What is Social Commerce: 10 Trends for Your Business

With the rising popularity of social media, these platforms have evolved beyond tools for communication and entertainment. They have become powerful channels to reach, engage, and convert customers through social commerce.

This article will discuss the key aspects of social commerce, how it works, and the key advantages this practice can bring to your business. We will also explore the platforms you should consider using, as well as trends that will bring your social commerce efforts to new heights.

Social commerce definition and how it works

Social commerce refers to selling goods and services on social media platforms. While traditional online commerce requires shoppers to visit a retailer’s website, social commerce allows them to explore and purchase products within social media platforms, such as Instagram Shopping or TikTok Shop.

Let’s break down the entire social shopping process.

1. Discovery

Shoppers scroll through their favorite social platforms, encountering content from various sources. Brands, as well as influencers, post shoppable content, such as images, videos, or stories. These posts include tagged products users can click on to explore further.

For example, a beauty influencer posts a makeup look, tagging each item they used.

2. Product exploration

Users are shown product descriptions, prices, and other relevant information when they tap or click on a tagged product. Many social platforms provide a sample product page within the app that includes product specifications, user reviews, and additional images.

3. Purchase

Platforms such as Facebook allow users to complete their purchases within the app. After picking their products, users can provide payment and shipping information to finalize the purchase without being redirected to an external website. This is becoming increasingly popular among social platforms, as it streamlines the shopping process and ensures engagement within the app.

4. Retargeting and follow-up

If users engage with a product but don’t purchase it immediately, platforms often use retargeting ads to remind them of their previous interest. Such ads typically appear in their feeds or stories to encourage them to come back and complete the purchase.

Moreover, brands often follow up with their customers via direct messages to provide post-purchase customer service, answer questions, or simply check in. This strengthens the relationship and encourages future purchases.

Why should you care about the social commerce industry?

In the following section, we will discuss the key reasons why you should consider leveraging social commerce.

Expanded reach and visibility

With social media platforms boasting billions of active users, social commerce enables you to reach huge audiences. You can engage with social media users even though they might not be actively looking to purchase products.

Additionally, social media’s potential for virality contributes to brand and product discovery. Users can share and recommend your products or services, increasing visibility and driving engagement.

For example, The Ordinary gained a large following through viral posts on Instagram and TikTok.

Higher conversion rates

Customers love interacting with dynamic content like images, videos, and live streams, making social media the perfect avenue for improving engagement and driving conversions.

Additionally, social media provides a wealth of user data, allowing you to create highly personalized customer experiences. You can suggest relevant products based on customer preferences and past in-app behavior, creating opportunities for product discovery and subsequent purchases.

Brand trust and credibility

User-generated content, such as reviews, product mentions, and posts acts as powerful social proof, helping to build trust with new customers and strengthening relationships with your existing audience.

Cost-effective marketing

Social media allows you to reach specific audiences based on detailed behavioral and demographic data. Ad campaigns based on these insights enable you to show highly targeted advertisements to users who are most likely to be interested in your product or service. This is a more budget-friendly option compared to broader marketing efforts.

Moreover, posting shoppable content allows for organic growth through user engagement and shares. By doing this, you don’t need to heavily invest in paid advertising campaigns.

Improved customer relationships

Social media are great channels for fostering personalized communication between your business and customers. Interacting with your customer base helps build strong relationships and increase satisfaction. When they feel heard and understood, customers are more likely to be loyal to your business, and possibly become brand ambassadors.

Access to data and insights

Analytics and customer insights are among the most important aspects of selling products on social media. Studying data, such as user engagement, preferences, and behaviors allows for data-driven decisions.

You can also track key performance indicators (KPIs), including click-through rates, conversion rates, and customer lifetime value helps you identify which parts of your strategies work and where you can make improvements.

Social commerce statistics that prove its usefulness

Social commerce is a powerful tool in the world of online retail, and we have the numbers to prove it. Below you can find five convincing statistics that show just how important this type of online selling is.

People are drawn to their screens

Selling on social media wouldn’t be possible without modern audiences’ love for their screen time. From seeking entertainment to catching up with friends and family, people interact with the online space, especially social media, daily.

In fact, almost 33% of Americans’ screen time is spent on social media, which comes up to around 2 hours a day. Similarly, British users consume almost 1 hour and 50 minutes on social media every day.

Social commerce is on the rise

Nothing highlights the increasing popularity of social commerce more than its rise in global revenue. In 2024, global revenues generated via social media platforms were projected to reach nearly 700 billion U.S. dollars, marking an increase of approximately 23% compared to the previous year.

Millennials and Gen Z love shopping on social media

As of the second quarter of 2023, seven out of ten online shoppers worldwide aged 27 to 42 had already made purchases directly through social networks. This makes millennials the generational group with the highest adoption of social shopping. Gen Z e-commerce users followed, with over half reporting making purchases on social media platforms.

Most popular social media platforms for shopping

So, which channel should you pick for your social commerce endeavor? A survey revealed that Facebook was the most popular platform for live shopping, with nearly 58% of global internet users participating. Instagram ranked second, used by 46% of survey respondents, followed by TikTok at almost 16%.

