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    What is social commerce? Stats, trends and tips marketers should know for 2024

    Online shopping has gone social. Imagine scrolling through Instagram, finding something you love. You complete your purchase all within the app and avoid navigating to a product landing page. That’s the exact type of experience social commerce offers. It simplifies the purchase journey by eliminating extra steps and makes consumers more likely to complete their purchases.

    As such, social commerce could be the key to success when using social media for retail. In this post, we take a deep dive into what social commerce is and how your brand can make the most of it.

    Table of Contents

    What is social commerce?

    Social commerce is the buying and selling of goods or services directly within a social media platform. It involves taking social media beyond its traditional role in the discovery process. Instead, users will get to complete the entire purchase journey within the same platform. That means they can quickly go from discovery to purchase without leaving their preferred apps.

    Leading social media platforms now offer dedicated social commerce tools to retailers. This includes platforms such as Facebook, Instagram, Pinterest and TikTok. Using these tools, you can create digital storefronts right within the respective platforms. That way, people can use these storefronts to discover and buy products without having to visit another website.

    Social commerce vs. ecommerce

    Ecommerce broadly encompasses the process of buying and selling goods online. It includes selling through different digital channels including online marketplaces, websites and dedicated retailer apps.

    Meanwhile, social commerce involves selling directly through a social media platform. Since social media is an online channel, social commerce is a subset of ecommerce but it’s not the same as ecommerce.

    Best social commerce platforms to use in 2024

    Facebook, Instagram and Pinterest were the first to introduce native social commerce capabilities. Now platforms like YouTube and TikTok have joined in and started taking center stage with their own social commerce features.

    If you’re interested in getting ahead of this potential revenue channel, here are the platforms you’ll want to test out:

    Facebook

    Facebook’s social commerce tool, Facebook Shops, has a very low barrier to entry. Shops are free to set up and are accessible within your Facebook business profile.

    What is social commerce? Stats, trends and tips marketers should know for 2024

    If you’re using a partner platform, you can automatically sync your entire inventory list in seconds. If not, you can use a spreadsheet to upload product information.

    The Facebook Shop tab on the platform’s mobile app features products based on user preferences. This helps to encourage organic brand discovery. Once consumers find your products, they can complete a purchase within the app or on your website. Sellers communicate with customers within Messenger to ask questions, offer support and more.

    Instagram

    Instagram Shopping is directly linked to your Facebook Shop. To set up a shop, users must link their Instagram business account to their Facebook business profile. Once that’s completed, users can upload an existing product catalog or create a new one.

    Then you can use Instagram Product Tags to make your content shoppable and your products easier to discover. Product Tags allow you to highlight items from your product catalog directly in your videos and posts. Users can tap on a tag and immediately learn more about the product.

    Pottery Barn Instagram post with shoppable product tags.

    The “View shop” button lets them browse your other listings and enjoy a seamless shopping experience. Like Facebook, purchases take place within the app or on your business website.

    TikTok

    It’s easier than ever for retailers to make money on TikTok since the platform introduced social commerce capabilities. Businesses can now set up a TikTok Shop to showcase their products and drive purchases directly within the app. With this feature, you’ll be able to create shoppable videos and even enable viewers to shop directly on your TikTok LIVE broadcasts.

    Three side-by-side screenshots showing different options to shop on TikTok - live shopping, shoppable videos, product showcase

    Pinterest

    Pinterest Shopping has made it easier for retailers to sell on Pinterest. It lets you upload your product catalog to your Pinterest business page. You can then tag products in your Pins so people can click on those tags to learn more about them.

    Keep in mind that these Product Pins are not direct social commerce tools. Buyers will still get redirected to a product-specific landing page to complete their purchase. However, it simplifies the buying journey as people can get the product info right within Pinterest.

    Levi's Pinterest Shop with product tags for different items.

    5 benefits of social commerce for your business

    1. Reach a wider audience of potential customers

    Social media usage is constantly on the rise, with more than 5 billion people using it worldwide. Couple that with the fact that consumers are discovering new brands and products through social media.

    Consumers are finding products through a social media post. With social commerce now integrated into social media apps, researching products on social media and seeing a friend’s post are other common ways consumer’s discover products.

    Not to mention, direct purchases via a link or in-app social media purchases is becoming more commonplace on social than ever. It’s estimated that there will be 110.4 million US social media buyers by end of 2024–that’s half of all social media users.

