As a consultant dedicated to helping small and medium businesses succeed, I‘ve seen social commerce transform from an emerging retail trend to a core sales channel. In 2023, no ecommerce strategy is complete without a social commerce presence.
Below I‘ll share the most important social commerce statistics you need to know this year to capitalize on this opportunity and grow your business. I‘ll also provide unique insights from my experience guiding entrepreneurs on social commerce.
The Social Commerce Market Continues Explosive Growth
- Global social commerce sales hit $492 billion in 2021, up an astonishing 35.8% from $362 billion in 2020 [1].
- The global market is forecast to grow at a 31% CAGR between 2022-2025, potentially topping $1.2 trillion by 2025 [2].
- Social commerce accounted for 10% of total ecommerce sales globally in 2021, and is projected to hit 17% by 2025 [2].
Driving this growth is rising social commerce adoption across demographics and regions:
- 69% of internet users in the US have now made a social commerce purchase, up from just 38% in 2019 [3].
- 55% of Gen Z shoppers have bought fashion products after seeing them on social media [4].
- China‘s social commerce market hit a staggering $351 billion in 2021 [1].
For small businesses, these numbers signal a huge opportunity to tap into social commerce and access a broader base of potential customers. I always advise clients to carefully test social channels first before scaling up investment. The good news is social platforms like Instagram and TikTok make it easy to experiment with minimal budget.
Consumers Now Discover Products Socially
- 90% of Instagram users say they‘ve visited a brand or made a purchase after seeing it featured on Instagram [5].
- 78% of social network users in the US discover new products on Facebook [6].
- The top social platforms used for social commerce in the US are Facebook (78%), Instagram (37%), and Pinterest (31%) [3].
People now turn to social media, not search engines, to find new products and brands. For small retailers, this shift means focusing less on SEO and more on social media content that highlights your products.
User-generated content is one of the most effective ways to organically showcase products. Hashtag campaigns that encourage customers to share photos of your products in use work incredibly well for driving discovery.
Retailers Are Boosting Social Commerce Investment
- 49% of retailers said they plan to increase investment in social commerce activities in 2024 [7].
- 81% will maintain or increase budgets for livestream shopping in 2024 [7].
While social media marketing isn‘t new, more advanced social commerce capabilities are now emerging across platforms:
- Shoppable posts allow users to complete purchases without leaving an app.
- Livestream shopping gained popularity during the pandemic as an interactive way to showcase products.
- Social AR try-on technology lets customers digitally try on products at home.
As both consumers and platforms embrace social commerce, it‘s essential for retailers to keep up with the latest features and trends. Dedicate budget for testing new capabilities as they arise to stay ahead of the competition.
Tips for Small Businesses New to Social Commerce
For entrepreneurs just getting started with social commerce, I recommend beginning with a single platform – typically Facebook or Instagram – that aligns closest with your products. Here are a few tips I share with new social commerce advertisers:
Utilize product tags – Tagging products in posts and stories makes them discoverable and shoppable for users. Use tags consistently.
Run giveaways – Contests and sweepstakes drive user engagement. Require participants to follow you and tag friends for maximum exposure.
Go live – Livestreams let you engage directly with your audience and showcase products in real-time. They also boost algorithm visibility.
Retarget engaged users – Remarketing ads help convert users who have already engaged with your content or products.
Track performance – Analyze metrics like engagement rate, website clicks and sales by source to optimize efforts.
Social commerce presents a phenomenal opportunity for brands large and small to connect with consumers and drive sales. As adoption continues to accelerate, focusing on social commerce now will help future-proof your business for the next era of retail.
Sources
[1] eMarketer[2] Accenture
[3] BigCommerce
[4] Afterpay
[5] Facebook
[6] Diffusion Group
[7] KPMG
