The Impact of User-Generated Content on Ecommerce Growth

Shoppers love authenticity, particularly when buying online. That’s why user-generated content (UGC) is so powerful. Reviews, ratings, and testimonials from real customers help shoppers discover new products and validate their purchasing decisions. Globally, over 60% of consumers seek out UGC to help them determine if buying a given product is worth the money. 

For retailers, the demand from consumers for peer-driven content represents a huge opportunity, though effectively harnessing the voice of your customers (while maintaining brand consistency) can be tricky. You need a strategy for getting the most from UGC which includes motivating shoppers to contribute content, maximizing its impact and measuring its success. 

But before we cover strategies and best practices, let’s define what user-generated content is and why it’s such a powerful force in online retail.

What is User-Generated Content?

User-generated content (UGC) is any form of content created by users or customers versus brands or companies. Consumers trust UGC more than traditional brand content because it’s authentic. That means it’s not always positive (but this is what adds to the charm). 

Shoppers want to know that the item they see on the screen is what they’ll get delivered to their home. They look to UGC to confirm things like quality, accuracy of color and fit, and ease of use. 

Common types of UGC include:

• Customer reviews and ratings
• Q&A responses
• Social media posts and comments
• Customer photos of products in the wild
• Unboxing and product demonstration videos
• Customer testimonials

User-Generated Content Examples

UGC shows up in many ways, but it’s always created by consumers versus businesses. Typically it’s created for free, though companies can incentivize their customers with contests and other perks to create content like reviews (we’ll get to the specifics of this in a bit). Here are some examples of how UGC might manifest in an ecommerce buying journey:

• Jill reviews the new loveseat she purchased, sharing photos that show how it fits in her living room. Her review pops up when Claude is looking at the product page for this exact loveseat.
• Sheldon posts on TikTok about his new drum kit, creating an unboxing video that showcases the quality. Maya comes across Sheldon’s video in her “For You” feed because she’s watched several instructional videos about drumming.
• Zac creates a detailed video tutorial about his latest DSLR camera, helping other shoppers understand its features. Jackie finds Zac’s video when she’s searching on YouTube for tips on what to look for when buying a DSLR camera.

The authentic content create by Jill, Shedon, and Jack builds trust with potential customers. It provides social proof—which is when shoppers see others successfully using and enjoying a product—and answers common questions. 

When shoppers see real people using and discussing a product, they feel better and more confident about buying it. UGC can also help retailers identify product issues, gather valuable feedback from customers about customers’ experiences with their company and demonstrate specific ways that customers use (or style) a given item. 

Benefits of User-Generated Content

Online shoppers need reassurance. They want to know that the products they’re considering will meet their expectations. User-generated content works to reassure shoppers and build trust. It also gets shoppers excited and engaged. Reviews, customer photos, star ratings and other customer-created content has multiple benefits for retailers including:

🤝1. Building Trust and Authenticity

Consider that Over 90% of consumers trust recommendations from people they know more than “any form of advertising.” So, if you think of UGC as a virtual form of “word of mouth” marketing, it makes sense that consumers trust this type of information more than brand messaging and ads. The unfiltered honesty of UGC creates a balanced view that helps shoppers make informed decisions. When potential customers see real people using products in their daily lives, it creates an authentic connection that branded content simply can’t match.

💬2. Influencing Purchasing Decisions

Content like user reviews, ratings and testimonials directly influences customers’ purchasing decisions—and this is true for almost everyone who shops online. About 91% of respondents in one recent survey said they “always read” reviews before buying something. Shoppers actively seek out peer experiences before making purchases, using this content to validate their choices and understand how products work in real-world situations.

🔁3. Increases Engagement Across the Buying Journey

UGC creates a ripple effect across the customer journey that directly impacts engagement and purchase. Brands that incorporate UGC into their marketing see a 28% boost in engagement rates. Paid ads that display UGC have higher click-through rates (while costing less than standard ads.) This boost in performance happens because UGC helps shoppers visualize products in use, answers their questions, and reduces purchase anxiety.

