The average dollar size of purchases referred to e-commerce sites by social media is now $US87, an increase of 14% year-over-year, according to the most recent quarterly report from Monetate.
Search and email referrals still result in higher average order values, but social media order sizes are growing faster in percentage terms.
Interestingly, fourth quarter holiday sales last year had little effect on the size of purchases referred by social media, whereas search and email order sizes spiked. This could be a reflection of where retailers spend their marketing and ad dollars during the busy shopping season. Or it could be confirmation of the fact that social media browsing isn’t tied to high-intent shopping. When consumers really want to buy something, as they do during the holidays, they go to search engines or click on e-mail offers.
Although social commerce shows promise in average order value, it still badly lags search and email in conversion rates. Less than 1% of people referred to an e-commerce site by social media turned into paying customers. Email remains the most effective referral channel for conversions.
Keep in mind, conversion rates are calculated by last-click attribution, which doesn’t tell the whole story of how a consumer turned into a customer. Many consumers discover products on social media, or are influenced by retargeted advertising on social media. They may go directly to an e-commerce site days later to purchase.
We discuss social commerce’s role in shaping the entire shopping process in a recent report: How Social Commerce Is Going After The Entire Purchase Funnel
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