Think back to your last major online purchase. You probably spent some time on the web, researching all of the options you had to choose from. You read reviews of the product, compared pricing between different e-tailers, and if you’re anything like me, shared a product with your friends and family via e-mail or your favorite social platform for consideration prior to making the final decision.
This is social shopping. Niche online communities that make it easier than ever to share, rate, collect, personalize, review, interact with, and purchase products online. It has become a cost-effective way for e-tailers to further strengthen the relationship between their brand and customer.
A few companies that do it well include:
Gilt Groupe
One of the original flash-sale sites, Gilt Groupe offers its members high-end goods at discounted prices. The deals site focused initially on designer fashion, but has achieved horizontal integration into luxury travel, food, and events through its subsidiaries Jetsetter, Gilt Taste, and Gilt City.
Fab.com
Fab stands out among the seemingly ever-growing number of flash-sale sites by offering a wide variety of products, and arranging recent purchases and favorites into an addictive news-feed format. After requesting membership, users are immediately put on a waiting list, adding a feeling of exclusivity to the site. Users can easily comment on items and link their tweets to the live feed, adding to the social shopping experience.
Joyus
We already know that people love to watch videos online. So, why not combine videos with shopping? Joyus has pioneered a new integration of watching and shopping, allowing users to see a product in action during their shopping experience. The tutorials are helpful and informative, and provide immediate access to the products they feature. Watch out for this space in 2012!!
Flash-sale sites and tutorial videos possess some barriers to entry; not everyone can offer their product at a discount, video production gets expensive, etc. Niche social networks are another way to build your brand, engage a broader audience, and maybe even generate sales.
Here are a few cost-effective options that may benefit you and your business:
Pinterest
Pinterest is an online bulletin/mood board, urging users to “organize and share things you love.” People have found a variety of uses for Pinterest, including wedding planning, recipe organization, and DIY-experimentation. This is not a forum for bragging about your product or trying to promote your message, instead it is an opportunity to capture a customer’s imagination and share inspiration. Clothing e-tailer Modcloth has been particularly successful in building a Pinterest following, as described on Mashable.

Svpply
Similar to Pinterest, Svpply allows users to share a wide assortment of internet finds. However instead of sharing videos or images, Svpply focuses exclusively on products. The site can function as a public online wish-list, or simply a space to display one’s status as a “tastemaker”.

Polyvore
Clothing lovers can spend hours (ok, days) combing through Polyvore’s beautifully curated “sets”. Part social network, part online style aggregator, Polyvore allows users to create a set comprised of clothing, accessories, and home items and then serves up links to purchase the featured products online. Each set creator has a profile, and shoppers can follow their favorites for inspiration. Polyvore has nailed it: the perfect combination of a friendly online community and ease-of-purchase.

Naturally, products that are visually appealing have an edge in the niche social network game. Most of these sites function as a sort of digital moodboard, allowing people to express themselves by sharing images that reflect their preferences.
Social shopping has added another layer to the already complex social media landscape. The benefits to consumers are pretty obvious, but how can businesses effectively harness social commerce? I came up with a short list of steps that any business can take to get in on the social shopping action:
Find your niche
Even if they are not directly connected to commerce, just about every product category has its own version of an online wish-list. This is a place where highly engaged consumers are advocating their favorite brands and sharing them to a broad audience. Pinterest and Svpply are general-interest sites where users share information about products. There also are many similar sites that focus on a specific market. For example, a clothing designer could maintain a profile on Polyvore, a restaurateur might share the latest food finds on Foodspotting.
Get Visual
The social shopper communicates using product photos and videos. If your products are not pictured, or your photography is not appealing, you are effectively shutting out customers who might share your product with their network. Roll out the welcome mat by displaying photos that are compelling to your audience and tell the item’s story. Make every photo share-worthy!
Join the (Third) Party
Explore partnerships with flash sale sites such as Fab.com, Gilt Groupe, and The Foundary. Many retailers have found taking a hit on profit margin in order to gain a broader reach can be beneficial in the long run.
//Katie Boyd, intern