What are retailers
concerned with? Two things: 1. Reaching the millennials 2. Mobile
conversion
How do you do that? Social
Commerce
What is Social Commerce? It is a subset of electronic commerce, involving social media
networks to assist in online buying and selling of products in services.
Do you mean like
shopping from Facebook, Pinterest, or Instagram? No, they simply were not
designed to be shopping platforms. Deena Varshavskaya, founder of social
commerce shopping platform, Wanelo, says “We don’t go to there to shop.” She claims
“If a user stumbled upon a desired item on Pinterest, for example, it’s hard to
find if the product is in stock, if the store has it in their size and if it’s
on sale.”
What is Wanelo? Think of Wanelo
(“wah-nee-loh,” short for Want, Need, Love) as a digital mall, where people can
curate, discover, and buy products on the internet. Wanelo has over 12 million products from over 350,000 stores, including independent boutiques and sellers you have
never heard of.
Digital Malls vs.
Regular Malls?
- A regular mall has only 150 stores, while the
number of online stores is endless.
- In the Nineties, consumers visited malls about
two times a month for about four hours at a time, driving $1 trillion in sales (Strugatz)
- Today, 15% of malls are expected to shut
down over the next decade (Strugatz)
- 87% of Millennials never leave their
phones and can spend up to three hours on social networks every day. One third
of them don’t frequent malls, 84 percent hate advertising and 50 percent shop
online nearly every day for at least an hour. (Strugatz)
How does this bridge
the gap between online and store? To be determined, but Nordstrom recently
rolled out Wanelo wall displays in 107 doors, featuring styles it already
carries that were rated most popular by Wanelo’s users.
Why Wanelo?
- The average product on Wanelo gets 140 saves and
19 buy clicks, versus Pinterest, where a pin typically sees about 10 repins. (Strugatz)
- Urban Outfitters’ Wanelo shoppers convert at a
rate four times greater than any other social network (the store has
implemented a Wanelo button alongside other social media action buttons on
product pages). (Strugatz)
- Sephora called the platform its “fastest-growing
social platform.” (Strugatz)
- Farfetch said Wanelo converts five times greater
than Pinterest. (Strugatz)
Why is it useful for
users and retailers?
- Users èThe content on Wanelo is user-generated and users can only
post items from verified retailer sites. Therefore, users go on Wanelo to shop
accurate information on product availability and pricing.
- Brands èA brand can claims its page and once it does this it can
editorialize collections to engage with fans. Brands like Urban Outfitters have
more followers on Wanelo then they do on any other social media platform.
How does Wanelo
successfully solve the two concerns of retailers? 1. With over 10 million
users, it has continually reached Millennials 2. The website is primarily
accessed via its mobile app and conversion is also completed here