    When you leverage social commerce, your products get in front of a massive audience. You’ll reach more people who could turn into customers.

    2. Convert customers where they are and remove friction

    Social commerce makes it easy to convert customers where they are since they can directly make purchases on the platform. It eliminates the need to switch to a different app or website to find the product they want to buy. As such, it removes friction and barriers to purchase by shortening the buying journey.

    3. Increase reviews and recommendations through social proof

    If your business is new to selling online, social media is the perfect place to begin establishing much-needed social proof. When shopping online, your buyers can’t necessarily test or try on your product. Reviews can be the key to making an educated purchase decision.

    Managing your end-to-end customer journey on social media creates a positive feedback loop. This will eventually have an impact on your bottom line.

    Your social content attracts new followers into your funnel. And offering social commerce gives them a chance to purchase and leave reviews in one centralized location. As your engagement grows with new reviews coming in, it sends a positive signal to social media algorithms. These algorithms will deem your content relevant to even more potential customers.

    4. Gather useful data on your customers’ social habits

    Social commerce features give you direct access to your customers’ social profiles. This gives you valuable customer data that you can use to inform your existing strategy.

    Combine these insights with social media listening to get an even better understanding of your audience. That way, you get an even more comprehensive look into the habits and interests of your customers.

    Screenshot of the Sprout Social Listening tool showing sentiment summary and how you can write posts based on listening trends.

    You can create more inspired conversion experiments based on these insights. Findings can inform messaging A/B tests, CTA optimizations and more. So you can make a bigger impact with your target audience.

    5. Drive additional revenue than traditional ecommerce

    Social commerce is driving an increasing portion of marketing-driven revenue for ecommerce businesses. According to EMarketer, retail social commerce sales in the US is estimated to pass the $100 billion milestone in 2025.

    With retail social commerce set to triple by 2025, hopping on the social commerce bandwagon is a great move. As social commerce opens up new avenues for your business to drive sales, it gives you the opportunity to grow your revenue.

    6 social commerce statistics marketers should know

    1. Facebook is the most popular platform for social commerce. It’s expected to reach 64.6 million social commerce buyers in 2024.
    2. Instagram comes next with an estimated 46.8 million buyers making a purchase in 2023.
    3. TikTok is up and coming option with 35.3 million users buying on the platform. In 2023, the platform gained more shoppers than the net increase of shoppers on Facebook, Instagram, and Pinterest combined.
    4. According to Statista, the social commerce penetration rate had risen by 23.6% in 2023. It’s expected to continue to rise by another estimated 5% by 2028.
    5. 50% of marketers plan to increase their investment in social selling in 2024.
    6. 32% of Gen Zers make a purchase based on an influencers recommendation and for Millennials, it’s 21%.
    7. In a global Statista 2024 survey among brands and marketing agencies, 26% of respondents stated they planned on investing more than 40% of their marketing budget into influencer marketing activity. Additionally, 22.4% of respondents stated they were planning to invest 10-20% into this form of marketing.
    8. The global influencer market size amounted to $15.2 billion in 2022 and was projected to surpass $22 billion by 2025. In 2023, the global influencer market size amounted to $21 billion.

    4 successful social commerce examples

    Check out these four social commerce examples to find inspiration on how to build your own strategy.

    1. The Tiny Tassel

    The Tiny Tassel is a retailer specializing in handmade jewelry. It uses Facebook Shop features to create informative, Facebook-native product pages. Each listing features detailed product descriptions, customization options and shipping information.

    Brands should follow Tiny Tassel’s lead and post listings that communicate value. This builds trust with potential buyers who are new to your brand, motivating them to make that first purchase.

    Product listing on Tiny Tassel's Facebook Shop with two pairs of green tassel earrings.

    2. Patagonia

    Pinterest boards can serve as product navigation tools for your audience. Take Patagonia’s Pinterest structure: the Product Pin boards mimic its website navigation. This creates a familiar experience for returning audiences. Similarly, new potential customers will enjoy a consistent experience when they click through to the brand’s main site.

    Patagonia Pinterest page showing products organized into different boards.

    Most social commerce platforms offer just enough flexibility to recreate your brand experience. Use these tools to create consistency for your audience.

    3. Target

    Catalog setup can take a long time If your ecommerce platform doesn’t partner with Facebook. Rather than list all of its products, Target focuses on items that align with its Instagram content strategy. This creates a better browsing experience for its established Instagram audience.

