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Social Commerce is Now Taking Over E-Commerce!

Written By: Gargi Sarma 

Social commerce is one trend in the ever-changing world of e-commerce that is gradually gaining traction and changing the way we shop online. Integrating peer recommendations, e-commerce, and product discovery within social platforms, social commerce has become a game-changer by using the power of social media. Direct product discovery, review, and purchase capabilities are now available on social media sites including Facebook, Instagram, Pinterest, and TikTok. Higher conversion rates are the result of this smooth integration, which expedites the purchasing process. As it develops further, its influence is spreading to different nations, affecting shops, and reaching a large target market. Social commerce is becoming a full-fledged shopping experience rather than just a marketing tool. 

Figure 1: Social Commerce Sales (2020 - 2026)

  • According to Statista, global revenues of social commerce are projected to reach $890 billion by 2025.

  • According to Statista, 54% of social media users worldwide have made a purchase using social media.

  • Almost 70% of purchasing decisions made worldwide are influenced by social commerce (Sprout Social).

Shifting Patterns in Different Countries

Figure 2: Percentage of Online Consumers Buying from Social Networks in Selected Countries Worldwide in 2022

Social commerce has not developed in the same way in every nation. Social commerce develops differently in each location due to differences in customer behavior, laws, and technology infrastructure.

Social commerce, which blurs the boundaries between social networking and online shopping, was pioneered in China by platforms such as WeChat and Alibaba's Taobao. Sales of billions of dollars have been generated by livestream shopping, in which influencers present things in real-time.

In the meantime, Facebook and Instagram have become the biggest names in social commerce in the West by taking advantage of their enormous user bases and advanced ad targeting features. Instagram Shopping and Facebook Marketplace are two examples of features that have turned these platforms into online shops where users can easily make purchases from within the app.

Impact on Retailers:

Social commerce gives retailers access to:

  • Enhanced discoverability: Influencer marketing and organic reach on social media put products in front of more people.

  • Enhanced consumer engagement: Live chat and product reviews are examples of features that help build stronger brand relationships.

  • Easier purchasing process: In-app purchases reduce friction and increase conversion rates.

Achieving New Dimensions:

Figure 3: Comparison of Popular Social Commerce Platforms

The following reasons make social commerce an effective method for reaching large target audiences:

  • Social media penetration: With billions of users on sites like Facebook, there is a tonne of marketing opportunity.

  • Targeted advertising: Retailers may reach particular demographics and interests thanks to social media's sophisticated targeting possibilities.

  • The power of influence: Influencer marketing and user-generated content increase sales and foster trust.

Instances of Effective Social Commerce Initiatives:

Figure 4: Estimated Share of Social Commerce in E-Commerce in the Biggest Economies (Like, Share, Follow, Buy)

Social commerce has been used by several brands to boost sales, raise brand awareness, and cultivate client loyalty. Among the noteworthy instances are:

  • Nike's Sneakerhead Community: Using Instagram and Snapchat to interact with sneakerheads and generate buzz about upcoming releases, Nike produced unique product drops and interactive experiences for its devoted fan base.

  • Sephora's Beauty Insider Community: By offering its followers special deals, product recommendations, and makeup lessons, Sephora created a flourishing online community of beauty fanatics on Pinterest and Instagram.

  • TikTok’s #TumbleweedChallenge: The #TumbleweedChallenge on TikTok encouraged users to make films of themselves "transforming" into cowboys and rolling tumbleweeds. TikTok and Walmart collaborated on this initiative. After going viral, the ad significantly increased engagement and increased sales of cowboy hats and related goods.

  • Reformation's #EcoLuxe Challenge: To encourage eco-friendly apparel choices, the fashion brand Reformation used user-generated content and Instagram Reels. By encouraging people to share and style Reformation goods, the campaign promoted community building and brand advocacy.

  • Collaborations with Influencers at Gymshark: Gymshark, a fitness gear brand, is a social media influencer marketing pro. Through partnerships with relevant fitness personalities, Gymshark is able to reach a specific audience and establish credibility by way of genuine product endorsements.

  • Kylie Cosmetics' Direct-to-Consumer Model: The direct-to-consumer business model of Kylie Cosmetics involves the makeup company of Kylie Jenner selling only on social media, eschewing traditional retail channels. By using this strategy, Kylie's audience may identify deeply with her, and brand loyalty is encouraged.

Figure 5: Percentage of Each Generation Who Say Social Media is their Preferred Channel for Product Discovery


We may anticipate even more cutting-edge and engaging shopping experiences as social media networks advance their commerce features. A sneak peek at future developments includes AI-powered personalized suggestions, augmented reality try-on tools, and the growth of live shopping events.

Social commerce represents a fundamental shift in the way consumers find, evaluate, and buy products—it's more than simply a fad. Companies that adapt to this changing environment will be well-positioned to prosper in the fast-paced world of Internet retail.

About RapidPricer

RapidPricer helps automate pricing and promotions for retailers. The company has capabilities in retail pricing, artificial intelligence and deep learning to compute merchandising actions for real-time execution in a retail environment.

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