How Will Social Commerce Evolve?

In today’s rapidly evolving digital landscape, businesses are constantly seeking innovative ways to connect with their customers. Social commerce, a dynamic fusion of social media and e-commerce, has emerged as a powerful force reshaping the retail industry.

Social commerce refers to the practice of leveraging social media platforms to facilitate buying and selling products or services directly within the social ecosystem. It represents a mix of social interaction, entertainment, and e-commerce, creating a unique shopping experience. With its meteoric growth and transformative potential, this is a trend that no brand can afford to overlook.  

Importance and Growth of Social Commerce 

The growth of social commerce is nothing short of explosive. Driven by high rates of mobile penetration and demographics with an affinity for social media, the industry is set to skyrocket. Predictions indicate that by 2025, social commerce will reach a staggering $660 billion, up from $295 billion in 2021. While it currently accounts for only 4% of e-commerce sales in the US, the story is different in Asia, where social commerce commands nearly half of e-commerce sales in Southeast Asia. 

The global Social Commerce Market, estimated at $89.4 billion in 2020, is projected to soar to $604.5 billion by 2027, boasting a remarkable CAGR of 31.4% from 2020 to 2027. These numbers underscore the global appeal and the undeniable trajectory of social commerce. 

Current State of Social Commerce 

Social commerce operates across a variety of platforms, where an array of features seamlessly enhance the shopping experience. Among these, shoppable posts, in-app purchases, and product tags stand out as transformative tools. For instance, Instagram’s shoppable posts and Pinterest’s shoppable content has revolutionized how businesses connect with consumers. Shoppable posts are gaining popularity with “at least one in four consumers using social media purchasing products or services”, streamlining the transition from inspiration to action. In-app purchases enable users to complete transactions within the platform, reducing checkout friction. Product tags offer detailed product information with a simple hover. These features have turned social media into immersive shopping destinations, bridging the gap between inspiration and purchase, and as social commerce evolves, these tools are likely to become even more sophisticated, further blurring the lines between social interaction and online shopping.

Key Trends Shaping the Future of Social Commerce 


Integration of Augmented Reality (AR) and Virtual Reality (VR) 

The integration of augmented reality (AR) and virtual reality (VR) technologies marks a profound revolution in the landscape of social commerce. Among these technologies, AR stands out as a game-changer by enabling customers to virtually try on products, effectively bridging the gap between the online and offline shopping experiences. This innovation significantly bolsters consumer confidence in making online purchases, as they can gauge the fit and appearance of products before committing. The impact for businesses is palpable, with reduced return rates, heightened customer engagement, and improved purchase decision-making emerging as key benefits.

For example, furniture retailers now offer virtual room planning tools, allowing customers to visualize how their selected pieces will look in their own living spaces. Similarly, beauty brands are capitalizing on AR by offering virtual makeup trials, allowing customers to experiment with various looks before making a purchase. These tangible successes underscore the transformative potential of AR in enhancing the social commerce landscape and providing customers with highly immersive and confidence-boosting shopping experiences. 

Leveraging Influencer Marketing and User-Generated Content (UGC) 

Influencer marketing is undeniably a game-changer in the realm of social commerce. By partnering with influencers, businesses gain access to not only their extensive and highly engaged audiences but also the innate trust and authenticity these influencers bring to the table. Further, “content creators play a vital role as they boost product discovery (78%), educate and inform (76%), and inspire their audiences to try new products (73%).” On the other hand, user-generated content (UGC) serves as the bedrock of social proof, allowing satisfied customers to share their experiences and recommendations. When businesses encourage UGC, they foster authentic connections with their customers, as it’s often real people sharing real experiences. Combining influencer partnerships with UGC creates a powerful synergy, where influencers can catalyze product discovery and UGC can solidify the decision-making process, ultimately generating buzz and significantly boosting conversion rates. 

Social Media Shopping Features and Live Shopping 

The integration of shopping features within major social media platforms has transformed the way users engage with products and brands. Shoppable ads have emerged as a cornerstone of digital advertising, with platforms such as Facebook, Instagram, and TikTok at the forefront of this trend. These ads seamlessly blend informative content with purchasing opportunities, making it easier than ever for users to explore and buy products they discover on their social feeds. Concurrently, the rise of live shopping has created a dynamic and interactive shopping experience where sellers engage with customers in real-time through video streams. This novel approach has proved to be highly effective, with brands hosting livestream events reporting conversion rates of up to 30% and an 40% increase in average order value, significantly surpassing the results achieved through traditional e-commerce methods. Live shopping combines the convenience of online retail with the personal touch of in-store interactions, offering users a unique and engaging way to make informed purchase decisions directly from their favorite social platforms. 

