In this modern world, where consumers and brands are actively engaged on social media, the concept of social commerce is gaining more acceptance. The concept of social commerce is not something extra; rather, it is the central pillar driving how people discover, search, trust, and purchase a product. Social commerce is transforming the retail landscape through its compelling statistics, changing buyer behavior, and innovative strategies. Let’s explore what social commerce is, why it is essential, and how you and other businesses could grow through this revolution.
What is Social Commerce?
Social commerce is a new approach that refers to the sales of products and services directly through social media. The leading platforms used for social commerce include Facebook, Instagram, and TikTok. Facebook Marketplace, TikTok Shops, and Instagram Shops are now widely used for discovery, engagement, and the purchase of goods. It is not just advertising the product; instead, it reflects a seamless blend of content, commerce, and community to provide an exceptional shopping experience.
Why social commerce is growing?
Huge market size and explosive growth
Social commerce is a lucrative adoption that has significantly improved revenue. In 2024, a remarkable increase in social commerce revenue was observed, with social commerce revenue reaching approximately $700 billion, representing a 23% rise from $571 billion in 2023. (https://keywordseverywhere.com/blog/social-commerce-stats/#:~:text=10.,record%20value%20of%20$24%20billion. )
The market size of social commerce is also growing very fast. It is estimated to reach $1.63 trillion USD in 2025, growing at a CAGR of 30.71% (https://www.mordorintelligence.com/industry-reports/social-commerce-market ). The sale from social commerce in the USA is expected to reach $85.58 billion by 2025. https://www.amraandelma.com/social-commerce-statistics/
Consumer behavior and platform adoption
The ratio of people using social media has been escalating with time. Nearly 82% of consumers are found to use social media for product search and discovery. Gen Z is among the most prominent groups of social media users when it comes to product purchasing. People in the 16- to 24-year age bracket are the leading group of individuals who buy products through social platforms. Almost 70% of worldwide shoppers within this age group actively use social commerce. By 2025, social commerce is expected to account for a 17% share of online retail sales. https://www.shopify.com/enterprise/blog/social-commerce-trends
Authenticity and social proof
User-generated content, in the form of videos, photos, and reviews, serves as social proof, enhancing the authenticity of the brand. Such user-generated content is found to drive nearly $ 8 billion in annual social commerce revenue. Brands that leverage user-generated content experience a 63% increase in revenue in specific segments.
Consumers seek recommendations through this user-generated content. They are more likely to trust peer reviews and authentic user-generated content. This trust ultimately leads to higher conversion rates and stronger engagement.
The role of videos, messages, and live streaming
Live streaming shopping and video commerce are emerging as the dominant models of business at social media. Such models are most prevalent in the Asia Pacific; however, their worldwide adoption is also increasing.
Social commerce, based on instant messaging platforms such as WhatsApp and WeChat, has also been gaining popularity. Instant messaging-based social commerce is effective in building trusted relationships and fostering engagement through group chats and personal recommendations.
Benefits and challenges of social commerce
| Benefits | Challenges |
| Social commerce reduces the purchase path, which eventually reduces friction (discovery to purchase within a single platform. | Social commerce confronts significant trust issues, as people are concerned about authenticity, quality, and delivery, particularly when purchasing from a new brand. |
| The rate of conversion is high in social commerce if the content is authentic and engaging. User-generated content and influencer reinforcements make the content engaging and genuine. | Social commerce highly depends on platforms, so simple changes in algorithms, fees, or policies could significantly impact the business. |
| Social Commerce provides improved access to consumer data, enabling better targeting. | Consumer services and logistics are relatively complex in social commerce. |
| Social Commerce provides an opportunity to tap into impulse purchases, allowing the brand to convert casual browsing into actual sales. | Social commerce is becoming increasingly crowded, and the competition is intensifying as multiple brands are now entering the social commerce space. |
Strategies to make social commerce successful
Some of the actionable strategies that could make social commerce work for your brand and your clients are as follows:
Selecting the right platform
Consider using the social media platform where your target audience spends the most time. For instance, Facebook and Instagram are among the most mature social media platforms for visual content, including beauty and fashion. Similarly, for a trend-driven and young audience, TikTok is a dominant platform. Messaging apps, such as WhatsApp, excel where conversation and trust are crucial.
Leveraging influencers and user-generated content
The brand should encourage its customers to post video reviews and genuine photos, as these serve as authentic content that consumers use for recommendations.
Another effective strategy is collaborating with influencers. Collaborating with micro-influencers is an effective strategy, as they have smaller but highly engaged communities. Collaborating with influencers is valuable since they are more credible, affordable, and capable of keeping the audience engaged.
Creating shoppable content
It is recommended to use shoppable stories and posts. Adding product tags and live stream shopping features is also effective. An effective strategy is to make the experience easy for consumers by minimizing the number of clicks and providing a direct checkout process.
Creating a seamless customer experience
Providing a trustworthy and streamlined consumer experience helps drive more sales through social commerce. Clear product descriptions, transparent pricing, valuable support, and an easy return policy will make social commerce successful for the brand.
Localization and personalization
For a multinational brand that operates across different countries and regions, driving traffic requires language adaptation and cultural sensitivity. Moreover, collaborating with local influencers will make personalized content more effective.
AI integration
Integrating artificial intelligence and utilizing augmented reality-based try-ons will enhance the shopping experience for customers. Integration of AI in social commerce will also offer precise personalization through more intelligent recommendation engines.
Regulations and data privacy
The social media platform will collect consumer data; therefore, it is imperative to ensure compliance with data privacy policies to maintain consumer privacy.
Final thoughts
Social commerce is not merely a trend, but a revolution that transforms the way people discover and purchase products. Social commerce provides immense opportunities for businesses, enabling them to tap into platforms that people use most frequently. It reduces friction in sales and boosts conversions through user-generated content, thereby driving the brand’s growth.
The brand’s failure to invest in social commerce risks its ability to grow in the modern world. The ability of the brand to leverage social commerce by selecting the correct platform, developing engaging content, and providing recommendations through authentic user-generated content not only help it thrive but also lead in this competitive wave.