Discuss about the Social Shopping Combines Product.
Social shopping is a kind of e-shopping methodology where the shopping experience is mainly shared with a social network of friends. This shopping methodology impacts people’s buying processes by using the social media networks in sharing, recommending, suggesting, and commenting on various products and services. Social shopping plays a great role in motivating or influencing the social media friends and other people to buy certain products or services (Kyoochun and Lee, 2012, pp.441-451).
From the given article we get the statement that “Social shopping combines product/service sales with consumer participation in a social network environment with a synergistic relationship between social networks, consumers, and local merchants” (Lee et al., 2015, p.735). This statement is a clear indicator that social shopping plays a very important role in promoting the sales of different goods and services since it helps to improve the synergistic relationship between the sellers and the consumers of various products and services using different social media platforms which in turn improves the trust and the loyalty between these two main stakeholders (sellers and customers) of businesses. Promoting and increasing the sales of the goods and the services being sold by the businesses automatically leads to an increase in the profits generated by the businesses (Nezami, Worm, and Palmatier, 2018). From the article, we learn that social shopping has some advantages and some disadvantages to the involved parties. Some of the major advantages of social shopping to the social merchants include expanding the customers base of businesses, increasing the sales of different products and services sold by the businessses, reducing the advertising expenses which used to be incurred using the traditional advertising mechanisms, increasing the utilization capacities of businesses, improving the relationships between the sellers and the customers through the advanced social media networks, opening new sales channels for the businesses, reducing the inventories of businesses, improving the marketing methods of businesses, among many other advantages (Lee et al., 2015, p.740). Even with the many advantages of the social shopping, there are still some disadvantages which result from employing social shopping strategy in businesses. Some of the major disadvantages of social shopping include increasing the risk or the potential of reducing the profits due to the high commission rates, may do some harms to the companies through spreading of negative reviews which may given by some clients (customers), it encourages competition among the merchants, the businesses are forced to incur some costs to manage the shopping sites, it encourages cannibalization from the existing customers, increases the complexity of resources and staffs scheduling, among many other disadvantages (Lee et al., 2015, p.740). Using inductive reasoning, we can see that social shopping has some advantages and some disadvantages to the social merchants but the advantages outweigh the disadvantages and therefore, businesses should incorporate social shopping in their operations to enjoy their many benefits or advantages. These businesses should also look for some means to address some of the addressable disadvantages which result from social shopping (InLee and Choi, 2015, pp.735-747).
E-Commerce in Australia
E-commerce can be simply defined as the activity of buying and selling of different goods and services online or via the internet (VanHoose, 2011). Being one of the most developed countries in the world, Australia has very many businesses of different types and most of these businesses have incorporated e-commerce strategy in their operations, and this strategy has proved to be very effective in boosting the performance of the businesses since it earns the business customers within and outside of Australia. E-commerce and social shopping are generally similar in the sense that they both help the businesses to advertise their products and services online (on different social media sites) and the customers get to learn about the companies or the businesses and the products and the services they offer online. Having known the businesses, the customers can make any inquiries online and can also contact the businesses and make orders of any products or services they want, and the businesses can organize how the customers will get the products or the services of their interests (Cheung, Christ, and Ivy, 2015, pp. 2511-2521).
The establishment and the development of e-commerce can be associated with the ever-developing and advancing technology where different people are always making new inventions every day. Different scientists and scholars are ever-researching to see how they can make new inventions to make the world a better place for the people. It’s in their research and inventions that these researchers were been able to invent the e-commerce technology (Gregory, Ngo, and Karavdic, 2017). In Australia, the use of e-commerce has been embraced by very many businesses where the managers these businesses use e-commerce to market their their products and services across the whole world. Through application of critical thinking skills, these managers have managed to harness the best from incorporating e-commerce services which has played a great role in improving the performance of their businesses. Some of the major advantages of the use of e-commerce in Australia businesses include earning the businesses many new customers, increasing the profits of the companies by earning the businesses more customers which increase the sales of the businesses, promoting the advertising of the goods and services sold by different businesses, improving the mutual relationship between the businesses and their customers as the customers can communicate directly with the businesses support teams and make any inquiries or orders if need be, among many other advantages (Chaffey, 2015). There are also some disadvantages associated with e-commerce where the main disadvantages are the high costs required for successful incorporation of e-commerce strategies in businesses, offers a platform where some people can spread some negative reviews or reputations of the businesses, shares some information of the business to the customers and outsiders which can help the hackers or other malicious people to ‘attack’ the businesses, among other disadvantages (Wang and Zhang, 2012). Using deductive reasoning, we can see that the advantages and the disadvantages of social shopping and e-commerce are similar as both business strategies involve marketing of the products and the services sold by the businesses online which helps to improve the performance of the businesses. We can end our discussion by saying that, the businesses should embrace the use of e-commerce in their operations to enjoy its many benefits, but at the same time they should be keen to address some of the addressable disadvantages of e-commerce.
Chaffey, D. (2015). Digital business and E-commerce management. Pearson Education Limited.
Cheung, K., Christy, L., and Ivy, L. (2015). How online social interactions influence customer information contribution behavior in online social shopping communities: a social learning theory perspective. Journal of the Association for Information Science and Technology, 66(12), 2511-2521.
Gregory, M., Ngo, G., and Karavdic, D. (2017). Developing e-commerce marketing capabilities and efficiencies for enhanced performance in business-to-business export ventures. Industrial Marketing Management.
InLee, S., and Choi, M. (2015). Determinants of Social Shopping Performance in Small and Medium-Sized Social Merchants: Theories and Empirical Evidence. Journal of Small Business Management, 53(3), 735-747. doi: 10.1111/jsbm.12084
Kyoochun, L., and Lee, I. (2012). Social shopping promotions from a social merchant's perspective. Business Horizons, 55(5), 441-451.
Nezami, R., and Stefan, P. (2018). Disentangling the effect of services on B2B firm value: Trade-offs of sales, profits, and earnings volatility. International Journal of Research in Marketing.
VanHoose, D. (2011). Ecommerce economics. London: Routledge.
Wang, C. and Zhang, P. (2012). The evolution of social commerce: The people, management, technology, and information dimensions. CAIS, 31(5).