Social Commerce and the potentials that need to be exploited in 2024

Social commerce, also known as social commerce, is the use of social media platforms to promote and sell products/services. It allows businesses and customers to interact directly via social networks, creating a virtual space that provides a seamless shopping experience right within the applications users love. 

Why is Social Commerce important?

Social commerce has been booming in recent years with the increase in the use of social media platforms. According to one study, the average user spends about 15% of their waking time on social platforms, with about 2 hours and 26 minutes per day across an average of 6 social media apps. 
They not only connect with friends but also use social networks to search and shop. For example, when surfing Instagram, we can see trendy and beautiful fashion products, with just one click we can "Buy Now" and make a simple transfer payment. 
The strong growth of social networks can also explain why social commerce is becoming increasingly popular. According to predictions, the global value of social commerce could reach about $2.9 trillion by 2026.

Difference between Social Commerce and E-Commerce

Although both social commerce and e-commerce operate online, they are not the same. E-commerce often takes place on branded websites or applications such as Shopee and Lazada trading floors. Tiki,... Consumers can access these sites from any device with an internet connection to shop for anything they need from fashion, and cosmetics to household appliances, electronic devices, ...
In contrast, social commerce is a part of e-commerce but takes place on social media platforms such as Facebook, Instagram, etc. With this model, customers can complete the purchase without the need to leave the social networking app. Brands can use social media marketing tools such as advertising, content, sales,... to promote sales without having to have their e-commerce site. However, online retailers with web stores can still benefit from social commerce by directing potential customers to their websites.

Featured Social Commerce Platforms in 2024

Four major social media platforms currently offer integrated social commerce tools. As social commerce continues to grow, more platforms may create virtual stores.

1. TikTok

TikTok is a video-sharing platform that has emerged in recent years but has quickly captured an important market share of social commerce. It is predicted that by 2025, TikTok will reach 48.8 million users in the United States, surpassing Instagram's user count. 
About 43% of Gen Z users start searching for products online on TikTok, instead of using e-commerce platforms because TikTok Shop is a convergence of many brands with great deals for users. Especially under the explosion of million-dollar livestream sessions of hot TikTok-ers.

2. Facebook

Facebook is the social commerce platform chosen by many marketers so far when talking about Social Commerce. About 89% of marketers use Facebook to promote retail sales on the social network. According to statistics, one-third of social commerce shoppers prefer to make purchases via Facebook, with approximately 62% of recent purchases taking place on the platform.

Brands can start social commerce on Facebook by setting up a Facebook store from their Facebook Business account. Here, brands can upload their product catalogs and offer flexible payment and shipping options. However, because of its popularity, the level of competition when selling via Facebook is also becoming increasingly fierce among retailers.

3. Instagram

Instagram, also owned by Meta, is a powerful social commerce platform used by nearly 26% of the global population. Instagram Shops allows users to buy products directly from images and videos on the app. Instagram Business accounts can create virtual stores, and showcase products through collections, shopping tags in posts, and ads. 
Instagram also offers DM shopping, allowing customers to ask questions and track their orders directly via Instagram messages.

4. Pinterest

Pinterest is a visual search platform combined with social media, where users discover new products and find creative ideas. With over 465 million monthly users, Pinterest provides a huge opportunity for merchants to reach potential customers. Nearly 97% of searches on Pinterest are non-branded but still bring in huge revenue for retailers.
We can upload product listings to Pinterest and use shoppable listings to reach customers. For example, shoe company Allbirds used Pinterest to reach customers through shoppable products.
With the continued growth of Social Commerce, businesses can leverage these platforms to expand their online presence and optimize sales. Understanding platforms and how they work can help you establish an effective social commerce strategy that will enhance your customers' shopping experience and drive revenue.