Social commerce is a subset of electronic commerce that involves social media, online media that supports social interaction, and user contributions to assist online buying and selling of products and services. The term social commerce was introduced by Yahoo! November 2005 which describes a set social media management contract pdf online collaborative shopping tools such as shared pick lists, user ratings and other user-generated content-sharing of online product information and advice.
The concept of social commerce was developed by David Beisel to denote user-generated advertorial content on e-commerce sites, and by Steve Rubel to include collaborative e-commerce tools that enable shoppers “to get advice from trusted individuals, find goods and services and then purchase them”. The social networks that spread this advice have been found to increase the customer’s trust in one retailer over another.
Social commerce aims to assist companies in achieving the following purposes. Firstly, social commerce helps companies engage customers with their brands according to the customers’ social behaviors. Secondly, it provides an incentive for customers to return to their website. Thirdly, it provides customers with a platform to talk about their brand on their website.