Social commerce will rise and fall

Social commerce will rise and fall. Social shopping means easy eCommerce. But not everyone is buying it, yet.

Much like influencer marketing a few years ago, social commerce is still finding its feet. In some regions, such as China, 49.5% of social media users have made a social purchase, compared to 44% in the US.

Social commerce in China is estimated to be responsible for around 14.3% of all eCommerce in 2023, compared to just 4.9% in the US.

There is huge potential for growth, and with the increase in post-pandemic digital growth, and the rising cost of living driving increased demand for affordability, consumers will be more willing to explore new shopping channels. Why is it important now? The trend fluctuates by platform and region. TikTok has abandoned plans to roll out live eCommerce in Europe and the US, as it focuses on its UK expansion.

Meanwhile, Meta has launched the Meta Avatars Store to encourage digital sales. Looking at mentions of social commerce, the US is showing the largest room for growth, with a large increase in conversations. While Facebook is the leading platform linked to the social shopping trend.

There’s definitely room for brands to expand their social selling capabilities in 2023, but they need to consider their market and platform carefully. “The way consumers are purchasing is constantly developing and has changed massively over the past three years. The pandemic sent shockwaves through most industries but in fashion and eCommerce particularly it changed the way we shop and for a time what we shopped.

The growth of TikTok has led consumers to be influenced by even more micro-influencers and everyday people. We’ve seen TikTok strategies become crucial to help drive sales for our clients. However these perform best when teamed with other strategies such as SEO and PR.

” - Will Hobson, PR Director, Rise at Seven. “Social commerce is a democratizing force for consumers and small businesses and has profound implications for marketers. 2 billion people purchased on social platforms last year and this is growing 3x faster than traditional eCommerce.

The journey is led by spontaneous discovery and inspiration, not the traditional path. Trusted, seamless payments are critical to the experience.” - Cheryl Guerin, Executive VP of Brand Strategy & Innovation, Mastercard.

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