Social Commerce is Redefining Online Shopping: Are You Ready?
Social commerce is transforming how we shop. Once a novelty, it’s now an undeniable force, with sales accounting for 18.5% of all e-commerce transactions in 2023, generating a whopping $571 billion in revenue. By 2028, that figure is projected to pass the trillion-dollar mark.
For brands, ignoring social commerce is no longer an option. As the digital shopping revolution continues, those who don’t adapt risk being left behind. But for those who do, there’s a massive opportunity to turn scrolls into sales.
Below, we explore how social commerce works, where it’s headed, and why your business needs to jump in.
What is social commerce, anyway?
Picture this: A user is scrolling through Pinterest for home décor ideas. A set of pillows catches their eye. They tap the image—bam—product details pop up, along with a purchase link. Within seconds, their dream décor has jumped off the feed and into the mail. That’s social commerce in action.
Unlike traditional e-commerce, which happens on dedicated sites or apps, social commerce lets users explore, discover and buy products directly within social platforms. No extra steps, no friction.
This is shopping with a social twist, happening in real-time as people interact with the content that matters most to them.
A global boom
Worldwide revenue from social commerce is projected at approximately $700 billion for 2024 alone. While some regions have embraced the change faster than others, the numbers are hard to ignore:
China, Thailand, and Colombia are leading the way, with approximately 90% of internet users making purchases through social platforms in 2023.
Live shopping is also surging, particularly in Asia, where over 70% of consumers engage in livestream purchasing.
Douyin, China’s version of TikTok, has a projected take of nearly $200 billion for 2024, dwarfing TikTok’s global estimate of $20 billion.
Meta (Facebook & Instagram) currently reigns in the West, with an expected $94 billion in revenue from social commerce.
Social commerce is emerging as a powerhouse in the evolving marketplace, challenging conventional e-commerce models by integrating shopping directly into consumers’ daily digital routines.
The UK market is catching up
The UK may not be leading the charge in social commerce just yet, but it’s picking up momentum. Desktop referrals via social media have remained fairly stable over the past few years, but the real shift is happening on portable devices. Social referrals to e-commerce sites on tablets have grown significantly, and smartphone traffic is also on the rise—signalling that Brits are starting to change how they shop online.
Social commerce in action
Here’s a glimpse of some social commerce examples across top platforms:
TikTok Shop: TikTok is a goldmine for impulse buys, with brands, creators, and small businesses embedding product tags in videos and live streams. The algorithm turns trending content into immediate conversions, with limited-time flash sales and exclusive discounts sparking a sense of urgency.
Instagram shopping tags: Instagram allows brands to tag products directly in posts, stories, reels, and live videos, making every piece of content into a potential storefront. Users can tap a product tag to see pricing, details, and a direct purchase link.
Facebook Marketplace: Facebook Marketplace is all about community-driven commerce. Users and businesses can list products and chat directly with buyers, with location-based search enhancing discovery. Facebook Live shopping takes things further, offering real-time product showcases, exclusive deals, and a chance for businesses to connect directly with their audience.
Along with Pinterest, YouTube and others, these platforms are finding dynamic ways to embed shopping into digital experiences. But the success of these methods often varies between generations, with certain platforms resonating more strongly with specific age groups.
Generational dynamics: Who’s shopping where?
Knowing where each generation is shopping can make all the difference in crafting an effective strategy for your business. Let’s take a look at what’s working for each group right now:
Millennials dominate social commerce, particularly on Instagram and Facebook. They crave authenticity, trust peer recommendations, and are highly influenced by influencer-driven content.
Gen Z, digital natives through and through, sees social commerce as an extension of their everyday online lives. Platforms like TikTok and Snapchat are their go-to spaces, where they interact with content in real time and make purchases on a whim.
Boomers and Gen X, though slower to adopt, are engaging with social commerce, particularly on Facebook. Live shopping and community-driven platforms like Marketplace are resonating most with these groups.
By understanding where each group shops and how they engage, you can tailor your approach to reach them in the most authentic and impactful way possible.
Pros and cons of social commerce
Social commerce is collapsing the gap between discovery and purchase. Its potential is huge, but brands need to understand the benefits and challenges of selling on social before diving in the deep end.
Benefits
Engagement: Social commerce converts passive browsing into active participation, helping you build deeper, more meaningful relationships with consumers.
High conversion rates: The fewer the clicks, the higher the sales. Social commerce removes barriers, keeping shoppers engaged without redirecting to external sites.