Integration of Social Commerce with Messaging Apps 

Messaging platforms like WhatsApp, WeChat, and Meta are entering a new era by seamlessly integrating social commerce features. This integration streamlines the shopping experience for users, bridging the gap between traditional e-commerce and social media. These platforms enable businesses to manage inventory, process payments, and fulfill orders efficiently, all within a centralized system. WhatsApp has recently implemented a business directory, allowing users to search and contact businesses, all without leaving the app. This not only simplifies operations but also enhances data synchronization, offering businesses a comprehensive view of customer behavior and preferences.  

And consumers are making good use of these messaging platforms; according to Meta, “last holiday season, 2 in 3 people surveyed globally told us they had messaged a business.” These apps leverage their extensive user bases to facilitate real-time interactions and seamless purchasing experiences, allowing businesses to forge deeper connections and drive sales directly within the messaging environment. 

Impacts on Businesses and Consumers 


Benefits for Businesses: Increased Reach and Customer Engagement 

The fusion of social media and commerce has bestowed upon businesses a remarkable opportunity to expand their reach and enhance customer engagement. Shoppable media, in particular, has emerged as a pivotal element in this paradigm shift. Today’s shoppers are not only seeking products; they’re actively looking for engaging content that informs, entertains, and inspires. Brands that recognize and harness this trend have reported remarkable successes. 

Take, for example, the case of Barbour, which experienced a staggering 42% increase in sales by strategically deploying shoppable Instagram posts. These posts seamlessly blend the allure of captivating visuals with the ease of purchasing, creating an enticing proposition that resonates with consumers. By capitalizing on the convergence of content and commerce, businesses can not only attract but also actively engage customers in an increasingly competitive digital landscape.

Benefits for Consumers: Enhanced Shopping Experiences and Convenience 

But it’s not just businesses that benefit. Social commerce has ushered in a transformative era for consumers, one marked by unparalleled shopping experiences and newfound convenience. With the integration of shopping functionalities within social media platforms, the entire shopping journey has been streamlined. Gone are the days of laboriously navigating through separate e-commerce websites. Now, customers can easily discover, explore, and purchase products directly within their social media feeds. This revolutionary approach reduces the barriers to purchase, offering a hassle-free and enjoyable shopping experience. Features like “Shop Now” buttons, product tags, and in-app purchases all work to simplify the buying process, increasing the likelihood of a purchase. In fact, “87% of people on Pinterest have bought a product because of Pinterest”. AR integrations help as well; “according to Pinterest, users are five times more likely to purchase something if they can try it in AR.” Additionally, the personalized product recommendations based on user preferences and browsing history make each shopping experience more tailored and relevant. Ultimately, social commerce empowers consumers to effortlessly transition from inspiration to acquisition, making the shopping journey more efficient, engaging, and enjoyable than ever before. 

Fostering Success within Social Commerce

In the ever-evolving landscape of social commerce, businesses find themselves navigating a landscape rife with both challenges and opportunities. Creating success from this growth means brands must skillfully adapt to the ever-evolving terrain, identifying opportunities that align with their brand values and delight their target demographics. The art of cultivating authentic partnerships and crafting campaigns that not only boost brand visibility but also drive conversions becomes the linchpin in this environment, where trends and preferences shift at a breakneck pace. 

These platforms offer a wealth of opportunities, from vast user bases to powerful advertising capabilities and rich data insights, but that’s only part of the equation. Consumers today spend significant amounts of time on social media and it’s through these social platforms that many discover new brands, products, and services. Social commerce allows consumers to seamlessly navigate through the awareness, consideration, and purchase stage of the customer journey, quickly, and without leaving the platform; a crucial advantage in a world of many brands and many products.

However, ease of use isn’t enough; consumer trust is crucial for brands to achieve and is key in establishing authenticity and creating long-term success in the realm of social commerce. Customers must feel unwavering confidence in their interactions with businesses. This bedrock of trust begins with credibility, underpinned by the provision of precise product information, transparent communication, and genuine customer service. Bridging the digital divide and ensuring customers feel valued play pivotal roles in fostering trust, which, in turn, cultivates loyalty and advocacy – invaluable assets in the fiercely competitive social commerce landscape. 

Considering that “consumers are using an average of six touchpoints to buy an item, omnichannel presence has never been more important to retailers. Social commerce will have to be a critical tool within a brands’ wider channel mix.” To thrive, business leaders must not only embrace current trends but also stay vigilant, adapt to changes, and seize the opportunities that social commerce presents. The future of commerce is undeniably social, and those who navigate it wisely will reap the rewards of increased reach, engagement, and success.