Cashing In on the New Social-Shopping Trend

This article was written by Kim T. Gordon of Entrepreneur.com

With the vast majority of Americans researching products on the Internet before they purchase them in stores or on the Web, it's no surprise that a whole new form of shopping is emerging. "Social shopping" is the intriguing offspring of social networking and online shopping, and it can offer your growing business just the marketing leg-up it needs.

Unlike the many retail sites that display products for sale, many increasingly popular social shopping sites (some still in beta testing stages) consist of product listings from site users who recommend their favorites, often with a strong emphasis on what's hot, new and exciting. Insiders know that listing their own products on the right social shopping sites can build buzz that leads to sales.

This accessible form of word-of-mouth marketing offers a wealth of opportunities for entrepreneurs with limited budgets. To help you navigate these new waters, let's take a look at why and how social shopping works.

1. Online research leads to sales. Almost 90% of respondents to a BIGresearch "Consumer Intentions and Actions" survey conducted in June 2006 said they occasionally or regularly research products online before buying them in a store. When it comes to online purchasing, a study released by Yahoo! (YHOO Quote) and OMD found that nearly three-quarters of the people surveyed use trusted, familiar Web sites when purchasing online, and the majority (54%) say the Internet is their most trusted shopping information source.

So no matter whether you sell exclusively online, through a brick-and-mortar store or both, influencing online shoppers can have a profound effect on sales.