WhatsApp Commerce: Key Features & Best Practices

Take a look at how to use the most popular messaging app for sales.

While it would've been unbelievable even five years ago that WhatsApp Commerce would become a widespread practice, today it has become exactly this. With over 2 billion users worldwide and rich functionality, WhatsApp messaging app allows businesses to engage directly with customers, showcase products, and even process payments. Combined with the fact that the global market size for conversational commerce is estimated at $13.3 billion and expected to reach $44.7 billion by 2030 (CAGR of 27.5%), it makes a strong case for using the messaging app as a primary channel for customer-brand communication and sales.

In the article, we’ll explore how WhatsApp commerce works, its benefits for businesses, best practices for selling via WhatsApp, and how to set up your own WhatsApp store.

Table of content

What is WhatsApp Commerce?

Features like product catalogs, automated responses, and in-app payments available in WhatsApp Business allow companies to create an interactive shopping experience directly within the messaging app.

Benefits of WhatsApp Commerce for Companies

There are multiple reasons why WhatsApp Commerce is becoming an increasingly popular channel for customer-brand communication. Businesses use it to attract new customers and strengthen bonds with existing ones.

Personalized communication in a familiar channel

WhatsApp commerce allows brands to communicate with their audiences in real time in a personalized manner via direct messages and share news and engaging content publicly via the WhatsApp channel. Since WhatsApp boasts a high adoption rate in many countries, it is often easier for people to follow their favorite brand and get in touch with its reps in the app rather than familiarizing themselves with other platforms.

A company can send personalized recommendations, order status updates, and even holiday greetings to its customers, creating a sense of personal connection not possible with mass mailings. As David Kurzmann, CEO of Women's Best - a fitness apparel store that was an early adopter of WhatsApp Commerce - said, "By sending customers WhatsApp notifications, we can keep them updated on their orders and answer any questions they may have about their products."

High open rate

Another aspect, where WhatsApp communication beats email campaigns is its high open rate, which reflects customer engagement. This means that any message sent using the means of WhatsApp Commerce is likely to be read by a recipient, which drastically increases the effectiveness of marketing efforts and the speed of issue resolution.

Shopping made easier

Thanks to product catalogs and WhatsApp Pay features, the messaging app users can now view and purchase items without even leaving it to visit an external website. The whole process, from product discovery and chatting with a sales assistant to the purchase itself and post-purchase support, can be done within the WhatsApp platform. Thanks to this, WhatsApp Commerce greatly improves overall sales conversion.

Budget-friendly and scalable

Small businesses can use the WhatsApp Business solution for free, while larger companies can use the WhatsApp Business API, with pricing based on communication volume. It is always possible to start WhatsApp Commerce with minimal expenses and gradually scale activity, based on customer feedback and business results.

Secure communication

End-to-end (E2E) encryption used as a default method in WhatsApp ensures that customer chats are protected from third-party intrusions and data leaks. This feature makes it possible to use WhatsApp Commerce for sales and marketing, even in such niches that are characterized by using a lot of sensitive and personal data. Also, knowing that their communication is kept safe, clients are more likely to have increased trust in a brand.

WhatsApp Commerce key features

WhatsApp Commerce efforts are based around the following functionalities of the messaging app.

• Product catalogs. Allow businesses to showcase their products or services directly within the WhatsApp app. Such a catalog can serve as a convenient digital storefront, enabling customers to browse products and services easily, view detailed information, and initiate conversations or purchases from within WhatsApp.
• Click-to-chat links. Breaking down barriers between browsing and buying, Click-to-Chat Links enable customers to connect with a brand in a WhatsApp chat window directly from ads, websites, or social media platforms. The feature enables enterprises to integrate conversational marketing within WhatsApp messaging environment seamlessly.
• Direct & group messages. Direct one-on-one conversations as well as group chats for larger audiences enable companies to send targeted promotions, share exclusive offers, or provide bulk updates to customers who have opted-in to receive messages.
• Automated messaging & chatbots. Empower businesses to provide instant, scalable customer interaction and streamline operations. Quick replies for frequently asked questions, away messages for replies outside of business hours, and greeting messages are just some of the ways how predefined responses can decrease the amount of routine for human agents. More advanced functionality is available with interactive chatbots, which can handle routine inquiries, qualify leads, collect customer data, and route customers to relevant human agents for complex issues.
• WhatsApp Pay. In regions where it is available, WhatsApp Pay allows customers to make purchases, settle bills, or transfer funds — all within the WhatsApp ecosystem. As a result of such a cohesive shopping experience, brands are likely to see an increase in average order values and frequency.

Essential WhatsApp Commerce Strategies

To maximize the results of sales efforts through WhatsApp, companies should consider the following use cases of WhatsApp Commerce.

Showcase products with catalog

Think of the WhatsApp Catalog as a virtual storefront. It can effectively showcase up to 500 products and simplify the shopping experience, resulting in increased customer satisfaction and sales. WhatsApp Catalog features include product categories (subcategories are only available through the WhatsApp Business API), real-time inventory updates, and easy sharing capabilities. Businesses using WhatsApp Product Catalog also get a convenient way to track sales along with customer responses and benefit from a reduced sales cycle, as it all takes place within a single platform.

