By Retail Brew Staff
less than 3 min read
Definition:
The integration of e-commerce into social media platforms to create a one-stop destination for consumers to discover and purchase products in one app. These shoppable social platforms, like Instagram and TikTok, let consumers fill their carts and check out where they doomscroll, allowing seamless in-app conversion of a consumer who was influenced by an ad or their favorite creator to buy something they probably don’t need.
Origins of social commerce
Social commerce began to gain traction around the Covid-19 pandemic, as e-commerce sales soared and homebound consumers scrolled on their phones more than ever. Instagram rolled out its in-app checkout tool in 2019, followed by the launch of its redesigned Instagram Shop in 2020 (though the Shop tab was removed in 2023, consumers can still shop on the app), while Pinterest and Snapchat also rolled out their own shoppable features. TikTok introduced TikTok Shop in the US in late 2023, and many brands have since been testing out live shopping on the platform.
US retail social commerce sales increased 26% to $71.62 billion last year, and are estimated to surpass $100 billion in 2026, per eMarketer. TikTok Shop has become the leader in the social commerce space, serving as the top contributor to social commerce growth by driving upticks in both sales and buyers in 2024.
Social commerce in context
On social commerce sites, 68% of purchases are made on impulse, per NielsenIQ. TikTok Shop is “the fastest growing beauty retailer that we’ve ever seen,” and now the eighth-ranked US beauty and health e-commerce retailer, Anna Mayo, VP of NIQ’s beauty vertical, previously told Retail Brew. And more innovation in the social selling space, including shopping capabilities through YouTube and Snap, could drive further growth, especially as the future of TikTok is still unknown, she said.
Social commerce is still in its early days, and live shopping particularly so, especially compared to China. But it’s starting to grow. TikTok, which boasts 35.8 million social buyers, has seen shopper growth rates surpassing Instagram and Facebook, per eMarketer.
