What is Social Commerce? Trends and Key Insights for 2024

By 2025, social commerce retail sales in the US are expected to approach $80 billion. With 4.89 billion users on social media today, social commerce is a no-brainer for expanding your brand’s consumer base.

However, it’s not simple to make sure your company stands out from the growing competition and increase e-commerce sales using social media. To deliver an excellent customer experience, you must have a firm grasp of the buying habits of your target audience and know how to leverage social commerce technologies.

Discover the most recent social commerce data, trends, and forecasts for 2024 right here. This will assist you in developing an effective social commerce plan that draws customers and increases revenue.

What is social commerce?

Social commerce is the use of social media platforms to promote and sell products or services. It enables businesses and customers to interact directly, creating a seamless shopping experience within the user’s preferred social network. This approach enhances customer reach, engagement, and conversion rates.

With the rise of social commerce, businesses are now turning to social commerce app development to provide more interactive and convenient shopping experiences. This trend explains the growing popularity, with estimates showing the global value of social commerce will reach approximately $2.9 trillion by 2026. Embracing social commerce app development can help brands stay ahead in this evolving digital landscape.

Why is social commerce important?

Social media usage is driving a rise in social commerce. According to research, the average social media user now spends almost 15% of their waking hours on social media, using an average of six social media applications for 2 hours and 26 minutes per day.

Social media is being used by companies to market and sell goods in addition to being a place for people to interact with friends. For instance, you may find a line of skin care items on Instagram while browsing, click “Shop now,” put them in your shopping basket, and then check out—all within the app.

Social commerce is used by individuals of all ages, according to research, so if you had previously dismissed it for your small business because you were worried that your target market was “too old” to use it, think again. More than 52% of US social purchasers are over 35, while nearly a quarter (23.1%) are between the ages of 25 and 34.

What’s the difference between social commerce and ecommerce?

Despite both being online, social commerce and e-commerce are not the same sales techniques. Shopping through a website or branded app is known as e-commerce. Typically, e-commerce systems such as Shopify are used to build these websites. Any internet-enabled device, such as a PC, tablet, or smartphone, can be used by customers to access these websites.

Using social media sites like Facebook and Instagram to promote and sell goods and services is known as social commerce, which is a subset of e-commerce. Customers may finish purchases using this kind of selling approach without ever leaving their social networking apps.

With social commerce, brands can sell products through their social media marketing strategy. There’s no requirement to have their own ecommerce site to get set up with social media platforms’ native selling tools—but online retailers that have a website with an online store can benefit from social commerce by directing leads to their website. 

The best social commerce platforms

Currently, native social commerce solutions are available on four main social media sites. As social commerce continues to gain popularity and profitability, more social media networks could open their own online stores.

1. The TikTok app

Although TikTok is a very new company, its explosive growth might give the impression that it has been a social commerce platform for a very long time. Despite Instagram’s six-year lead, the video-sharing app is expected to surpass its 48.2 million users in the US by 2025, reaching 48.8 million.

However, TikTok users aren’t only browsing the app for amusement. TikTok is where 43% of Gen Z viewers begin their online product searches, surpassing more conventional channels like Google or Amazon.

In 2021, TikTok launched in-app social shopping in collaboration with Shopify, marking their formal foray into social commerce. By adding shopping tabs to their brand’s profile, merchants with a TikTok for Business account may present a virtual storefront that users can peruse without having to leave the app.

“TikTok advertising has ‘hockey-sticked’ our growth,” says Tai Adaya, HABIT’s creator. “Really, we are unable to maintain inventory! We are now able to reach a global audience thanks to TikTok.

2. Facebook 

Most marketers (89%) choose Facebook as their preferred social commerce network to increase retail social commerce sales.

Consumers are echoing Facebook’s popularity: Facebook is preferred by one-third of social commerce shoppers, according to Statista. Additionally, 62% of US social purchasers reported that their most recent social purchase happened on Facebook, with Marketplace and Shops helping to facilitate these transactions, according to an Insider Intelligence poll.

Any Facebook Business account can create a Facebook shop, which is an entirely customisable online storefront, thus it makes sense for firms wishing to enter the social commerce space to start with a Facebook page. Brands may either develop a product catalogue from scratch or upload their existing one here.

In addition to seeing product details such as sizes, colour options, and specs, visitors to a business’s Facebook profile may use Facebook Messenger to ask the brand questions. Customers may use Facebook Checkout to make purchases without ever leaving the site, or companies can send them to an online store.

