Social Commerce: Huge Potential Requires A New Approach

Social commerce could transform online retail as we know it

About this Market

Social commerce is a type of online selling where consumer-to-consumer interactions enable the sale, rather than company-to-consumer interactions.

The value of the worldwide social commerce market in 2012 will be 21% larger than the value of the worldwide social networking market. By 2016 this gap will have grown to 188% as social commerce enters a period of strong growth, while social networking enters its mature phase.

It is too simplistic to regard social commerce as a fusion of online commerce and social networking. Instead, social commerce is a combination of 4 key social networking concepts and 4 additional concepts that have nothing to do with social networking. All of these concepts are explained in detail in this report.

Report Content

This report contains clear, detailed definitions of the 7 different types of social commerce.

In this report you will also find detailed analysis of over 40 leading start-ups who are promoting a broad range of innovative services that are based on a number of transformational business models.

This report also contains 5-year market forecasts, very detailed market analysis and some surprising insights into the status and future direction of this key emerging market.

EXECUTIVE SUMMARY

INTRODUCTION

DEFINITION: WHAT IS SOCIAL COMMERCE?

EXAMPLES OF SOCIAL COMMERCE: USE CASES

THE BEHAVIOURAL BASIS FOR SOCIAL COMMERCE

MARKET SIZE & GROWTH

PROFILES OF 32 SOCIAL COMMERCE START-UPS

FACEBOOK & SOCIAL COMMERCE

GOOGLE & SOCIAL COMMERCE

E-COMMERCE SOLUTIONS & STATUS

GOOGLE+

MARKET ANALYSIS

SOCIAL COMMERCE ON FACEBOOK

SOCIAL COMMERCE ON GOOGLE

ANALYSIS OF 18 LEADING SOCIAL COMMERCE PLATFORMS

WHAT PROBLEMS DOES SOCIAL COMMERCE SOLVE?

SOCIAL COMMERCE START-UPS: TODAY & FUTURE POTENTIAL

STATUS AND FUTURE EVOLUTION OF ONLINE RETAIL

STATUS AND FUTURE EVOLUTION OF SOCIAL NETWORKING

SOCIAL COMMERCE: FUTURE

CONCLUSION

THE STORY SO FAR

SOCIAL SELLING DESCRIBED

SUMMARY

MARKET FORECASTS

BROADBAND USERS

INTERNET USERS

ONLINE RETAIL REVENUES

SOCIAL NETWORKING USERS

SOCIAL NETWORKING REVENUES

SOCIAL COMMERCE REVENUES

SOCIAL COMMERCE AVERAGE REVENUE PER USER

APPENDIX

 

The following social commerce start-ups are profiled in this report.

Each profile is typically 4 pages in length:

Airbbnb
Birchbox
Copious
Etsy
ezCater
Fab.com
Flightfox
Getaround
Headliner.fm
Honest Buildings
Houzz
Ruby Ribbon
Relay Rides
Yelp
Kitsy Lane
Loosecubes
ModCloth
Ondango
One Kings Lane
onefinestay
Oodle
Quirky
Buildings
Show Dazzle
Sportaneous
Svpply
TaskRabbit
Threadless
Vayable
Venuetastic
Wikets
Yardsellr

Social commerce platforms included in this report:

3dcart
8thBidge
ecwid
Fluid Retail
milyoni
Moontoast
ondango
Payvment
Resource
Shop Tab
Shopigniter
Shoutlet
SortPrice
StoreFront Social
Usablenet
Voiyk
Volusion
Zibaba

This report contains over 20 pages of 5-year market forecasts for the most important aspects of the Social Commerce market.

Each of the following market forecasts are presented separately for each of the above six regions of the world:

  • Fixed Broadband Internet Subscriptions from 2011 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions) 
      
  • Internet Users from 2011 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
      
  • Online Retail Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
      
  • Social Networking Users from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
      
  • Social Networking Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)
      
  • Social Commerce Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)
      
  • Social Commerce Average Revenue per Social Networking User from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD per User per Month)


 

This report contains the following figures and tables:

Figure 1: Worldwide Market Size - Social Networking vs. Social Commerce from 2012 to 2016 ($, Billions)
 
Figure 2: Social Selling - Comparison between Established Online Retail Model & Social Selling Model
 
Figure 3: Social Commerce Defined
 
Figure 4: Worldwide Market Size - Social Networking vs. Social Commerce from 2012 to 2016 ($, Billions)
 
Figure 5: Example of a Seller's "Yard' on Yardsellr
 
Figure 6: Examples of merchandise available on the ‘Star Wars' block on Yardsellr
 
