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  • Writer's pictureHigor Barbosa

How will user-generated content (UGC) shape the future of e-commerce experiences?



In a world where the consumer's voice resonates across digital borders, it has emerged as a transformative force in online retail, offering an authentic voice to consumers and shaping how brands interact with their audiences. The relevance of user-generated content (UGC) has never been more evident than now, with consumers seeking more engaging and personalized shopping experiences.


Recent studies shed light on the importance of user-generated content (UGC). According to a report by Salsify, about 40% of buyers consider UGC extremely or very important when making purchasing decisions.


Origin of UGC

Originating from the early days of the internet, where users began sharing their opinions in forums and blogs, UGC has evolved to become a central pillar in the digital marketing strategies of major brands. To grasp its current dimension, user-generated content (UGC) is now seen as a crucial element in enriching the online shopping journey, offering a genuine perspective and influencing buying behavior.


Significant Benefits for Brands and Consumers

User-generated content (UGC) is a powerful tool that brings numerous benefits for brands and consumers. For brands, UGC not only reinforces trust and authenticity, as opinions from other consumers are highly valued, but also fosters the creation of engaged communities. These communities act as brand ambassadors, organically and authentically promoting products and services.


Moreover, UGC is an excellent ally in brand loyalty building and plays a crucial role in SEO. User-generated content often echoes the language and searches made by consumers, significantly enhancing brand visibility on search engines and consequently increasing organic traffic to e-commerce sites.


The dynamics generated by UGC trigger a cascade effect in the consumer's purchasing journey. By providing valuable insights into products, UGC directly influences purchasing decisions, becoming an essential mechanism for understanding and better addressing the needs and desires of customers.


UGC Stimulus Strategies

To leverage user-generated content (UGC), companies can employ advanced and creative strategies. Customizing the online shopping experience is crucial, and this can be achieved through intensive use of Artificial Intelligence to analyze user data and behavior. This analysis allows brands to offer highly relevant and personalized recommendations and content.


Furthermore, integrating practices like Social Commerce and Social Proof can be extremely effective. Social Commerce can be directly applied to the brand's store, bringing the dynamics already applied in social media to the brand's own store. Social Proof relies on social interactions and endorsements, such as reviews and recommendations, to build trust and positively influence consumer purchasing decisions.


Incorporating these approaches not only stimulates UGC creation but also strengthens the relationship between consumers and brands, creating a virtuous cycle of engagement and trust. This results in a significant increase in online store performance metrics. See some cases here.


Challenges and Legal Considerations

Despite its vast benefits, user-generated content (UGC) poses challenges and legal implications that cannot be ignored. Content moderation is essential to ensure that the material is relevant, appropriate, and does not infringe on copyrights or conduct standards. This requires significant resources and can be complex, especially on platforms with a large volume of UGC.


From a legal standpoint, compliance with regulations such as the General Data Protection Law (LGPD) in Brazil and the General Data Protection Regulation (GDPR) in the European Union is fundamental. These laws impose strict obligations on companies regarding the collection, storage, and processing of personal data. Companies must ensure that UGC does not violate user privacy and that data is used transparently and with appropriate consent.


Moreover, UGC can involve liability issues, where the company may be held accountable for defamatory, discriminatory, or otherwise harmful content. Therefore, it is crucial to establish clear UGC policies, implement effective moderation systems, and stay updated with data protection laws to mitigate risks and protect both users and the company itself.


Case Study

The latest innovation from Vurdere, the Seller Portal on Mercado Livre, represents a significant innovation aligned with UGC and future trends in online shopping experiences for several reasons, including:


  • Engagement and Quality Content: The portal addresses the challenge of low engagement on marketplaces by encouraging sellers to create more detailed and informative content for their product pages. This not only improves the user experience but also increases the likelihood of sales conversion.


  • Direct Feedback and Brand Visibility: By offering sellers direct access to customer feedback, The Seller Portal allows them to promptly respond to consumer needs and concerns. This increases brand visibility and strengthens customer confidence as they see their opinions valued and considered.


  • Reduced Operational Costs: For marketplaces, the portal helps reduce operational costs by decreasing the need for manual intervention in content management and customer service, as sellers can manage their interactions with consumers more efficiently.


  • Enhanced Customer Service: With more comprehensive product information and the possibility of personalized service, customers have a more satisfactory shopping experience. This not only improves brand perception but also contributes to customer loyalty, a crucial aspect for long-term success in e-commerce.


Conclusion

UGC is more than a trend; it is a fundamental transformation in e-commerce experiences. With the continuous evolution of technology, UGC will become even more integrated and vital for brand success.


Vurdere, with its Seller Portal on Mercado Livre, is at the forefront of this change, offering solutions that not only meet the current needs of sellers and consumers but also pave the way for the future of e-commerce.


Develop Social Power with Vurdere!

If you are a Mercado Livre seller, we invite you to explore and join the Seller Portal. Click here and connect with millions of customers on the largest marketplace in Latin America.

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