Future projections

In 2021, social commerce channels accounted for $37 billion in purchases of goods and services. By 2025, this number is projected to nearly double to $80 billion, making up 5% of total U.S. e-commerce. Globally, the social commerce market is forecasted to surpass $2 trillion by 2025.

What are some good social commerce examples?

When developing your own social commerce strategy, it’s good to learn from the best. Let’s discuss some of the brands that successfully leverage the power of social commerce.

Nike

Platform: Instagram and Facebook

Nike uses Meta’s platforms Instagram and Facebook to deliver visual content that tells stories and helps sell products. They also tap into user-generated content, encouraging customers to share pictures and videos featuring Nike products. This helps to build an organic community around the brand.

Gymshark

Platform: TikTok and Instagram

Gymshark is known for their social media presence and for using influencer marketing and viral challenges on TikTok to build their brand. Gymshark engages their target audience and makes it easy for them to purchase directly from social media platforms.

Red Bull

Platform: Instagram and TikTok

Red Bull has become more than just an energy drink. This lifestyle brand leverages social media to sell branded merchandise and various accessories. Besides selling directly on social platforms, they are also known for promoting extreme sports and sponsoring sporting events.

H&M

Platform: Instagram and Pinterest

H&M uses Instagram and Pinterest to streamline their customers’ shopping experience, enabling them to make purchases directly from the social media apps. They also heavily use influencer marketing to drive engagement and boost visibility.

GoPro

Platform: Instagram and YouTube

GoPro’s strategy heavily relies on user-generated content, especially on Instagram. Using stunning imagery and hashtags like #GoPro helps them boost brand awareness and drive sales. Shoppable content allows followers to buy cameras and accessories directly from GoPro’s social media.

Famous social commerce platforms on the market

There are multiple social platforms you can use to sell your products. The following sections will give you an overview of the most popular ones.

What does building an effective social commerce strategy require?

To build a thriving social commerce strategy, you need to go through several steps.

1. Pick the right social commerce platform: Based on your target audience, choose the right social media platforms. Base your decision on data, such as demographics, user engagement metrics, or platform popularity.
2. Create content: Create engaging and visually appealing content, such as videos or images. Ensure your content showcases your products and resonates with your audience.
3. Partner with influencers: Influencer collaborations boost visibility and build customer trust. Partner with influencers or brand ambassadors who can authentically promote your brand.
4. Build a seamless shopping experience: Ensure your links, product pages, and checkout work within your chosen platform effortlessly.
5. Foster community engagement: Interact with your followers through comments or direct messages. Making them feel heard and valued helps deepen customer relationships.
6. Analyze and optimize: Tracking performance metrics, such as engagement rates, conversions, and cart abandonment is essential. Also, don’t forget to solicit customer feedback to identify areas for improvement.

How to effectively compete with brands in the social commerce market

Selling on social media comes with fierce competition. Here are some tips on how you can differentiate your brand from others and maintain a competitive edge.

Find your niche

Specializing in a niche market helps your brand stand out from larger businesses. Focus your efforts on a specific category of products, lifestyle, or interest group. However, keep in mind that authenticity goes a long way on social media. Building a loyal following in niche markets requires unique products that stand out from the mainstream.

Leverage user-generated content

Encourage customers to share content that features your products. User-generated content is a powerful social proof that also helps create more interactive experiences. You can run contests or offer incentives for sharing content. This not only boosts participation but also creates buzz around your brand.

Be creative

In social commerce, creativity is everything. A creative approach allows you to stand out and capture users’ attention. Experiment with different content formats, such as live-streaming or interactive stories, to find out which ones resonate with your audience the most. Focus on storytelling and bold visuals to create authentic, memorable, and shareable content your followers will love to interact with.

Focus on high-quality visual content

Social media heavily relies on visual content. That’s why using high-quality images and videos is essential. Invest in professional photography and lifestyle shoots to make your products look appealing. This is especially important on Instagram and TikTok, where aesthetics play a large role in purchasing decisions.

Offer exclusive and time-limited deals

No matter the platform, everyone loves a deal. Offering limited-time offers, flash sales, or platform-exclusive discounts creates a sense of urgency that helps convert casual browsers into buyers. You can promote these deals through targeted ads or influencers to ensure maximum visibility and engagement.

Keep an eye on the competition

Use tools to track competitors’ engagement rates and campaigns. This way, you can stay informed about what they are doing well and areas they might be overlooking. This allows you to identify gaps in the market and come up with innovative ideas on how to address them.

10 trends to help you build your social commerce strategy

Building a successful social commerce strategy requires that you stay on top of industry trends. Here are the 10 most important ones.

Conclusion

Social commerce has transformed the way companies interact with their customers. Offering seamless shopping experiences directly within social media platforms allows you to reach wider audiences, boost conversion rates, and build long-lasting customer relationships.

Creating interactive content, partnering with influencers, leveraging user-generated content, and advertising your sustainable practices allows you to create a sense of community on social media, leading to improved brand awareness and a loyal customer base. Additionally, staying up to date on emerging trends, such as live shopping or providing instant checkout allows you to enhance the shopping journey ensuring that customers will keep coming back for more.

Frequently asked questions