Why Social Shopping Could be the Future of E-Commerce [Top Trends & Data from 500+ Social Commerce Pros]

Download Now: The 2023 State of Social Media Trends [Free Report]

Have you ever gone on social media with the intent of scrolling for entertainment, but left the app with a new purchase?

When I scroll through my TikTok For You page, I come across videos with products that pique my interest, not realizing that the button for me to purchase that item is right above the caption. As a consumer, I love how effortless shopping can now be. But what about businesses — what do they think about social commerce?

To help brands navigate social commerce features and determine if they fit into their strategy, I surveyed 512 social media marketers who leverage social commerce tools like active community engagement and user-generated content to learn if they’ve provided ROI. Here’s what I discovered:

General Trends of Social Selling

Social commerce is a growing channel for both buyers and sellers.

As seen in our Consumer Trends survey, social media is the future of shopping. Within Gen Z, Millennials, and Gen X, social media is the preferred channel for product discovery. Among all consumers, there is a growing number of social media users who buy on social media.

In this survey, 87% of sellers say that social selling has been effective for their business this year. 59% say their company is making more sales through social media this year when compared to last year. Some marketers who sell on multiple channels felt that social media is the best at targeting potential customers and provides one of the best ROI.

Precise audience targeting is a key benefit, in ways beyond advertising.

Over 50% of social sellers mentioned audience reach when asked about the benefits of social selling. They also say that the ability to advertise to your target audience is the most important feature a platform should have, as you can reach markets that would otherwise be untapped.

Paid ads are often the first thought when it comes to targeted advertising. But luckily, social media has more than that. Brands can reach their targeted audience through other pull marketing methods, such as the following:

UGC: Creators reach a community of people who share similar interests to the creator and would likely be part of the brand’s target audience.
Word-of-mouth marketing: One-click sharing on social media makes WOM easier, also reaching people with similar interests.
Active community engagement: Posts with high engagement tend to land on discovery pages, which are tailored to users based on their interests.

Social sellers still diversify where they sell.

Social selling is not seen as a replacement for other channels, but rather, as a complementary channel. 94% of social sellers also sell on another digital channel, such as their own website or a third-party online marketplace.

This is likely because social shops can easily be integrated from e-Commerce websites and connected to third-party online marketplaces. The ease of implementation and high returns of social shops makes it a worthwhile investment.