Is social commerce the missing link in your sales strategy, or should you not waste your time on it? To get to grips with this question, you need to understand exactly what social commerce is, what it can do for your organisation, what it can’t do, and whether it fits with how your business operates. Given the speed of its growth, it’s a question you need to resolve quickly.
In the last two years alone, the number of products purchased through social commerce has risen exponentially. Last year, Bizrate Insights found that 35 per cent of US-based digital buyers aged 18–34 purchased on Instagram, 36 per cent on Facebook, and 31 per cent on TikTok. Accenture recently conducted a study that predicted that social commerce would grow three times faster than traditional e-commerce. Meanwhile, another study projected that social commerce has the potential to reach USD 2 trillion globally by the end of 2025. It’s big business.
While the momentum is at a global level, regional competitors are moving fast as well. From local fashion startups in the Middle East running live TikTok campaigns, to beauty salons and event planners, businesses are embracing the shift.
While social media may have started as a place for sharing photos and updates, today it is one of the fastest-growing commerce channels in the world. It’s unique in that it can create a frictionless journey (you don’t need to leave the app) that takes the consumer from discovery to checkout. For customers, it offers a more intuitive and engaging shopping experience.
But is social commerce right for every business? And if so, how should you approach it? In this article, let’s look at who this trend really applies to, discuss why it matters, and how you can go about building a strategy that delivers results.
What is social commerce?
If we start by defining e-commerce as buying and selling online across websites, marketplaces and apps, then social commerce is a kind of sub-division of e-commerce which refers specifically to selling directly through social media platforms.
Let’s look at some examples. Imagine a retailer that utilises Instagram Shopping (introduced in 2020) and can now streamline their sales by tagging products directly in posts. Their customers can purchase without even leaving the platform. Or perhaps a brand uses TikTok Shop (started in 2023) to drive conversions through livestreams where viewers can make purchases as they watch. This kind of social commerce lends itself to fashion, beauty, food and other visually appealing products. But even in B2B, where purchases don’t tend to be impulsive, it can also play a role in easing the route between discovery and transaction.
So whether it’s law firms, accounting practices, HR consultancies, or financial advisory firms, a number of different companies are using LinkedIn’s native lead gen forms and content ads to convert interest directly into consultations. Meanwhile, SaaS providers use targeted Instagram Reels to showcase product features which leads traffic towards booking a trial.
This integration of two things – shopping and social interaction – is far more than just a convenience. It signifies a cultural shift in how purchases are made and how brands and customers connect.
Who should be using social commerce?
It’s true that not every business will thrive on social commerce, but for many, it can be a game-changer. Let’s break down the types of business that will most likely benefit:
- If your products are visually appealing: We know that social commerce is all about the visuals, so it’s not surprising that industries including fashion, beauty, food, and home decor thrive in this environment. It’s remarkable how a well-styled photo or video showcasing a product can drive conversions.
- If you target younger demographics: TikTok and Instagram are influential with Gen Z and millennials. These demographics are already used to finding and buying through social feeds.
- If you want to avoid e-commerce costs: One thing that social commerce does very well is level the playing field. So even a small boutique can create a storefront on Instagram or TikTok Shop and reach customers without the overheads of a full e-commerce website.
- If your brand has a strong community: If your brand already has a lot of loyal followers or influencer collaborations, then social commerce just amplifies that relationship even further. If a follower sees a product endorsed by someone they trust, then they are more likely to make an easy in-app purchase.
- If you’re in a highly competitive market: Some industries are so crowded that any way to reduce friction is vital. If your customer needs to leave the app, open a browser and create an account all before checking out, then you may lose them. Social commerce removes those barriers.
How to execute social commerce effectively
Clearly, getting ahead in social commerce means a bit more than just uploading a product catalogue. It requires a step back to think through the right approach – one that blends authenticity with creativity. After all, your strategy should aim to build genuine connections and drive the kind of results that you can measure. So, businesses that do well here are those that have taken the time to understand their audience and genuinely treat social platforms as an extension of their sales channels.
So where do you start? The first step is to choose the right platforms – TikTok is ideal for discovery-driven content, Instagram is perfect for visual storytelling and influencer collaborations, and don’t forget Facebook, which still holds enormous buying power among older demographics. You will need to adapt your strategy depending on the platform, but don’t spread your resources too thin. It’s better to determine where your audience spends the most time and focus your efforts there.
The next step is to design your social storefront. That means great product images, strong descriptions, and accurate pricing. It should go without saying that a smooth checkout process is a must – that’s the whole point of doing social commerce in the first place.
In terms of content, consider short-form video, live streams, demos, tutorials – anything that makes the products feel more tangible. And you may want to use an influencer – they don’t always have to be the biggest names, but their authenticity has the potential to help you engage with niche audiences you want to target.
Ultimately, just like social media in general, it’s not a one-way street. It’s a two-way dialogue, so ensure you’re still encouraging interaction rather than focusing solely on transactions. It’s important to respond to comments and highlight user-generated content – all of this helps build community and deepen trust.
Finally, keep in mind that social commerce is constantly changing, so experimentation is essential. Pair this with consistent measurement, and you create a feedback loop that strengthens both social commerce efforts and your broader marketing strategy. The most relevant metrics are conversion rate, average order value, cost per acquisition, and engagement-to-purchase ratios. These are the ones to keep an eye on, alongside customer retention rates from social platforms.
A few warnings, though. Over-selling can alienate your audiences, so you need to balance promotional content with genuinely useful material – whether that’s informing or entertaining. Strong customer service is also vital, while understanding the specific regulations each platform has will help ensure you stay compliant. Finally, think about platform dependency. Very quickly social algorithms can shift and massively impact your reach and sales, plus it’s not easy to transfer audiences elsewhere. Understanding this risk means businesses should consider diversifying their sales and communication channels.
Why this matters
This enormous shift towards social commerce is more than just convenience. It demonstrates just how much consumer expectations are changing. Today, buyers demand a frictionless experience and want to discover and purchase in a single click. They are looking for authenticity and trust and increasingly rely on peer recommendations and influencer endorsements.
For businesses, this means social commerce is more than just another sales channel. It offers an opportunity to embed commerce within your social media strategy and meet customers where they are. Businesses that dismiss social commerce risk missing out on one of the most dynamic shifts in consumer behaviour in the last ten years.
By Zain Mir, Head of Performance and SEO at creo Global
