What is social commerce?
Put as plainly as possible, social commerce is buying and selling stuff directly on social media. Instead of going to an online or physical store, shoppers can visit a business page within the social media platform, or simply click on a post and complete their transaction right on the spot, sometimes through messaging or even via chatbot.Â
Why does it matter?Â
It’s a huge market that’s only getting bigger. Take a look at these numbers:Â
- 4.89 billion people currently use social media, a figure that’s expected to grow to 5.17 billion by the end of 2024 and 5.87 billion by 2027.
- Online users spend an average of about 2.5 hours a day on social media, which is about 15% of their waking life.Â
- Social commerce retail earnings are predicted to reach almost US$80 billion by 2025, with the industry attaining a global value of US$2.9 trillion as early as 2026.Â
- 14% of all online purchases are conducted through social media, outstripping direct-to-consumer sites, delivery apps, and even big-box retail.Â
So, who’s driving this social commerce wave?
Literally, they’re everywhere online, but here’s a closer look:Â
- 52% of social commerce buyers are over 35 years old, while 23% are between 25 and 34.Â
- 89% of marketers handle retail social commerce sales via Facebook, with 49% of Facebook users likely to purchase directly on the platform.Â
- 70% of shoppers use Instagram to look up their next purchase, with about 26% of the global population above 13 comprising Instagram users.Â
- 43% of Gen Z members use TikTok to begin their online product searches, with an estimate of nearly 40 million TikTok buyers in the United States alone.Â
Why has social commerce become so popular?
Well, first off, there’s the undeniable convenience of seeing something you like and being able to purchase it on the spot. Switching from a social media interface to an online shop might only take a few seconds, but that brief transition can be the difference between making a sale and losing interest – perhaps to an entertaining video. With social commerce, there’s no need to pause; you can indulge in your video and make your purchase simultaneously. 
Then, there’s the power of influencers. The modern consumer values genuine reviews and personal experiences far more than traditional advertising. Consider these facts:Â
- 9 out of 10 online shoppers check reviews before deciding on a product or service.Â
- 80% of consumers trust user-generated content over brand communications, with 81% specifically identifying influencer recommendations as their go-to.Â
- 89% of buyers have made purchases based on videos they watched, with 87% of YouTube viewers expressing their trust in platform influencers.Â
- Influencer marketing is now a USS$21.1b industry, with 67% of brands intending to increase their influencer marketing budgets.Â
Given these compelling insights, there’s no better time than now to explore how social commerce can elevate your business or brand. Whether directly integrating social commerce or enhancing your strategy with influential collaborations, the vibrant landscape of social commerce offers endless opportunities. Engaging with a customer experience (CX) expert could be your first step towards capturing this dynamic market.Â
