The Economic Effects of Social Media in Online Sales

Abstract

Over the last few years, the new technologies have "invaded" both the social and the economic perimeter, changing the way people communicate with each other remotely, through the creation of a digital society. In addition to its maturation over time, social media offers real opportunities for growth in the market, remaining to date the largest area with the potential for economic growth. This paper aims to analyze the economic effects of the media in the formation of a digital society, which generates sales and profit. The methodology used to analyze social media in the context of the economic relations system is the date of logical and comparative analysis used through the literature. This paper highlights the economic effects of using new media in terms of online sales both before the pandemic generated by Covid-19 and during the coronavirus period. The use of social networks has the role of intensifying the competition between companies from a microeconomic point of view. On the other hand, at the macroeconomic level, the use of social networks helps to develop the internal market, but at the same time, the costs for maintaining and controlling economic institutions will also increase.