Access to younger audiences: Gen Z and Millennials aren’t just digital-first, they’re social-first. They are becoming accustomed to instant, interactive shopping experiences. Social commerce helps you meet them where they are.
Cost-effective: With user-generated content, influencer collaborations, and viral marketing, brands can drive high ROI without relying on extensive campaigns.
Challenges
Platform dependence: Brands don’t own the playground—social platforms do. Algorithm shifts, policy changes and disruptions can limit reach and derail your business.
Fierce competition: As more brands jump on the social commerce bandwagon, standing out and grabbing attention will require sharp storytelling, community-driven content, and a strategy that evolves as fast as the platforms themselves.
Building trust: Establishing trust on social platforms, especially for newer brands, is key. Without strong social proof—reviews, UGC, and responsive customer service—winning long-term loyalty can be an uphill battle.
Brands that treat social commerce as just another sales channel risk falling behind. But for those that innovate, adapt, and build trust? They’ll own the future of shopping.
Strategies to get (and stay) ahead of social commerce trends
When it comes to the social commerce industry, it's all about turning attention into action. The right strategies can take your business from visible to irresistible. Let’s take a look at some of the key components of a strong strategy.
Partner with influencers: Consumers trust influencers and micro-influencers more than traditional ads. Team up with the right creators to amplify your brand message.
Go mobile-first: Mobile devices are the primary driver of social commerce, so ensure your checkout process is mobile-friendly.
Live events and short-form video: Engage customers with live events and content that mirrors the way they consume media.
Use AI and personalisation: Leverage AI-driven recommendations to deliver tailored shopping experiences.
Encourage UGC: Authentic content from real customers adds social proof and builds trust.
By staying agile and aligning with consumer behaviour, you can turn opportunities into lasting relationships. The key is to adapt, innovate, and continuously engage with your audience in ways that feel natural, authentic, and compelling.
Brands doing it right
Some brands aren’t just keeping up—they’re redefining the social commerce game. These are just a few of the companies in the lifestyle and beauty industries who have cracked the code, blending engagement, entertainment, and e-commerce to turn social platforms into powerhouses of sales:
Glossier: A masterclass in Instagram-driven success. Glossier has built a fiercely loyal community by leveraging influencer partnerships and user-generated content, turning its audience into brand advocates and fuelling massive sales in the process.
Fenty Beauty: Rihanna’s cosmetics empire makes the most of interactive content and live-streamed product launches on Instagram and TikTok, blending entertainment with shopping.
Gymshark: This fitness brand has used influencer-driven marketing with massive impact. They’ve maximised TikTok and Instagram for brand awareness as well as direct sales, with social media functioning as a key revenue engine.
These brands prove that when you get the mix right—engagement, seamless integration, and community-driven content—social commerce becomes an unstoppable force for revenue.
What's next for social commerce?
From VR to blockchain, let’s explore the most talked about trends driving the future of social commerce:
Live commerce: With live shopping already booming in Asia, we can expect it to become a staple of the Western social commerce experience.
AI-driven shopping: Artificial intelligence will revolutionise how brands engage with consumers, from personalised recommendations to smarter customer service tools.
Augmented & virtual reality: AR and VR will enhance shopping by allowing users to virtually try on clothing, makeup, or preview home décor before buying.
AI-powered shopping assistants: Expect more advanced chatbots and personal shoppers that provide real-time product suggestions and streamline the purchase process.
Seamless checkout: One-click payment solutions—think digital wallets and BNPL—will make purchases quicker and easier, reducing cart abandonment.
Web3 and NFTs: Blockchain tech and virtual storefronts will reshape online retail, with NFTs offering exclusive digital products and loyalty rewards.
Growth of YouTube: With YouTube's growing influence in the e-commerce space, the platform is poised to become a powerhouse for social commerce, blending entertainment and shopping into a dynamic new retail experience.
As we continue to define social commerce, every brand will need a tailored strategy, but by carefully considering emerging trends, you can position yourself to drive meaningful connections and measurable growth.
The time is now
The future of shopping has definitely arrived, and it’s social. Shopping is now part transaction, part conversation. As platforms continue to evolve, the lines between social interaction and shopping will continue to blur.
This new landscape is full of opportunities to make shopping more personal, dynamic, and effective than ever before. Brands who dominate will be those who build communities, foster connection, and work creatively to make shopping a seamless social experience.
Want to create a social commerce strategy for your brand? Get a free consultation with Studio East.
