Creating and executing successful online marketing campaigns has become impossible without the use of social media platforms. Social commerce definition puts sites like Facebook, Instagram, and Twitter at the centre of product promotion. Proper utilisation of these tools gives marketers a more convenient way to find and reach their target audience successfully.
This article will provide an in-depth overview of the latest social commerce statistics. One of its goals is to help you create successful marketing campaigns and grow your sales and revenue in the process. Read on to learn more about advertising and selling your products on social media.
Top Social Commerce Trends (Editor’s Choice)
- The global social commerce market will be worth US$604.5 billion by 2027.
- 81% of business-to-business (B2B) marketers use LinkedIn to close sales.
- 52% of customers worldwide say social media has influenced their shopping decisions.
- 30% of online shoppers would buy products through social media.
- 70% of teenagers trust YouTube influencers more than traditional celebrities.
- With a revenue of US$570 billion in 2020, China is the largest social commerce market.
- China had 713 million social commerce users in 2019 — 51% of its total population.
Social Commerce Stats for Marketers
In this first section, we’ll look at some general facts regarding the use of social media for business purposes. We’ll examine the current state of the social commerce market and take a closer look at how marketers are using social media to reach their target audience.
1. The global social commerce market will be worth US$604.5 billion by 2027.
Amidst the COVID-19 pandemic, the global social market was valued at US$89.4 billion in 2020. However, the social commerce market size is expected to grow at an annual rate of 31.4% in the coming years and reach US$604.5 billion by 2027 — more than six times its current worth.
2. The US social commerce market value should reach US$84.2 billion by 2024.
Along with the global, the US social commerce market will also continue growing in the next few years. After hitting US$29.3 billion in 2020 — a relatively small year-over-year increase from US$22 billion in 2019 — the market’s value is projected to reach US$84.2 billion by 2024.
3. 25% of ecommerce companies plan to sell directly through social media.
One of the trends in social commerce is more and more ecommerce companies selling their products on social media. According to a 2019 survey, 25% of online retailers planned to enter social commerce in 2020, while 15% of the surveyed companies were already involved in it. On the other hand, 39% of companies expressed no interest in turning to social commerce, but the optimistic market projections might make them revise their plans.
4. Social selling will help establish the dominance of ecommerce, statistics reveal.
Despite the growing popularity of ecommerce and social media, physical stores still sell up to 20% more than online platforms. However, thanks to the combination of social commerce, personalised marketing, and convenient delivery, that’s about to change. Recent projections say that 53% of all sales will occur on the internet by 2030, causing a significant shift in the market.
5. Most business-to-consumer (B2C) marketers use Facebook to reach customers.
(Social Media Examiner)
According to a recent report, a staggering 96% of marketers use Facebook to reach their target audience and boost their sales. Many of them also focus their efforts on predominantly visual social commerce platforms — 82% use Instagram, 53% use YouTube, and 28% use Pinterest.
6. More than 80% of business-to-business (B2B) marketers use LinkedIn.
(Social Media Examiner)
While 91% of B2B marketers use Facebook, making it the most popular social media platform, it’s interesting to note that 81% also use LinkedIn. Instagram is in third place, with 71% of B2B marketers saying they used it to conduct business in 2020.
7. TikTok is the next social media platform marketers want to conquer.
(Social Media Examiner)
The global pandemic and the related lockdowns may have made 2020 a bleak year for most, but not for TikTok. This social commerce platform saw unprecedented growth in popularity throughout the year, and marketers have taken note. Nearly 5% of B2C marketers and 4% of B2B marketers say they used it for business in 2020. Additionally, 16% of marketers plan to increase their use of TikTok for marketing and sales in 2021.
8. Facebook is still the best place for conducting social commerce.
(Statista, Business Insider)
With 2.7 billion active monthly users and counting, Facebook is still the leading social media platform and is significantly contributing to the rise of social commerce. On that note, Facebook recently introduced Facebook Shops, a feature aimed at sellers that’s supposed to position the platform as a competitor to ecommerce giants like Amazon and eBay. The company also owns Instagram, making it an undisputed leader among all social commerce sites.
Customer Habits and Social Commerce Statistics
This section will look at some crucial stats on customer habits regarding social media. We’ll find out how social media influences customers’ purchasing choices, examine who uses social media the most, and see how interested they are in buying through social media.
9. 90.4% of US millennials use social media every month.
Millennials are the most frequent social media users, with 90.4% saying they use social media at least once a month. They are the population that will hold the most capital in the years to come, and social media is where marketers can most easily find them and interact with them.
10. According to online purchase statistics, 87% of online shoppers use social media while making shopping decisions.
(Social Media Today)
Even if they haven’t yet bought anything directly through social media, 87% of online buyers say they use social media to decide what to purchase. They search through brand pages to learn more about specific products and services, and the information they gather influences their shopping choices.
11. More than 50% of young people in the US buy clothes they see on social media.
A 2019 survey revealed that 55.2% of Gen-Z youths (aged 14–24) and 50.6% of millennials (aged 25–34) had recently bought clothes they first saw on social media. Social commerce companies specialising in fashion can utilise these findings to tailor their advertising campaigns and use social media to their advantage.