Figure 7: Social Commerce Defined
 
Figure 8: Social Networking Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)
 
Figure 9: Social Selling Model - Relationship between Merchant, Seller and Buyer
 
Figure 10: Social Selling - Comparison between Established Online Retail Model & Social Selling Model
 
Figure 11: Analysis of Google Shopping Results for "Handheld GPS Receiver"
 
Figure 12: Social Selling - Comparison between Established Online Retail Model & Social Selling Model
 
Figure 13: Fixed Broadband Internet Subscriptions from 2011 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
 
Figure 14: Internet Users from 2011 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
 
Figure 15: Online Retail Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
 
Figure 16: Social Networking Users from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)
 
Figure 17: Social Networking Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)
 
Figure 18: Social Commerce Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)
 
Figure 19: Social Commerce Average Revenue per Social Networking User from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD per User per Month)

Table 1: Key Ingredients of Social Commerce
 
Table 2: Social Selling Ecosystem - Summary of roles of main players
 
Table 3: ShoeDazzle - Business Summary
 
Table 4: Examples of Merchandise Categories (or "Blocks") on Yardsellr
 
Table 5: Yardsellr - Business Summary
 
Table 6: Oodle - Business Summary
 
Table 7: Fab.com - Business Summary
 
Table 8: Ongando - Business Summary
 
Table 9: Loosecubes - Business Summary
 
Table 10: Vayable - Business Summary
 
Table 11: Airbnb - Business Summary
 
Table 12: Flightfox - Business Summary
 
Table 13: Getaround - Business Summary
 
Table 14: Kitsy Lane - Business Summary
 
Table 15: Ruby Ribbon - Business Summary
 
Table 16: Birchbox - Business Summary
 
Table 17: Threadless - Business Summary
 
Table 18: ModCloth - Business Summary
 
Table 19: Headliner.fm - Business Summary
 
Table 20: Wikets - Business Summary
 
Table 21: TaskRabbit - Business Summary

Table 22: Yelp - Business Summary

Table 23: Kickstarter - Business Summary

Table 24: ezCater - Business Summary

Table 25: Venuetastic - Business Summary

Table 26: Svpply - Business Summary

Table 27: onefinestay - Business Summary

Table 28: RelayRides - Business Summary

Table 29: One Kings Lane - Business Summary

Table 30: Quirky - Business Summary

Table 31: Houzz - Business Summary

Table 32: Honest Buildings - Business Summar

Table 33: Sportaneous - Business Summary

Table 34: Copious - Business Summary

Table 35: Etsy - Business Summary

Table 36: Social Commerce Platforms - Example Companies

Table 37: Social Commerce on Facebook - Examples of companies & strategies

Table 38: Google Wallet - User Experience

Table 39: Social Commerce Market Segmentation - summary of the seven main types of Social Commerce

Table 40: Social Commerce: Summary of 32 Startups - Aspects of business model having most disruptive potential

Table 41: Online Retail Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)

Table 42: Fixed Broadband Internet Subscriptions from 2011 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)

Table 43: Internet Users from 2011 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)

Table 44: Online Retail Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)

Table 45: Social Networking Users from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (Millions)

Table 46: Social Networking Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)

Table 47: Social Commerce Revenues from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD, Millions)

Table 48: Social Commerce Average Revenue per Social Networking User from 2012 to 2016, for North America; Western Europe; Central, Southern & Eastern Europe; Asia Pacific; Latin America and Caribbean and Middle East & Africa (USD per User per Month)

