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Social Commerce Chapter

Here is the beginnings of the entire chapter… almost done. Any thoughts or comments are appreciated.

Social Commerce


Premise & Major Points: 


  • Traditional ecommerce, dinosaurs & dodo birds
  • What is social commerce and where is it headed?
  • Are the eBay’s, Amazons & Paypal’s of the world tuned into?
  • How can you use the Social Ecommerce advantage in your business?
  • Social Commerce at applies to your TuYu Social Network Site


1000 years ago when the Chinese first introduced spices to the Europeans you can imagine what type of trade commerce occurred. Two men sitting with the weirs, wine in hand and a huge desire to do business. The usual small talk ensued, discussion of value, benefits and building of trust in the shortest time frame possible to seal the deal. The thoughts that must have run though their heads are probably no different than the sales process that occurs all over the world today. A great fear that you may be getting screwed and of course the other major emotion involved in commerce…greed! 

Remember fear & greed, as this underlying theme is why Social Commerce will over take the traditional ecommerce model online, and will trickle down and eventually integrate with offline commerce as well.


Traditional eCommerce, Dinosaurs & the Do, Do Birds 

 It’s funny that we can call ‘eCommerce’ traditional in any sense of the word as it is less than 25 years old. Reality is that just like the industrial revolution massively and rapidly changed the world in the last century, eCommerce has matured even faster. With blinding speed eCommerce  has over taken ??? 3 cents of every dollar spent in the
United States alone.  Insert reference

So why then the reference to dinosaurs & dodo birds…extinction?


Quite simply traditional eCommerce will morph into Social eCommerce in the coming years, all but leaving digital footprints and electronic fossils behind.


Here is why?


The explanation lies in the root of the emotional underbelly of ‘Traditional eCommerce’. Unlike in offline commerce where a buyer and seller can do a physical, verbal and tactile sales process to gauge their level of fear and greed, in other words their comfort level. This just doesn’t exist in online traditional ecommerce.


In short there is no substitute for seeing someone’s eyes, the sweat on their palms or even hearing the shakiness in their voice over the phone. NO, Social Commerce is not simply adding video & audio interactivity to the web. Yes, this is part of it, but does not define “Social commerce”


 Traditional eCommerce fails to give the ‘buyer’ the ability to effectively reduce or eliminate their fears or gauge the greed level of purchasing from their prospective seller. In turn, two sellers selling the same widget online are nearly indistinguishable, even though one could be a total scam artist and the other the most honest business person in the world.


‘Social Commerce’ levels the playing field between buyer and seller, and allows trust based businesses to rise to the cream of the crop, and scam artists to get left in the dust.

So just like the dinosaur and the dodo bird, extinction is on the horizon for Traditional eCommerce… good riddance!


What is Social Commerce? 

Social Commerce is a trusted environment where friends, family and acquaintances dynamically contribute content to the referral and sale of goods and services though positive and negative feedback, reviews, ratings and testimonials regarding their experiences past & present. In short, social commerce is a trusted environment of which prospective consumers make buying decisions based on the advice of a network of friends and family, not strangers they don’t know or trust. Lee Raito & Sam Heyer  

Social commerce is not just targeted focus groups; it does not mean throwing up a community forum or taking your best clients to dinner.


You will note that Social Commerce has nothing to do with the type of electronic shopping cart, which payment provider is used or the type of product or service in question. It will however, change all of these things and morph every step in the flow of an online purchase from start to finish and beyond.


By simply applying the ‘Social Commerce’ definition to every possible life stage of a product or service, from creation, to production to sales and refunds, you can begin to see the infinite power of ‘Social Commerce’.


For example, if a car dealership where to ask the following question about the cars displayed on and the overall functionality of their company website, imagine the result.


Is our current website a trusted environment where friends, family and acquaintances dynamically contribute content to the referral and sale of goods and services though positive and negative feedback, reviews, ratings and testimonials regarding their experiences with our products and services past & present? 


Then they ask.


Is every customer contact point for our company a trusted environment of which prospective consumers make buying decisions based on the advice of a network of friends and family, not strangers they don’t know or trust. 

Shameless Plug:   

Any person or business can have their own Social Commerce powered website because of the technology we have created at   


When a fundamental business shift benefits both buyer and seller it will become main stream until such time somebody builds a better mouse trap. The industrial revolution created millionaires and billionaires. Until virtual reality become main stream, “Social Commerce” will become and remain the preferred method of transacting business online, and those who are at the forefront become millionaires and billionaires. Is that you?


“Social Commerce” is the preferred method of doing business offline already… we call it “Word of Mouth Advertising!” Social commerce so closely emulates word of mouth advertising the only distinguishable difference between the two is that one occurs online.



Where is Social Commerce headed? 

There was a hint earlier. Quite simply the only thing that will overtake Social Commerce is Virtual reality or Virtual Commerce. When you can visit a virtual car dealership with your dad (who may live on the other side of the world), test drive that new Ford-Honda-Hybrid Hover Car and let your old man negotiate an amazing deal, only then will Social Commerce morph. Elements of Social Commerce will remain until the day we plug in, instead of turning on our PC.


In the mean time as we are at the beginning of Social Commerce, there is a ton of progression and the future is unbelievably bright no matter what side of the equation you are on.


Here is the future.


Buyers will look forward to hearing their friends and family’s views on the products and services they all buy. Your darn rights they are going to check online to see what vehicles, BBQ, and books their friends are buying, as that saves them a phone call to the 30 people they truly trust.


In the near future this will be the preferred mechanism for searching products and services online. If there was ever a company that could make more relevant searches for products and services than Google. We believe TuYu Inc eventually will make searching for products and services 100x more relevant as you are searching for who, what, when & where your friends and families are buying. Google still remain the king for all other search… this goes undisputed. 

Sellers & Service Providers who catch on early will no doubt benefit the most, as eventually all commerce will be socially driven. In social commerce the cream will rise to the top, and by providing a rich dynamic environment for customers several key things will happen. Evangelist customers will spread the word and effortless expand business, but more importantly you will see exactly what products and service are loved, hated, need changing or have become obsolete. There will be no more guess work.


Jack the owner and president of a plumbing company (employing 1200 plumbers nationwide) who was smart enough to shut down his traditional website, and open up a social driven network, see trends in his business in hours and days not years. He reviews comments from customers and their friends and family daily, and loves sending those emails and hand written letters to thank them. In fact, he spotted a potential disaster last week with a disgruntled employee on the east coast. This manager just didn’t care anymore, and obviously his lack of service was commented on by a recent customer rating their recent service low and . The customer was shocked because her sister was so happy.  Jack jumped on the situation right away and averted a disaster that could have take months or years to come to his attention. Most importantly he protected his company’s bottom line and reputation.


The future is in the business process. As Jack’s business is founded on a social networking platform such as, all of his customer pay him online. Part of his online payment process, which customer can do on his plumbers hand held PDA or on the customer cell phone, is a simple on click rating of the service. The client then receives requests to provide a comment like the friend who referred them, and appreciates the referral by giving their friend discounts on the next service the receive.             


London Plumber

It’s very good article.


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