Guess which two Social Media platforms drives most orders for top fashion retailers?
Pinterest and Instagram have undoubtedly become the most browsed social media platforms today. While they deliver relatively lesser traffic, Pinterest and Instagram deliver the highest average order value from mobile devices. The order values for large fashion retailers are bigger than Facebook on Pinterest and Instagram. Along with this, the overall mobile order value delivered via paid ads is higher than those that come via unpaid ads.
Nosto, an e-commerce personalization, and retail AI platform, did a global analysis and tracked the source of mobile traffic and orders to large for online fashion retailers, based on the last click. The analysis revealed that Instagram and Pinterest deliver the highest average order value (AOV) on both paid and unpaid social media. The AOV on Pinterest is $154 paid and $68 unpaid. While on Instagram the paid AOV is $103 and unpaid AOV is $65. These numbers have been compared to Facebook who’s paid AOV is $69 and unpaid AOV is $58.
When it comes to conversion rates, Facebook stands on top of the list with a conversion rate of 1.24% unpaid and 0.73% paid. Facebook is still the biggest driver of social media traffic to fashion retail. It generates more orders overall but they are smaller on average.
Snapchat on the other hand trails the other social media platforms in both conversion and AOV. This is because Snapchat is more of a discovery channel where consumers go for inspiration rather than immediate purchases.
As a result, the average order values on unpaid social media activity are lower. This shows that when the consumer clicks through from a paid social media ad and make a purchase, they tend to buy more. But, the unpaid conversion rates are higher which suggests that consumers from these sources are more committed to making purchases overall.
Jim Lofgren, the CEO of Nosto says “The high Average Order Value the study demonstrates for Instagram and Pinterest shows the potential they have within fashion retail, particularly as both are adding new features to support e-commerce. However, right now their low direct traffic and lower conversion rates mean there is a risk that they become destinations purely for branding plays. Instagram has managed to drive brand awareness for fashion brands by allowing them to leverage influencers, but can Instagram and Pinterest manage to sustainably drive e-commerce revenue?”
A study named Fashion Retail On the Go, tracked how unpaid and paid channels drive traffic, conversion rates and order value for fashion retailers (with annual sales of $50m or more). The study is based on 1.9 billion visits to e-commerce sites globally between November 2018- January 2019. 24% of these were enterprise fashion sites. The research tracked all sources based on the ‘last click’.
The report’s findings suggested that 17% of UK retailers were missing out valuable business because they were neglecting to add social sharing options for their customer’s purchases. This lead to a 4% decline. The findings also showed how Instagram was neglected despite its in-built shopping feature and inherent sharing capabilities which makes for a good opportunity for the retailers to connect with their potential customers. The report revealed that just saw an average increase of just over 4000 followers.
Overall, Instagram and Pinterest have become more than just a social media platform. These platforms have become integral for brands to market, promote and sell their products. It is the convenience of that grips the customer’s attention and leads to them buying products directly through these social media platforms. Brands should see them as an opportunity to grow and expand their business and should keep up to date with everything that these platforms have to offer.