The Role of Social Commerce in Driving E-commerce Growth

Imagine this: you’re scrolling through TikTok, and a creator is raving about their favorite gadget. A simple click takes you to the product page, and within seconds, it’s on its way to your doorstep—all without leaving the app. That’s the power of social commerce.

If your business isn’t using social commerce yet, you’re missing a big opportunity. Social media platforms are now virtual storefronts where people can easily find products, connect with brands, and make quick, hassle-free purchases. For businesses, it’s a chance to reach numerous customers and encourage them to shop instantly.

Want to know more about social commerce and how you can use it for your business? Read on as we cover:

What social commerce is and how it has changed online shopping
The platforms you can use for social commerce
The benefits of using social commerce
Challenges you might face and strategies to overcome them
The key metrics you need to track to measure success

By the end of this article, you’ll know exactly how to use social commerce to drive sales, build brand loyalty, and stay ahead of the competition.

The basics of social commerce

Social commerce lets people buy products directly through social media platforms. Instead of clicking through multiple pages, waiting for new websites to load, filling out shipping forms, and creating yet another account just to make a purchase, you can shop right inside social media apps.

The process is simple: on Instagram, for instance, tap a tagged product in a post or story to see details and buy instantly. On TikTok, click the "Shop Now" button in videos to purchase items immediately. This streamlined creates a frictionless buying experience, making customers more likely to complete transactions.

The proof is in the numbers: brands like MAM have seen up to 108% increase in conversions after implementing social commerce. Fenty Beauty generated over $600 million in revenue within their first year using these strategies. Even luxury brands like David Yurman have found their social media sales match their website performance, showing how effective this approach can be.

Platforms to do social commerce

Major social platforms now include shopping features. Here are five platforms with proven shopping tools and engaged audiences.

Instagram

Instagram has over 2 billion active users, mainly ages 18-34. Its shoppable posts, Stories, and Instagram Shops make visual product discovery seamless. The platform excels at influencer marketing, with statistics projecting social commerce sales to reach $37.2 billion in 2024. The same statistics show that around 70% of users engage with shopping features, and 83% discover new brands through the platform, showing its power in driving purchases.

TikTok

TikTok boasts of more than 1 billion users, with a strong Gen Z base. Through TikTok Shop, live shopping, and creator partnerships, products can go viral quickly. The platform's rapid growth in social commerce is evident, projected to generate $20 billion in merchandise sales in 2024, up from $4.4 billion in 2023. With 55% of users making purchases after seeing featured products and 50% buying after watching TikTok Live sessions, it's become a powerful driver of shopping behavior.

Facebook

Facebook stands as the most popular social media platform worldwide, with 3.07 billion monthly active users—the highest among all social platforms. With more than half of users aged between 18-34, its Facebook Shops and Marketplace features have made it a social commerce leader. About 40% of users shop on the platform, with 62% of U.S. social buyers making their most recent social media purchase on Facebook. The platform's Marketplace feature is particularly successful, with 77% popularity among social buyers.

Pinterest’s stats are as follows:

It serves 537 million monthly active users, with Gen Z making up 42% of users and women aged 25-34 comprising 28.5% of the total user base.
Its Shoppable Pins turn inspiration into purchases, with 83% of weekly users buying products they discover on the platform. Additionally, users spend 40% more per month compared to other social platforms.
The platform attracts high-income users: 40% of U.S. households earning over $150,000 annually use Pinterest.
With users actively discovering new products during their average 1 hour and 49 minutes monthly platform time, it's a powerful tool for brand visibility and sales.

YouTube

YouTube connects with 2.49 billion monthly active users, making it the second most used social platform globally. Its user base is slightly male-skewed (54.4%), with the largest age group being 25-34 years (21.3%). The platform's impact on commerce is significant: 70% of users have purchased products after seeing them on YouTube, and users spend an average of 48.7 minutes daily watching content.

With its extensive reach of 2 billion users, YouTube's detailed video reviews and demonstrations make it a powerful platform for product discovery and purchases.

Benefits of social commerce for e-commerce growth

While social commerce boosts revenue, it offers many other benefits for business growth:

Social commerce lets brands talk directly with shoppers through comments, messages, and live videos. When customers can ask questions about products and get quick answers, they feel more connected to your brand than they would just shopping on a regular website.
You can see right away what customers think about your products through their comments and reactions. If lots of people love a new product, you know it's a hit. If they have questions or concerns, you can fix issues fast.
Marketing through social commerce often costs less than traditional ads. When happy customers share your products with their friends or post about items they bought, you get free advertising.
Every time someone likes, saves, or buys your products, you learn more about what they want. This helps you stock the right items and spot new trends before your competitors.
Since most people use social media on their phones, social commerce makes mobile shopping simple. Customers can buy products as soon as they see something they like, whether they're on the bus or waiting in line for coffee.

Challenges and solutions in social commerce

No innovation comes without challenges; social commerce is no different. Here’s what businesses face and how to overcome them:

Many shoppers worry about payment security and seller authenticity on social platforms. Build trust by using secure payment systems, clearly displaying customer reviews, and being transparent about your policies and product information.
Social media algorithms frequently update, affecting how your content reaches audiences. Stay adaptable by diversifying your presence across platforms and keeping your content strategy fresh and engaging.
Poor response times and support can damage your brand. Implement chatbots for 24/7 basic support, maintain an active customer service team for complex issues, and create clear processes for returns and refunds.
Stock issues and availability problems can frustrate customers. Use integrated management tools to track inventory across all platforms and consider using fulfillment services offered by social platforms to streamline operations.
Balancing promotional content with engaging posts can be challenging. Focus on creating authentic, interactive content like live streams and polls while maintaining a consistent posting schedule that keeps your audience engaged without overwhelming them.
Many businesses fail to track their social commerce performance. Monitor essential metrics like engagement rates, conversion rates, and customer acquisition costs to understand ROI and optimize your strategy.

In short, these challenges are manageable with the right strategies and tools in place.

Conclusion

Social commerce isn't just a trend. The data is clear: consumers are ready to shop where they scroll. By turning social media browsing into buying opportunities on various platforms, businesses can tap into massive audiences, drive instant sales, and build authentic customer relationships. While challenges like trust and platform changes exist, they're manageable with the right approach.

For businesses, the question isn't whether to adopt social commerce, but how quickly they can optimize their strategy. The future of shopping is already here—those who act now will lead it, while those who wait risk getting left behind.