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Can you have a commerce strategy that maximises sales and creates joy for shoppers?

By Charlotte McEleny, digital editor

June 15, 2021 | 7 min read

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With consumers now more than comfortable with e-commerce and most brands having the basics set, it’s time to fast forward commerce strategies. The Drum has had a sneak peek at Facebook’s Fast Forward Discovery Commerce Summit to give readers the head start.

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The worldwide e-commerce growth rate for 2021 is predicted to be 14.3% in 2021 with retail e-commerce sales predicted at $5 trillion (Source: emarketer, Global eCommerce Update 2021). Many of the e-commerce trends are born in Asia Pacific and this region by far leads the global spending on eCommerce.

But the intentional shopping for products while necessary is missing ‘joy’. That’s what Facebook Discovery Commerce system brings to life. It drives serendipitous discovery where products find people, delivering an experience that’s personalized and brings joy to your shopping experience. This helps brands build deeper consumer connections.

What business models drive Discovery Commerce?

As you embark on the journey of discovering the right commerce business models for your brand, we had the opportunity to discuss with Facebook the full spectrum of the Facebook Discovery Commerce system that can be implemented for a variety of business opportunities.

Partnership with Retailer/E-tailer

If you do not have your own online site then one of the easiest, and fastest, commerce models is to partner with retailers or e-tailers. You can maximise these partnerships to reach and convert more shoppers. With today’s shopping journey increasingly becoming omnichannel, there is a growing emphasis on digital and this could be your first step towards fast-forwarding your commerce journey.

According to Facebook, Collaborative Ads allows brands and retailers to collaborate where retailers empower brands to run performance marketing campaigns for their products, driving sales on the retailer’s site or app.

Did you know that one month after adding their first brand connection, brands running Collaborative Ads with product catalog sales see a median return on ad spend of 2.37X? (Source: Return on advertising spend is based on ~4000 Facebook Collaborative Ads campaigns run over 3-month period (2/1/2021 – 5/1/2021))

Chat/Conversational Commerce

Now if you are looking for a more customized solution, then chat or conversational commerce could be the way forward for you. According to @BainAlerts, Facebook chats are powering a new $48 billion market in social commerce in Southeast Asia.

Conversational Commerce is when people and businesses connect with each other through chat with the intent to drive the purchase of goods or services. Across industries, messaging solutions - whether it's chat automation or in thread payment gateways, have allowed businesses to transform how they go-to-market. And if you ask Facebook why it is successful, it is because it provides the best of online efficiency and in-store personal relationship experiences to help people from discovery to purchase.

Direct to Consumer/Subscription

If you would like to build and nurture relations directly with consumers then Direct to Consumer (DTC) and Subscriptions could be the commerce solution for you. Direct to Consumer is a business model that allows manufacturers to sell directly to consumers, removing the need for retailer distribution.

Facebook partners with various DTC players like Shopify and Shopline for a seamless and frictionless consumer experience. In fact, 76% of adults globally believe that in the future people will subscribe to more services and own fewer physical goods (“The end of ownership” by Zuora, international survey of 13,459 adults across 12 countries, 2019)

Cross Border

There was an increase in online cross border commerce across markets by +18% (Source: GlobalE COVID19 - The impact on Cross Border eCommerce, May 2020). Today, cross border discovery is happening online and as we approach the year-end at least one in two shoppers have made at least one cross border purchase as they look for more value and novelty.

Last but not least, if you are looking to sell internationally or venture outside of your current market, then Facebook says it can enable you with the right solutions to reach global audiences and start your cross border commerce journey.

The Drum’s top sessions at Fast Forward Discovery Commerce:

Now that we have piqued your interest in Discovery Commerce, it’s time to find out more about the many strategies to create a more joyful commerce experience for your customers.

Shoppertainment: the APAC trend that’s gone global

Asia Pacific is leading the world in driving new, more joyful ways of shopping driven by social media and marketplaces. Accelerated during the pandemic, as people sought out more social, visual ways to shop, the shoppertainment category is now mainstream.

Watch this session with Facebook’s client solutions manager, CPG, Evonne Yap, who uses an example from FrieslandCampina’s brand Friso Gold to show how social interactivity and entertainment can drive engagement and sales.

Harnessing the power of chat to drive personalization and incremental commerce

Did you know that shoppers are more likely to buy from businesses that they can message or chat with? L’Oréal Vietnam has tapped into this consumer behavior to establish Conversational Commerce as a new and sustainable commerce channel - starting with very humble beginnings, scaling and then continuing to innovate.

This talk features L’Oreal Vietnam chief digital and marketing officer, Pierre-Olivier Guy, who shared how the brand’s use of chat for commerce drove more engagement with its customers, who benefitted from a more personalized experience. While the brand itself drove incremental revenue from purchases.

Privacy’s impact on commerce: keeping the signal bright

Globally, major changes are happening to the way digital advertising works. Driven primarily by privacy concerns, these changes offer an opportunity for marketers to keep the best of personalisation and targeting, with becoming more conscious of consumers' concerns.

This session with Bie Mwengela, from the Facebook global CPG product team, acts as a step by step on how brands can still make digital advertising as effective as possible.

All this and more…

If you are looking to accelerate your journey with some of the most successful executions in commerce, look no further. The sessions we have teased and more will be live at Fast Forward Discovery Commerce Summit on 24 June, 10-11am (GMT+8). Don’t miss out on this! Register for the event here.

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