Think about the last time when you made an online purchase. Did it involve scrolling through an endless sea of products, isolated in a solitary quest for the perfect search?
Now, imagine if that experience was transformed into an interactive and socialized realm where your friends, family, and even strangers played a pivotal role in guiding your choices. Social Commerce is the heartbeat of this vision that could turn your online shopping experience into a joyful shopping ride.
Social Commerce is an innovative form of eCommerce where online shopping isn’t just transactional but blended with social and virtual elements. It’s more than a trend that is set to redefine how we buy, sell, and shop online.
You might feel astonished to know that the global social commerce market size is projected to attain $2.1 trillion in 2025 at a whopping CAGR of 30.8% by 2025.
So, does it mean social commerce is the future of e-commerce?
Let’s discover here
But before that, let us have a quick understanding of
What is Social Commerce?
Social commerce refers to the intersection of social media and e-commerce. It is a socialized online shopping marketplace which is with social media features. In simple terms, it involves using social media channels to facilitate and enhance the buying and selling of products and services.
Social commerce leverages the social aspects of online interactions to influence and drive consumer behavior. Also, it taps into the power of social networks. Thus, it contributes to making the shopping experience more interactive, engaging, and community-oriented
Key features of social commerce
- Shoppable Content
- Influencer Marketing
- User-Generated Content
- Social Recommendations
- Live Shopping
- Social Marketplaces
- Community Building
- Integration with E-Commerce Platforms
Current Social Commerce Market: What Data Says?
Social commerce is a buzzing and rapidly evolving trend in the eCommerce industry. It is merging two big domains where users spend their most of their time and money. With social commerce platforms, consumers not only get verified reviews to make the right buying decisions but also interact directly with brands and influencers.
Therefore, eCommerce businesses are leveraging social commerce platforms and apps to sell their products & services. They now look for ecommerce app development company to build e-commerce apps with social commerce features. As a result, the market of social commerce is skyrocketing. If you look at recent market statistics, you will find how significantly the world of social commerce is growing and impacting the current online shopping practices.
- The US retail social commerce sales are expected to surpass $100 billion milestones in 2025.
- In 2024, it is estimated that there will be around 110.4 Million US social buyers, which means it will account for nearly 50.3% of entire social media users.
- Nearly 23.1% of US social commerce buyers are between 25-34 age group.
(Source: Insider Intelligence)
Why Social Commerce Is Becoming The Future of e-Commerce?
Social Commerce is often hailed as the next frontier in the world of e-commerce. It represents a paradigm shift in the way we buy and sell goods and services online. At its core, Social Commerce integrates social media platforms with traditional e-commerce functionalities.
As a result, it offers a more dynamic and interactive online shopping experience. So, the question of whether Social Commerce is the future of e-commerce arises from its potential to reshape the ecommerce landscape by leveraging the power of social networks due to the following reasons.
1. Integration of Social Media and E-Commerce Platforms
Social Commerce seamlessly combines the social elements of platforms like Facebook, Instagram, and Pinterest with the transactional capabilities of e-commerce websites. This integration allows users to discover, discuss, and purchase products within the same digital space. Hence, it eliminates the need for external links or redirects.
2. Influencer Marketing and User-Generated Content
One of the key drivers of Social Commerce is the influence of social media influencers and user-generated content. Brands leverage influencers to showcase their products to a wider audience, and users often trust these recommendations. Consequently, it makes the purchasing process a more authentic and personalized experience.
3. Shoppable Posts and Stories
Many Social media platforms have introduced features like shoppable posts and stories. These features enable businesses to tag products directly in their content. Users can click on these tags, view product details, and make purchases without leaving the social media platform. This frictionless process streamlines the customer journey and increases conversion rates.
4. Community Building and Engagement
Social Commerce focuses on building communities around brands and products. By fostering engagement through comments, likes, and shares, businesses create a sense of belonging among their customers. This social aspect not only enhances the overall shopping experience but also cultivates brand loyalty.
5. Data-Driven Personalization
Social media platforms collect vast amounts of data on user preferences, behaviors, and demographics. E-commerce businesses can leverage this data to deliver highly personalized shopping experiences. Also to recommend products that are tailored to individual preferences. So, it increases the likelihood of successful transactions.
6. Live Shopping and Real-Time Interaction
Live streaming has become a popular feature in Social Commerce. Brands and influencers can host live sessions to showcase products, answer questions, and engage with their audience in real-time. This level of interaction adds a human touch to the online shopping process, replicating the in-store experience.
7. Emergence of Social Marketplaces
Some social media platforms are evolving into full-fledged social marketplaces. They are providing businesses with dedicated spaces to set up online shops. These marketplaces facilitate a cohesive shopping experience within the social platform, which blurs the lines between social interaction and e-commerce.
Top Examples of Social Commerce In the Current Market
Instagram has integrated shopping features. It allows businesses to set up virtual storefronts. Users can explore and purchase products directly from the platform. Instagram Shopping includes features like product tags in posts, Shoppable Stories, and a dedicated shopping tab.
Facebook Marketplace serves as a peer-to-peer platform for buying and selling products locally. It allows users to discover, buy, and sell items within their local community.
Pinterest has embraced social commerce by introducing shopping features. Users can discover and shop for products directly on Pinterest, and businesses can create shoppable pins. Pinterest’s visual discovery aspect makes it an appealing platform for product exploration.
TikTok has entered the social commerce space with the introduction of TikTok Shop. This feature enables users to discover and purchase products directly within the app. TikTok Shop is closely tied to TikTok’s short-form video content, with influencers and creators showcasing products in engaging ways.
Snapchat’s Spotlight feature is designed for user-generated content and includes a spotlight on commerce. Users can discover and engage with shoppable content. And businesses can use it for advertising and promoting products.
WhatsApp Business Catalog
WhatsApp, owned by Facebook, has introduced business catalogs that enable businesses to showcase their products and services. Users can not only browse catalogs within the app but also initiate conversations with businesses for inquiries and purchases.
Amazon Live is a live-streaming feature that allows sellers to showcase and demonstrate products in real-time. Viewers can engage with hosts, ask questions, and make purchases while watching the live stream.
So, as hinted by the rapid growth of social commerce, it is evident the future of ecommerce will take a revolutionary shape. Perhaps it would be more accurate to say that it’s a future where the ecommerce marketplace will be a place where each click and purchase resonates with stories, connections, and the beating heart of social media lovers.
For businesses, it certainly sounds exciting and lucrative as they will have better opportunity to showcase their products and drive more sales. However, since it is still in an evolutionary stage, new businesses will need expert guidance to develop social commerce apps or platforms for starting ecommerce business.