Social Media is Making E-Commerce Border Agnostic

Originally used as a convenient way of connecting over the internet, social media has become an all-encompassing force that caters to endless interests, purposes and needs. For consumers, it’s creating a boundary-free world where shoppers can find and engage with brands regardless of their geographical location. 

A recent survey conducted by Global-e explored the ways in which social media has affected international direct-to-consumer (DTC) e-commerce. According to the global survey, in which we reached out directly to thousands of cross-border e-commerce shoppers across nine different markets, 75 percent of respondents reported purchasing a product from an international brand after engaging with it on at least one social network.

Yet, while social media is clearly helping drive traffic to international brands’ websites, converting this traffic into customers remains a challenge for retailers catering to an increasingly globalized audience.

Why? Because the cross-border e-commerce market isn't simply one global market; it consists of hundreds of individual markets, each containing consumers that differ in their shopping behavior and considerations. Ultimately, brands need to ensure they're prepared to cater to a vast array of international shoppers. Otherwise, followers will remain simply followers.

Opportunities Galore

Many international shoppers are discovering and engaging with brands via social media, a major boon for e-commerce. This comes as no surprise. Whether it be Instagram or TikTok, these platforms carry with them massive user bases spanning continents and demographics. Retailers were quick to leverage social media to catch the attention of consumers, most notably, younger generations, via both organic and sponsored content, as well as influencer campaigns, the latter’s marketing value more than doubling since 2019. 

According to Global-e’s survey, social media was the top channel for discovering an international brand before making a purchase amongst Gen Z and millennials, with 55 percent and 54 percent respectively reporting having done so, topping online marketplaces such as Amazon.com and eBay, as well as online search. 

This could be a major opportunity for retailers. Globally, we already see that millennial and Gen Z shoppers show greater interest than other generations in online shopping. In the U.S. alone, it’s estimated that Gen Z will surpass Gen X in its number of digital buyers by 2025. And Gen Z’s estimated disposable income is only rising.

It’s important for retailers to recognize that while consumers around the world discover, follow and engage with brands via social media, they also want to purchase from them directly. This holds particularly true with Gen Z shoppers, as 61 percent of this cohort prefer making a purchase directly from a brand’s website, according to Global-e’s survey.

The majority of consumers around the world are open to shop from brands outside their country. Social media ignites consumer excitement. However, unless retailers convert international traffic into sales, they're essentially leaving money on the table.

Converting Followers Into Customers

Converting traffic into revenue is extremely important — i.e., getting browsers from the social platforms to the brands’ websites to actually buy something. Retailers should be ready to cater to their international audiences and their diverse needs. They should be prepared to offer international shoppers experiences that are tailored to their individual markets. 

Social media may bring more international traffic, but once it’s there, the key to maximizing revenue is ensuring the DTC retail journey is a localized, seamless shopping experience. Everything from checkout to delivery must meet the customs and standards consumers have grown to expect when shopping domestically, regardless of where the seller is located. If not, retailers risk not retaining them as customers.

Going Abroad and Beyond to Cater to International Shoppers

Prolonged inflation and uncertainty continue to plague an already precarious economy. U.S. consumer sentiment is only growing worse because of it. Selling to international consumers is a key strategy for e-commerce brands interested in shoring up revenue streams. Thus, while social media presents a major opportunity for brands to expand their global audiences, retailers need to be prepared to convert that international traffic into customers.

Matthew Merrilees is CEO, North America of Global-e, a platform to enable and accelerate global, direct-to-consumer cross-border e-commerce growth.