point of discovery of social networks, a user can be distracted or frustrated through a mobile payment experience and never make a purchase. But when a product piques a customer’s interest on social media, they can enjoy that love of social video, as well as smoother payment on the brand’s website.
The hair care logo has noticed an 80% increase in conversions and a 15% increase in average order price since the videos were introduced in March 2022.
Of course, getting consumers to move from social platforms, where they watch videos for entertainment, to branded ones to consume content can be challenging. But “it’s neither,” Wong said. It is more convenient to buy directly from it than through a social platform. “It’s about giving consumers the ability to locate it wherever, when and how they want. We serve our consumers and offer them opportunities to notice us,” he said.
While the long-term of online shopping, on or off logo websites, remains murky, stores may see more good fortune with videos that can be purchased. It allows them to purchase the item without leaving the page. Live buying segments are hosted through logo workers or influencers and are meant to sell and sell products. Feeds allow shoppers to ask questions and make purchases.
“Video that can be purchased is better than live shopping on a retailer’s website,” Sucharita Kodali, vice president and principal analyst at Forrester Research, wrote in an email. to connect. A live grocery shopping program. Perhaps at a coveted outing or grocery shopping festival, live grocery shopping can be lucrative, but for the most part, the American customer has no interaction in shopping through a date. They need and where they need, which is why calling right away is much bigger than buying directly. “
In China, live commerce generated more than $300 billion in sales in 2021, accounting for about 12% of total retail e-commerce sales, and is expected to be only 20% successful by 2023, according to Insider Intelligence. In the United States, online commerce generated less than $6 billion, which is only 0. 1% of total online sales.
Online grocery shopping is becoming popular in China, as immediate technological inventions allow customers to skip websites and jump straight to cell phones to buy groceries through “super apps” that come with built-in payment forms. you can see a new fall jacket on Instagram, then stop at the brand’s internet sites to read reviews and see more photos of the article. After the onset of COVID, more detailed product videos have become imperative to make customers more comfortable buying groceries online, bringing a secure point from the physical store to a computer screen.
The interest of logos and investors in shoppable platforms has increased. In May, Firework secured $150 million in Series B funding, led through Softbank, and now employs about 400 full-time people. Firework CEO Vincent Yang said the platform has noticed an accumulation. in logo interest over the past 18 months, with around 30% to 40% of entries coming from logos that have seen Firework on the website. Yang added that the platform has also strengthened its corporate sales team.
“We need to teach brands how to experience their page online,” Yang said.
Firework was founded in 2017 as a social media app, but began focusing on business-to-business business in 2018. Lately, the company works with more than 1,000 consumers, adding the Hanky Panky underwear logo, Albertsons grocery retailers and Beachwaver curling irons. In April 2022, Firework announced a partnership with Omnicom to give consumers access to Firework technology.
Fireworks are rarely the only company looking to do this. Earlier this year, David’s Bridal used Bambuser, a platform that hosts live streams that can be purchased and allows brands to create pre-recorded content; Walmart began using Talkshoplive in 2021, allowing the retail giant to host purchasable content through Talkshoplive’s built-in video player directly on Walmart. com; and Nordstrom began hosting their own live trade events during the pandemic. Videos that can be purchased give consumers an exclusive outdoor experience in a physical store and will give consumers more detailed information about the products.
Retailers like The Fresh Market and Grande Cosmetics have also noticed an increase in sales of videos that can be purchased, though they were initially skeptical of looking for it.
When visiting The Fresh Market’s website, shoppers watch a video of fireworks in the back right corner of the homepage. One video explains that consumers can stop by retail outlets to have a few pieces of salmon cut into the butcher, while taunting a $25 weekday poultry meal. tacos serving 4 meals or a catering service for a wheel sucking party. Each has a “Buy Now” button that directs users to a detailed occasion page, customizable shopping lists, or the ability to place an order for curbside pickup.
Grande Cosmetics started looking for grocery shopping platforms two years ago with the goal of boosting online sales. officer of Grande Cosmetics.
Grande Cosmetics had been in talks with TikTok to make a shopping video on the platform, but eventually found it too uplifting. “It was self-service and we would have needed the Shopify integration with TikTok,” Dominich wrote in an email. “The interface is not as intuitive and informative as Firework. Firework comes with product integration and also informs us about efficiency, so it’s a win-win.
TikTok declined to comment on this story.
Olaplex also found that while it liked to watch user-generated content on TikTok, it didn’t like some videos showing misuse of its products. They wanted to make sure their online page was a source of verified information.
“Of course, there’s no one way to succeed among consumers, but not all content is created equal,” Olaplex’s Wong said. And they can accept the data as true because it comes directly from us. “
All 3 are looking for short videos for the holiday season.
“It’s an essential component of our vacation strategy,” Dominish said. “We are looking to advertise our packages. “
Erika Wheless is a tech journalist covering social media platforms, influencers, and esports. In the past, he was an e-commerce journalist for Digiday and graduated from the Craig Newmark School of Journalism.