Provide support and order updates through WhatsApp

Leveraging WhatsApp for customer support and order tracking can enhance customer experience by enabling swift, personalized interactions on an app that customers already use and trust. Automating responses to frequently asked questions and providing timely updates on order statuses not only streamlines communication but also strengthens customer loyalty, positioning the brand as accessible, attentive, and committed to providing high-quality customer service.

For example, since implementing the WhatsApp Business API and WhatsApp Commerce practices, the aforementioned Women's Best the company manages around 30,000 customer service requests each month through the messaging app, with a significantly enhanced productivity. Notably, this shift allows customer support agents to process inquiries 50% quicker, with each agent resolving up to 40 WhatsApp tickets per hour.

Broadcast promotions and post content on WhatsApp channel

WhatsApp's broadcast feature allows businesses to send messages to multiple recipients, with a remarkable 95% open rate and 35% click-through rate, according to multiple studies. A broadcast feature for WhatsApp Business has a maximum limit of 256 recipients and requires contacts to have saved the sender's number. For larger audiences, the WhatsApp Business API is a great alternative, offering an unlimited number of recipients and pre-saved templates.

At the same time, running an in-app group is another useful WhatsApp Commerce tactic that a brand can use to share content and promote new products to some of the most loyal segments of its audience — followers of its WhatsApp channel.

Automate lead generation with chatbots

Considering the ongoing development in AI, the technologies powered by neural networks are likely to become ubiquitous in the sphere of customer support and sales soon. Today, chatbots can effectively qualify leads, answer inquiries, guide customers through the buying process, and offer personalized recommendations.

Furthermore, chatbots collect significant information about client behavior and preferences, which can be used to inform marketing tactics and product offerings. Their integration with CRM systems and other technologies provides a consistent client experience while being a cost-effective alternative for enterprises on a limited budget.

Integrate WhatsApp with company's website & social media

Last but not least, it's important to guide customers to the messaging app effectively and ensure that WhatsApp Commerce efforts yield the expected results. A company can add a click-to-chat button to its website and social media pages, seamlessly connecting customers with a brand representative or AI agent.

Additionally, consider embedding Facebook and Instagram ads with a direct link to WhatsApp, so that any viewer interested in learning more about your product and service offering can discuss any details via the messaging app without having to search for contact details on a website.

How to create a WhatsApp e-commerce store in 6 steps

The best way to leverage the concept of WhatsApp Commerce for a shop is to create a virtual shop in the messaging app. You can achieve this by following the steps below.

• Set up WhatsApp Business. Start by installing WhatsApp Business app and creating an account with your business phone number.
• Optimize the company's profile. Leverage extra profile details available to WhatsApp Business users: add logo, description, contact details and business hours.
• Create and upload product catalog. Open WhatsApp Business and navigate to "Settings" — "Business Tools" — "Catalog." Tap "Add New Item" and upload images of a product, fill in the details, such as the product name, price, description, and a link to purchase.
• Set up automated messages and quick replies. Add greeting messages to promptly welcome new customers who initiate chats. Use quick replies for frequently asked questions.
• Promote your WhatsApp store. Share your WhatsApp Business profile by adding a click-to-chat link on social media and website.
• Enable WhatsApp Pay and other payment options. If available in your region, set up payment via WhatsApp Pay, along with other secure third-party integrations with payment systems.

What violates WhatsApp Commerce policies?

When adopting WhatsApp as a channel for commerce, it is important to get familiar with the platform's policies effectively. Violating these policies can lead to account suspensions or bans, which can significantly impact business operations.

Selling restricted or illegal items

It is prohibited to offer on sale such products as drugs, weapons, counterfeit goods, and items that violate intellectual property rights. Such practices can lead not only to WhatsApp Business account suspension but to legal actions as well.

Spamming or sending unsolicited promotional messages

This includes sending bulk messages to users who have not opted in to receive communications. Spamming not only violates WhatsApp's policies, but can also damage brand's reputation and lead to customers moving to competitors.

Using a personal WhatsApp account for business transactions

Finally, for customer communication, companies should use the WhatsApp Business app instead of personal accounts for conducting transactions. Since it provides features tailored to enhance customer interaction, using it ensures the best possible experience for customers.

Misleading or fraudulent business practices

This includes sharing misleading advertisements or making unrealistic claims over WhatsApp that may misinform customers. Of course, maintaining transparency and honesty is important not only to avoid WhatsApp account suspensions, but also to build trust with your audience.

To ensure compliance when using WhatsApp for commerce, prioritize adherence to platform policies and customer privacy. Always obtain explicit customer consent before sending marketing or promotional content. Also, adhere to data privacy and security regulations, such as GDPR, where applicable. This includes secure data storage, responsible use, and readily available opt-out options for customers.

Summing things up

WhatsApp Commerce is on the rise and is likely to become even more popular in the coming years. Studies show that for Gen Z, WhatsApp has become the preferred communication channel when interacting with brands, surpassing even social media platforms like Instagram and TikTok, as well well as email. This means that companies have to recognize this shift and prioritize their presence on WhatsApp to reach and engage with customers effectively, treating it as a crucial marketing and customer service channel. Ignoring WhatsApp risks missing out on connecting with this important consumer group.

Boost your sales with WhatsApp Commerce effectively with Umnico. Communicate with your customers using several messenger’s accounts from a single, user-friendly WhatsApp CRM interface. Distribute inquiries and support tickets among your team, and keep all correspondence protected in your CRM rather than on sales representatives' phones. All new users get access to a free trial.