💲4. Cost-Effective Marketing

UGC gives retailers a constant stream of fresh, authentic content without the high cost of professional photography or video production. It’s also timely and relevant, particularly when attached to seasonal events and campaigns. When a mom shares a photo of her child wearing a trendy Halloween costume or an avid gamer posts an unboxing video of a new gaming console, it also inspires FOMO (fear of missing out). People want the cool thing they see others enjoying. 

Strategies to Leverage UGC for Ecommerce Success

Now that we’ve clarified the value of user-generated content, we’ll list some practical ways to collect and use it. The most effective UGC strategies combine multiple approaches to encourage and showcase customer content. Here’s what we suggest:

⭐1. Encourage Reviews and Ratings

Make it easy for customers to leave reviews by sending post-purchase emails with direct links to your review form. Consider offering small incentives like discount codes on future purchases, but keep the process simple. The easier it is to leave a review, the more likely customers will do it.

#️⃣2. Create Hashtag Campaigns

Launch branded hashtag campaigns that inspire customers to share their experiences on platforms like TikTok and Instagram. Choose a memorable, unique hashtag that connects to your brand and products. When customers use your hashtag, it creates a searchable collection of authentic content you can reshare.

🎁3. Host Contests and Giveaways

Create contests where customers can leave a review or share a video for entry. Contests can boost UGC engagement significantly compared to standard requests for feedback or reviews. Themed contests are particularly fun and encourage customers to share photos or videos of your products.

🧑‍💻4. Showcase UGC on Your Site

Display customer photos, reviews, and videos directly on your product, category, and cart pages. This social proof helps shoppers envision how products work in real life while building confidence in their purchase decisions.

📩5. Incorporate UGC in Email Marketing

Add customer reviews and photos to your email campaigns to increase authenticity and engagement. Feature real customer stories and testimonials to make your emails more relatable and trustworthy.

Best Practices for Maximizing UGC Impact

To make UGC work harder for your brand, you need a strategy for collecting, managing, and using it effectively. Here are a few best practices that will help you get the most from your UGC efforts:

• Provide Clear Guidelines: Don’t leave people guessing when it comes to providing content. Per The Bazaar Voice, 53% of consumers want specific instructions on content creation. Tell them exactly what you’re looking for—whether that’s photos showing your product in use, video demonstrations, or detailed reviews. Be specific about preferred formats, lengths, and any technical requirements.
• Moderate Content: Not all UGC will be a good fit for your website or your shoppers.  Review submissions to ensure they align with your brand values and quality standards. Look for content that’s authentic but also professional enough to represent your brand. Remove anything inappropriate or off-brand, but be careful not to over-edit—maintaining authenticity is key.
• Incentivize Participation: Make it worth your customers’ time to create content. This doesn’t always mean monetary rewards. Recognition, featured placement on your site, exclusive access to new products or contests can motivate participation. 
• Ensure Legal Compliance: Always get permission before using customer content. Create clear terms and conditions for UGC submissions and make sure customers understand how their content might be used. Keep records of permissions and respect customers’ rights to their content. This protects both your brand and your customers.

Measuring User-Generated Content Success

Measuring the impact of UGC helps refine and improve your strategy by showing what content resonates with shoppers and drives results. Also consider that UGC campaigns can go viral, but it can be a guessing game trying to find the right formula to make this happen. Tracking performance removes some of the guesswork.

Here are key metrics to track:

• Total Reach: Track total views and impressions of UGC across all channels. This includes impressions on social media, page views of UGC galleries, and views of reviews on product pages. Higher reach means you may have a winning campaign (and more people seeing authentic content about your products.)
• Engagement Rates: Calculate this by dividing total engagements (likes, comments, shares) by total impressions or views, then multiply by 100 to get a percentage. 
• Conversion Rates: Monitor how UGC influences purchase decisions by measuring conversion rates on pages with UGC versus those without. Look at metrics like add-to-cart rates and completed purchases.
• ROI (Return on Investment): Compare the cost of your UGC program (including incentives and management tools) against revenue generated from UGC-influenced sales. 
• Social Proof Metrics: Track review volume, average ratings, and customer sentiment to understand how UGC impacts brand perception and trust.