As more and more companies are turning to social media for a presence online, Facebook, Twitter, and Youtube are giving way to the next big trend for these established companies; the social sign-in. This new form of sharing information allows customers to login to a website using their social media login credentials rather than registering for that specific website separately. Because Facebook’s registration and platform provide so much user insight, retailers are excited to embrace the social sign-in as it will give them access to this detailed information that they wouldn’t normally be able to retrieve from a simple website log-in. Preferences and likes are very important to retailers because their strategy is simply increase orders, attract new customers, and minimize returns. Thanks to the social sign-in, they can begin using this data to learn more about their customers and to ensure they’re providing users with the best possible experience.

From a customer’s perspective, not having to memorize 26 different login passwords and usernames can mean a lot less time and frustration. But on the other end of the spectrum, people are becoming increasingly more protective and weary about their information online, and for good reason. For the time being, retailers are treading lightly with social sign-ins so customers don’t feel like their privacy is being violated.

Although the concept isn’t brand new, only a few ecommerce websites have implemented the social sign-in so far. A report from eMarketer states that 18% of online retailers have implemented this technology for their visitors as of August 2010. Another 18% reported that they were in the process of implementing it while 32% planned to roll it out sometime in the next 12-24 months.

With the world of social media ever-changing, it will be interesting to see if this new trend catches on with retailers and how the platform may change and evolve over time. Most importantly, will customers be willing to sacrifice their privacy for a convenience like the social sign-in and if so, will it be worth it in the end?

Infographic provided by Gigya