Klarna is steadily ramping up its stake in the social commerce industry. In mid-July, it acquired social shopping startup HERO in mid-July. Now, it’s moving ahead with plans to buy APPRL, an end-to-end influencer marketing software meant to help ecommerce brands connect with content creators. Klarna’s interest in the space begs the question — WTF is social commerce?
The term ‘social commerce’ was first used by Yahoo! in 2005, when it promoted its ‘Shoposphere pick lists’ highlighting their most popular products. Very simply, social commerce is the use of social networks to conduct ecommerce transactions. Think Instagram’s Shopping or Facebook’s Shop. Both platforms started out as social media platforms but their latest iterations allow businesses to promote and sell products on their social media pages.
Difference between ecommerce and social commerce
Ecommerce is the process of buying and selling goods online but that typically happens through the seller’s website or app or a larger online marketplace such as eBay or Amazon. Social commerce is a subset of ecommerce, the difference being that the transactions take place on a social media network instead of an online marketplace or website.
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