As I mentioned in my first blog, Facebook and Instagram are more than just a place to connect and share photos in emerging markets such as Thailand, Malaysia or Indonesia. Ask your Asian friends, especially the ladies!
As Nextshark.com reported, the flourish of eCommerce and social media as a virtual marketplace is no surprise in this region due to the digitization and media convergence, small to medium size enterprises and a shift from bundled to more fragmented e-commerce landscape.
How does it work?
When strangers trade amongst themselves online, how do buyers make a decision? For me, there aren’t many factors which indicate whether a seller is credible and trustworthy; the number of ‘Likes’, followers, frequency of response, and reviews and ratings from experienced customers.
Successful online vendors on Facebook and Instagram gain trust from customers by creating their own brand image and use themselves to promote a product. Often time, people are anxious that products purchased online would fail their expectations when the package arrive.
Thus online vendors, instead of just posting a picture of a product, they post a picture/video of themselves using/wearing that product to show its actual color, length, and size. They also encourage past buyers to post a picture of themselves wearing/using a product with hashtag or tag which allows potential buyers to access these posts, in exchange for future discount.
Moreover, most vendors inform colors/ sizes/ prices/ of each product in advance to reduce the hassle of customers having to send inquiries and vendors having to reply instantly. All customers have to do when they reach final decision is contact the vendors through various communication channels, mostly via Facebook messenger, Line, or Instagram message box. Normally, the product will be reserved for buyer up to 2-3 days till the fund which includes shipping fees is transferred or else it’ll be considered as not sold.
What makes social commerce better than traditional e-commerce and physical retail store?
It is easy for both vendors and buyers as it reduces costs of setting up businesses which also makes it cheaper to buy from them. Buyers get products delivered to their doorsteps within a few days with extremely affordable domestic shipping fees ($1-$3 dollars for a light-weight product such as clothes). Buyers also feel more comfortable as communication is fast and easily done. Thanks to Facebook messengers.
And that’s how me and the rest of Southeast Asia shop through social commerce. It’d be interesting to hear how people in other countries might do it differently! Also, since it is so easy to trade online, do you think it should be regulated in some ways to prevent the rise of fraude? Now it’s your turn to SHARE!
Nuttchanok's 
So relatable! Reviews and ratings are like a vote of confidence, to me. I will usually not make a purchase until I think it is worth my money.
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