It is no surprise that in the increasingly competitive realm of e-commerce, online shops are looking for new innovative ways to maintain their competitive advantage. Conversely, a new cadre of smaller competitors is disrupting these giants who fail to adapt and evolve. One of the most compelling innovations comes from the use of User-Generated Shops. In this article, learn how your customers can sell your products and dramatically increase your conversion rate.

What are these new innovative solutions?

There are a few key marketing trends in 2017 to be aware of, but the most compelling tactic we have seen at Socialy is by far, User Generated Shops (UGC). There has been a large discussion regarding User Generated Content (UGC) over the years. However, for the most part, UGC strategies have been thrust into the despairing back pages of marketers notepads.

Until now.

A new breed of innovative marketers and entrepreneurs have finally found the best way to harness the power of Instagram.

“What if… What if we make the user generated content surrounding our brand Shoppable?” they said. By showcasing user content generated by their own customers and making it Shoppable, brands have found a new exciting and unique way to differentiate themselves and drive sales.

This tactic is becoming increasingly popular. It is everywhere there are serious competitors. Look at giants such as Asos, PrettyLittleThing and SimplyBe. Likewise, smaller businesses in their own niche, such as Inkifi, an Instagram printing company have hugely benefited from incorporating user generated content.

Let’s look at it in action

Inkifi have an entire Shoppable Instagram page on their site filled with glorious user generated photos.

User Generated Content

User Generated Content

This strategy has created a more engaging and unique shopping experience for Inkifi’s users. Primarily though, it accelerates conversion rates and sales when coupled with product pages. There appears to be a psychological element that helps the conversion rate dramatically.

According to Inkifi, overall website conversion rate was up 4% with the addition of customer photos translating to massive increases in sales. This alone is a huge difference, but the main difference came from the conversion rates on product pages which doubled where customer photos are present.

It is no surprise then that large companies such as ASOS are also incorporating user-generated content, specifically Instagram photos, on their product pages:

As Seen On Me

As Seen On Me

If they have the same results as Inkifi, or even half the results, they could be increasing their revenue by millions. This is a ridiculously effective strategy. And most of all, it is beautifully simple.

But how does it work?

We know it works. But what are the underlying mechanisms behind User Generated Shops?

A more in-depth look at psychological triggers in conversion science highlight some of the key ways but a few examples are social proof, conformity and trust (call to authority).

Another factor comes from the enormous power influencers now have. Social media influencers are now the biggest catalysts in the product adoption curve. Getting this highly talented cadre on your side is imperative to remain competitive in the e-commerce industry.

The aesthetic appeal and talent of some users are inspiring. These influencers don’t just sell a product, they sell a brand and lifestyle, not as advertisers, but as customers.

Key takeaways that you can use right now

-Start to encourage user generated content surrounding your brand. See our encouraging user generated content guide.

-Learn more about how you can supercharge your e-commerce success on our industry leading e-commerce blog.

-Install a Shoppable Instagram like, well, the one we make. Request a free 21-day trial here.