    If you’re working with a larger inventory, you can use Sprout’s Instagram Performance Reports. This helps you make smarter listing choices based on content engagement and popular hashtags.

    Instagram post from Target with a product tag for a book titled "Living Wild" and a product detail page on the next screen.

    4. Made by Mitchell

    Makeup brand, Made by Mitchell introduced a product that was exclusively available on TikTok Shop. The brand took advantage of TikTok’s LIVE shopping feature for its initial launch.

    The brand had collaborated with TikTok creator, Melissa Jade for this collection. So the two parties had a duel livestream on both their accounts. This attracted 50,000 LIVE views combined and a total of 2.4 million product views. The livestream session even had a 100% sell-out rate.

    Brands should follow suit and take full advantage of TikTok’s LIVE shopping feature to engage shoppers in real-time. You can even maximize your reach with influential content creators.

    The brand further encouraged sales through mystery beauty bundles. People were buying these mystery bundles on the brand’s TikTok Shop and creating unboxing videos. This helped to build a buzz around the collection and persuaded others to buy their own mystery boxes.

    Two side-by-side TikTok screenshots: The left screen showing a mystery box packing process and the right screen showing the TikTok Shop product showcase from Made by Mitchell.
    Source: TikTok

    5 ways to increase sales on social media using Sprout Social

    1. Know your audience

    Align your social commerce strategy with your target social audience for maximum engagement. Choose products and messaging based on this specific customer subset instead of simply repeating what’s on your website.

    A screenshot of Sprout's Facebook Pages report that demonstrates impressions, engagements, post link clicks and audience growth for a specific Facebook page.

    A social media analytics tool can help you keep up with information as your audience grows. Sprout Profile Reports offer follower demographic data to create platform-wise customer personas. Use these in combination with post performance data to make your initial decisions about which products to list and how to position them.

    2. Schedule your content

    Once you share a listing, schedule some promotional posts to build interest and drive traffic to your new social storefront. This is a great way to share additional product information, like walkthroughs and close-up shots.

    Sprout's built-in social commerce catalogue

    Use Sprout’s built-in social commerce catalogs to add shoppable tags and links to your products while scheduling your content. By adding products to your posts, you can meet customers where they want to shop and streamline their purchase process.

    3. Personalize your replies

    Asking questions about a product or service is one of the top reasons consumers reach out to brands on social. They may have requests for specific product details, ask about a specific order or want to know which options are available. Not only can you answer those questions by recommending a product, but you can even share a direct link to buy it. It’s a win-win—you’re delivering helpful service and making it easier for consumers to buy what they’re looking for.

    Sprout helps you add direct product links to replies using built-in product catalogs from Facebook Shops and Shopify. You can also answer questions about order status, shipping details and more without switching to another tool.

    Sprout Social's engagement workflow for contacts requesting details on a Shopify order.

    4. Learn what works (and do more of it)

    As you dip your toe into the world of social commerce, the best thing you can do is measure, measure, measure. Knowing what’s working can help you repeat your success as you scale your strategy. It can even help to illuminate new opportunities you might have otherwise missed.

    Monitor your social analytics to manage performance. Remember to categorize your posts in Sprout by tagging them, giving you an in-depth look at what’s working and what’s not. Combine this with UTM parameters and you can dig in, see which posts drove sales and adjust your strategy to optimize your posts. With Sprout, you can schedule report deliveries on a weekly or monthly basis to stay on top of this process.

    5. Automate conversations and increase response times

    Failing to provide timely responses is one of the biggest social commerce mistakes. Before people finalize their purchases on your social media storefront, they may need some additional info. It’s your job to ensure that those potential customers get the response they need when they need it.

    Sprout lets you build chatbots with customized responses so you can automate those conversations. That way, you can provide quick responses even when your support team is unavailable. And customers will get the answers they need to make informed purchase decisions.

    A gif of the Sprout Social chatbot simulation tool.

    Starting out with a social commerce strategy

    Social media has revolutionized the way businesses and consumers interact, and social commerce is its newest frontier. You now know all the basics about social commerce–from what benefits you can enjoy to which platforms you should use. So if you’re ready to get started, download our free interview guide on how to craft a social commerce strategy.

    The post What is social commerce? Stats, trends and tips marketers should know for 2024 appeared first on Sprout Social.

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