Executive Summary8

Introduction14

Definition: What is Social Commerce?14

Examples of Social Commerce: Use Cases15

The Behavioural Basis for Social Commerce16

Popularity16

Authority16

Rarity17

Likeability18

Consistency18

Fair Deal19

Closing Remarks19

Market Size & Growth21

Profiles of 32 Social Commerce Start-ups23

ShoeDazzle23

Outline23

How it Works23

Summary24

Analysis24

Yardsellr26

Outline26

How it Works26

Business Model & Strategy28

Source of Revenue28

Social Aspects28

Summary29

Analysis29

Oodle30

Outline30

How it Works30

Business Model & Strategy31

Source of Revenue31

Social Aspects31

Summary33

Analysis33

Fab.com34

Outline34

How it Works34

Business Model and Strategy35

Social Aspects35

Summary36

Analysis36

Ondango37

Outline37

How it Works37

Key Features38

Business Model and Strategy38

Source of Revenue38

Summary39

Analysis40

Loosecubes41

Outline41

How it Works41

Business Model and Strategy42

Social Aspects42

Summary43

Analysis43

Vayable44

Outline44

How it Works44

For Members (those seeking an experience)44

For Guides (those offering experiences)44

Business Model and Strategy45

Social Aspects46

Summary47

Analysis47

Airbnb48

Outline48

How it Works48

General48

Hosts49

Business Model and Strategy49

Analysis50

Flightfox52

Outline52

How Flightfox Works52

Traveller53

Flight Experts53

Summary54

Analysis54

Getaround55

Outline55

How Getaround works55

Car Owners55

Renters55

Summary57

Analysis57

Kitsy Lane58

Outline58

How Kitsy Lane works58

Boutique Owners:58

Vendors:58

Revenue Model59

Summary59

Analysis59

Ruby Ribbon60

Outline60

Summary60

Analysis60

Birchbox61

Outline61

Summary61

Analysis61

Threadless62

Outline62

Summary63

Analysis63

ModCloth64

Outline64

Summary65

Analysis65

Headliner.fm66

Outline66

Summary66

Analysis67

Wikets68

Outline68

Proposition to User68

Revenue Model68

Summary69

Analysis70

TaskRabbit71

Outline71

How it Works71

Summary73

Analysis73

Yelp74

Outline74

How it Works74

Summary76

Analysis76

Kickstarter77

Outline77

How it Works77

Summary79

Analysis80

ezCater81

Outline81

How it Works81

Order-placement process81

Caters82

Summary83

Analysis83

Venuetastic84

Outline84

How it Works84

Event Planners84

Venues84

Summary86

Analysis86

Svpply87

Outline87

How it Works87

Summary89

Analysis89

onefinestay90

Outline90

How it Works90

Guests90

Hosts91

Summary92

Analysis92

RelayRides93

Outline93

How it Works93

Car Owners93

Renters93

Summary94

Analysis94

One Kings Lane95

Outline95

How it Works95

Vendors95

Members95

Summary98

Analysis98

Quirky99

Outline99

How it Works99

Summary101

Analysis101

Houzz102

Outline102

How it Works102

Members102

Professionals102

Summary103

Analysis103

Honest Buildings104

Outline104

How it Works104

Summary106

Analysis106

Sportaneous107

Outline107

How it Works107

Summary108

Analysis108

Copious109

Outline109

How it Works109

Summary111

Analysis111

Etsy112

Outline112

How it Works112

Summary113

Analysis113

Snapshots of 18 Social Commerce Platforms114

Facebook & Social Commerce115

Google & Social Commerce118

e-Commerce Solutions & Status118

Google Wallet (formerly Google Checkout)118

Google Shopping (formerly Google Product Search, Google Products & Froogle/Google Base)119

Google+120

Market Analysis121

Social Commerce on Facebook121

State of the Art Today121

Challenges with Facebook’s Current Approach to Social Commece122

Social Commerce on Google124

Analysis of 18 Leading Social Commerce Platforms125

What Problems does Social Commerce Solve?126

ROI on Social Media126

Maturity Current Online Retail Models127

Product Discovery and Search Engines128

Company-buyer Relationships128

Social Commerce Start-ups: Today & Future Potential130

Status and Future Evolution of Online Retail135

Status and Future Evolution of Social Networking137

Social Commerce: Future139

Conclusion140

The Story so Far140

Social Selling Described144

Underlying Assumptions144

How Social Selling Would Work144

Market Maker145

Social Sellers146

Merchants147

Buyers148

Challenges148

Inaccurate Content148

Negative Content148

Abuse Mechanisms149

Cannibalisation of Existing Online Sales149

Order Fulfilment150

Examples of how social selling could improve online shopping150

Social Selling on the Web150

Social Selling in Person151

Impact on Existing Retailers: Online and Offline153

Summary154

Market Forecasts157

Broadband Users157

Internet Users159

Online Retail Revenues161

Social Networking Users163

Social Networking Revenues165

Social Commerce Revenues167

Social Commerce Average Revenue per User169

Appendix171

Worldwide Segmentation171

Regions & Countries171

Market Forecasts172

About the Authors173

Andrew Sheehy173

Sara Foster173

Dr Dave Taylor173

Report Highlights




  • Over 40 social commerce start-ups
  • Definitions, analysis & insight
  • 175 pages, 67 tables & figures
  • All 7 social commerce segments
  • Facebook & Google
  • 5-year market forecasts

Ordering Information

Title: Social Commerce: Huge Potential Requires A New Approach
Pages: 175
Updated: 19 Nov 2012
License: Single User
Format: PDF
Delivery: Email and Online.
Price: £395
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