Social media as a tool for e-commerce is experiencing a rapid rise in popularity. In 2024, the penetration rate of social shopping is expected to reach nearly 25 percent, with further growth anticipated in subsequent years. As a result, social commerce revenues are forecast to skyrocket, surpassing one trillion U.S. dollars by 2028, up from over 570 billion in 2023. Asian markets are particularly enthusiastic about social shopping, with approximately nine out of ten online consumers in Thailand and China actively participating as social buyers.
From inspiration to conversion
Before actual shopping, social media is a powerful source of inspiration and discovery for consumers. According to a 2023 survey, these platforms helped six in ten social media users to find new products and brands. When it comes to making purchases, more than a quarter of global shoppers named Facebook their favorite social commerce platform in 2023, followed by Instagram with 20 percent of respondents. Owned by parent company Meta, the two platforms also top the list of social networks offering the best social commerce experience. Regarding buying preferences, the most purchased product categories on social networks across the globe are apparel, personal care, grocery, and food.The ins and outs of social media shopping
Social commerce has gained traction across all age groups, with younger consumers exhibiting more prominent usage. Gen Z, having grown up in the digital age and feeling comfortable with technology, and millennials, possessing financial independence to indulge themselves, are more prone to social media shopping.However, both demographics exhibit a common desire for entertainment and reliability, prioritizing the shopping experience beyond mere transactions. This inclination makes them especially receptive to content creators' recommendations and prime purchasers of products endorsed by influencers and celebrities. So, what factors could incentivize online buyers to embrace social shopping more enthusiastically? A 2023 study revealed that promotions and streamlined purchase processes are key catalysts for increased social commerce.
