In this digital era where technology has virtually invaded every aspect of a man’s life, the realm of commerce has taken a giant leap from brick and mortar stores to an online presence. Now, it has taken yet another step forward, integrating itself seamlessly with our social lives. The latest trend to have hit the market with a bang is ‘Social Commerce’ – an online shopping revolution powered by social media platforms.
For the uniniticed, social commerce is a modern method of e-commerce where consumers shop via social communities and networks. When using social platforms such as Facebook, Instagram, Twitter, and Pinterest, users now have the ability not only to share, comment, or like a product, but also to purchase it right from their social media feeds. Influencers, celebrities, and peers shape your buying decisions as they share product recommendations or reviews.
In a study by Business Insider, social commerce sales are predicted to represent 5% of total US retail sales in 2025, hitting around $80 billion. Worldwide, Statista predicts that the social commerce market will reach over $604.5 billion by 2027, growing at a staggering rate of 31.4% annually from 2021. This estimations outline the potential of social commerce industry and its impact on retail sector.
The journey of social commerce started subtly with users sharing content related to products or services, writing reviews, or relying on peer recommendations for purchase decisions. With the advent of ‘buy’ buttons on social media posts, website links in bio, shoppable Instagram stories or pins, social commerce has become more accessible. Platforms have introduced a smooth shopping experience, allowing purchases without the need to leave the app.
Layered with Virtual Reality (VR) and Augmented Reality (AR) experiences, this form of shopping has opened up a different level of interactive and immersive buying. For instance, Ikea’s AR app allows customers to virtually place furniture in their homes to check if it fits well, while Sephora’s ‘Virtual Artist’ app provides a makeup trial in real-time.
One cannot talk about social commerce without mentioning China’s WeChat. It transformed itself from a mere messaging app to a comprehensive platform that enables everything from booking movie tickets, food delivery to buying products without ever leaving the app. Around 800 million users monthly actively use ‘WeChat Mini Programs.’
Social commerce has also empowered small businesses. They now have an inexpensive global storefront at their fingertips, reaching their target audience more effectively. Additionally, businesses can understand consumer behaviour better through insights and analytics provided by these platforms, leading to more personalized marketing.
However, with this transformation also come the concerns over data privacy and security. Social commerce falls into the grey realm where consumer data isn’t just reserved for marketers but is intrinsically linked to the very fabric of social networking. Facebook’s Cambridge Analytica scandal, and concerns over TikTok’s data practices loom large over the sector.
Regardless, social commerce is more than a buzzword. It’s becoming a significant part of the online shopping experience influencing consumer behaviour. Will it replace traditional e-commerce websites? That is yet to be seen. But one thing is for sure; social commerce is revolutionizing shopping in a way we would have never imagined. To simply scroll and shop from the comfort of our social feeds is now as easy as it can get, proving that indeed, the world is just a click away.
Sources:
1. Business Insider: The 5 Biggest Trends in the E-commerce Industry
2. Statista: Social Commerce – Statistics & Facts
3. TechCrunch: How Social Commerce Growth Could Shape Future Of E-commerce
4. CNN Business: How social media is changing the way we shop.
5. The Wall Street Journal: Inside the World of Social Media Shopping In China.
6. Forbes: Social Commerce Is Becoming ‘The Ultimate Form Of Advertising’ For Brands. How The Trend Is Accelerating.
7. American Marketing Association: Will Social Commerce Change Shopping Forever?