Brands can build shoppable posts and advertisements and seamlessly sync items to Facebook with the Shopify connection. This makes it easier for merchants to transfer their Shopify store’s appearance and feel into Facebook stores and streamlines the importation process.

New social commerce brands may create a test shop on Facebook Shops to add goods, handle orders, and assess customer satisfaction. 

3. Instagram

Instagram is a massive social commerce network that is also owned by Meta. According to studies, about 26% of people over 13 use Instagram worldwide. Additionally, 70% of consumers use Instagram to find what they want to buy next.

Instagram is a fantastic tool for companies to reach a wider audience and increase sales, from increasing brand recognition to improving the online purchasing experience.

Instagram Shops let users purchase goods that are featured in photos and videos on the app. Like Facebook, Instagram Business accounts may use a customisable virtual shop to display their items. Brands may make carefully chosen product groupings here. 

Brands may utilise Instagram Shops to market their goods in a number of ways. These are a few of the platform’s best attributes:

Brands may use shopping tags to tag their items in Instagram Stories and feed posts.

Instagram users may explore, save, and buy things tagged by influencers or companies under the Shop tab.

Ads: Shop tab placements may also be used by businesses to build Instagram ads. Users will be able to tap through to the shop or full product description when the advertisement appears with a Sponsored label.

Shop via DMs: Instagram direct messages allow customers to make purchases from companies. Customers are able to track their orders, make purchases, and ask queries. 

4. Pinterest

Pinterest is a social media site and search engine for photos. Users pin trip destinations, make mood boards, and—above all—find new things. Every month, over 465 million users use the platform to investigate items and find ideas.

The finest aspect? Thirty-one percent of Americans with household incomes over $100,000 use Pinterest, and the great majority of searches on the platform (97%) are unbranded. Businesses may reach potential clients who are unaware of their items but have the extra cash to spend on them by posting product listings from their online store to Pinterest.

One excellent illustration of social commerce on Pinterest is the sneaker brand Allbirds. Through the platform, the company reaches customers with shoppable product pins. Allbirds has the highest chance of reaching customers who are looking for new items on Pinterest’s Shop page since these listings are optimised for both the brand name and the product category.

Reasons to try social commerce 

By 2025, the value of social commerce in the US is expected to reach $79.64 billion. A large portion of the market is available to retail firms who are interested in using social commerce solutions.

Using social commerce offers retail firms several advantages beyond the possible increase in e-commerce sales.

The top five advantages of social trade are as follows:

• Expand your target audience
• Make the buying experience seamless.
• Compile information on your audience.
• Take use of social proof
• Get feedback from customers 

1. Expand your target market

5.17 billion individuals will be active on social media by 2024. By 2027, this number is expected to rise to 5.85 billion.

Using a social commerce approach to reach a worldwide audience is now more possible than ever. Additionally, more and more social media users are beginning to shop on social media platforms. Your target audience is already browsing and prepared to buy if they are between the ages of 18 and 34. 

2. Establish a seamless shopping environment

Social media purchasing is made easier by features like in-app checkout, buy buttons, and instant chat capabilities.

Social commerce facilitates the removal of needless obstacles in the purchase process. Customers are more likely to lose interest and stop making purchases when there are more stages in the purchasing process; however, this risk is reduced when users are allowed to remain in the app from discovery to checkout.

For instance, their social commerce platform offers a “Checkout on Facebook” option rather than sending a Facebook user from the app to your website. This implies that consumers may peruse goods and make purchases without ever leaving social media.

3. Compile information about your target audience.

One of the best sources of consumer information is social media sites. Future product development and marketing initiatives can benefit from this useful data.

Demographic information such as gender, age range, and location is available through Instagram Insights. Marketers may obtain even more detailed information about their target population by using Facebook population Insights. Age and gender splits, work titles, relationship statuses, and educational attainment are all included in its demographics summary. Additionally, brands may learn about the interests and pastimes of individuals.

Retailers may use this information to create highly targeted advertising campaigns that will show their items to the people who are most likely to buy them. Therefore, in ways that traditional e-commerce sites cannot match, social commerce offers marketers the opportunity to link items with specialised and highly targeted consumers.

4. Take use of social proof

Nine out of ten internet customers read reviews before making a purchase, according to Oberlo. Before making a purchase, people need to trust brands, therefore they will research items, read reviews from previous customers, and even speak with other consumers.

User-generated material serves as integrated social evidence in social commerce. Followers, shares, likes, and comments all contribute to the confidence that potential customers have in your brand. Other social media users are more inclined to trust your brand when customers continue to engage with it and spread the word about it. 

Brands might utilise discounts, discount codes, or freebies to encourage people to share their content. Another strategy for creating social proof is to utilise branded hashtags that entice people to post pictures or videos of themselves using the items.

To gain the confidence of their Instagram audience, Curology, a direct-to-consumer skin care firm, frequently posts pictures of its clients using their products.

Influencer marketing also contributes to social proof and trust-building. Having well-known influencers promote your goods boosts the legitimacy of your business. For example, creators’ suggestions are trusted by 87% of YouTube users. In order to encourage viewers to like, subscribe, and purchase, marketers may use YouTube Shopping to pin goods next to their videos.

5. Get input from clients

Social media makes it simple to communicate with clients directly and find out what they think of your products and business. Because it makes them feel appreciated and, consequently, their perspective, customers want to express their ideas. Brands may conduct surveys, solicit feedback from consumers in the comments section, and communicate via messenger apps on social commerce platforms.

Retailers may adjust their products to match consumer expectations by using this input. Retailers may take action after gaining these information, whether it’s a new apparel collection, additional product size options, or improved customer service. 

Social commerce industry statistics 

The future of social commerce is bright, and the business is flourishing. The following figures provide more insight into the current status of social commerce:

Social media accounts for 14% of all internet transactions. Because of this, social commerce is more common than purchasing straight from a DTC store, delivery app, or big-box retailer.

The majority of the world’s online customers are found near China’s borders, and their purchases account for more than half of all retail sales. 84% of Chinese customers have purchased on social media, which is among the highest percentages in the world, according to Statista.

Ninety-one percent of respondents said they would like to see more brand videos. Video content is currently prioritised on the majority of social media sites. 

Currently, 20% of consumers have participated in live shopping events. Live Streamed shopping events have gained popularity in China, but live shopping is still in its infancy in the US. In just three years, the livestream selling industry in China increased from $3 billion to $171 billion. According to current projections, the US livestream industry is expected to reach a valuation of $35 billion by 2024.

The industry of influencer marketing is worth $21.1 billion. The epidemic has simply spurred more development in influencer marketing, despite concerns that it would slow it down. The kind of social media user that meets a brand’s “ideal influencer” requirements is evolving, even if 67% of firms want to raise their influencer marketing spending in the upcoming year: The most crucial component of the strategy is no longer followers.

Social commerce trends for 2024

Here’s a broad overview of the direction social commerce is taking this year; we’ll go into more detail about each of them later.

• AR experiences increase user engagement.
• More videos that show off items in use.
• Micro-influencers will assist firms in expanding their reach in a genuine way.
• The popularity of live streaming will rise.
• Consumers will become more trusting of user-generated material.
• AI-trained chatbots that facilitate payments will be used by more companies.
• Customer loyalty will increase with frictionless social purchasing experiences.
• improved social commerce and e-commerce platform connections.

People engage more with AR experiences

Virtual reality (VR) and augmented reality (AR) are becoming popular. Nearly 73.7 million Americans are expected to utilise VR in 2024, while 104.3 million will use AR. 19.8% of these individuals will use social networks to obtain this kind of technology by 2025.

One of the main forces behind AR use is social media. Using a filter or lens on TikTok, Instagram, or Snapchat is frequently how people first encounter augmented reality. By utilising AR filters to showcase their items or let shoppers virtually try them on, retailers may capitalise on this trend.

Social media augmented reality (AR) may be used by brands to assist consumers in deciding which items to buy. Customers may utilise the technology to feel things at home rather than having to visit real stores to try them on.

To provide online buyers the same experience as in-store ones, Magnolia Market, a home and lifestyle business, leverages Shopify AR. “We want the finer points of the in-store experience to be accessible to those who shop online and on the go, even though not everyone can visit us in person. Augmented reality makes that possible,” says cofounder Stone Crandall.

“With the use of this technology, customers can have a close-up look at our items and analyse the details that make them distinctive and remarkable. We always want our visitors to leave feeling motivated by their experience, and the new Magnolia app will allow them to do so from the comfort of their own hands, regardless of where they are.

Conclusion

Social commerce is revolutionising online shopping, providing businesses with unique opportunities to engage directly with customers on social media platforms. With emerging trends in 2024, it’s crucial for brands to embrace social commerce to stay competitive and boost sales.

For expert mobile app development services, Appic Softwares is here to help you integrate social commerce seamlessly into your business strategy. Get in touch with us today to transform your brand’s online presence and drive sales!