12. 52% of customers worldwide say social media has influenced their shopping decisions.
Social media has the biggest influence in Indonesia, where 83% of shoppers say they’ve made purchasing choices based on what they read on platforms they use. The top five also includes India (76%), Egypt (75%), Turkey (69%), and China (68%).
13. 30% of online shoppers would buy products from a social commerce company.
Approximately 500 million online consumers who use social media expressed interest in buying something directly through their chosen platform. They cited Instagram, Pinterest, and Twitter as their preferred social media sites for this. Additionally, more than 383 million (23%) consumers said social media recommendations significantly impact their buying decisions.
Influencer Marketing and Online Shopping Statistics
Social media has given rise to a new type of celebrity marketers — influencers. They are social media users with a large following (at least 10,000 users) who have the power to shape other people’s opinions. Their role in social commerce is crucial, as you’ll learn in this section.
14. 49% of people listen to influencers when buying a product.
(Influencer Orchestration Network)
Nearly 1 in 2 social media users will listen to influencers when deciding on their next purchase. What’s more, 40% say they’ve bought a product after an influencer featured it in one of their posts, further illustrating the impact of influencers on social commerce trends.
Interestingly, 56% of users say they primarily trust their friends’ recommendations, meaning that influencers have almost as much impact on people’s purchasing decisions as their close friends.
15. 70% of teenagers trust YouTube influencers more than traditional celebrities.
(Think with Google, Entrepreneur)
In a survey commissioned by Google, 70% of teens said they relate to YouTube influencers more than traditional celebrities. Influencers have a lot of power over millennials, too. Namely, 60% of them said they believe influencers understand them better than people in their lives.
Of all YouTube users, 60% said they would buy a product solely based on their favourite influencer’s recommendation. This is one of the most valuable social commerce facts for sellers, especially now that the site is rolling out YouTube Shopping, its own social selling platform.
16. 14% of social media users hear about new brands from online celebrities.
Rather than posting their own content, 20% of people use social media solely to follow their favourite celebrities. Of these users, 14% discover new products and brands thanks to these celebrities’ endorsements. Another 14% learn about them from product reviews celebrities post.
A recent report on social commerce trends in 2020 found that 23% of social media users would buy influencer-promoted products if the posts they’re featured in have lots of positive comments and likes. Additionally, 13% would be more likely to purchase these products if there was a Buy button in the social app, further demonstrating consumers’ interest in social commerce.
Social Commerce Trends in China
The most populous country in the world is also the one with most internet users. With 854 million internet users and over US$1.5 trillion in revenue in 2019, China is the world’s largest ecommerce market. Social commerce is developing fast, too, as you’ll learn in this section.
17. The social commerce market in China exceeded US$570 billion in 2020.
As a result of the COVID-19 pandemic and nationwide lockdowns, China’s social commerce sales have experienced an unprecedented rise in 2020. The social commerce revenue was estimated at CN¥3.7 trillion (about US$570 billion), a staggering 66.5% increase from CN¥2.2 trillion (US$343 billion) just a year before. Compared to CN¥95 billion (US$14 billion) in 2014, the country’s social commerce market has grown by 190% in the six years since.
18. China had 713 million social commerce users in 2019.
The number of social shoppers in China increased by 17.3% from 608 million in 2018, when the year-over-year growth was 28.5%. While these percentages might suggest that the country’s social shopping market is experiencing a decreasing trend, that’s not the case. According to social commerce statistics, the market is still booming. Its size may be nearing its peak, but with 51% of the country’s population using social commerce, it’s still the world’s largest market.
19. Social media purchases account for 11.6% of all online purchases in China.
The revenue generated from purchases made directly through social media accounted for 11.6% of China’s total ecommerce revenue in 2020. Social commerce market’s share in the country’s online retail market is projected to grow in the next few years, eventually reaching 14.2% by 2023. This growth is mainly spurred by WeChat, a Chinese social media platform with 1.2 billion active monthly users as of Q3 of 2020.
20. According to social commerce statistics, there are 2.3 million WeChat Mini Programs.
Back in 2017, WeChat launched Mini Programs, an app-within-an-app feature that allows brands to advertise and sell directly to consumers. Users only have to find a brand they like and link their WeChat account to the brand’s Mini Program to start interacting with it. There are currently more than 2.3 million Mini Programs and approximately 350 million daily active users and potential shoppers whose accounts are linked to at least one of them.
21. 95% of ecommerce brands have created Mini Programs.
(TONG Digital, Business Insider)
WeChat’s Mini Programs are among the best social commerce examples out there as they allow brands to engage directly with consumers. So far, 95% of ecommerce brands active in China have developed their Mini Programs in the form of games, blogs, and online commerce apps.
Relatively few of them give users the option to purchase products without leaving the app. However, that’s likely to change as WeChat’s mobile payment gateway WeChat Pay continues growing its user base. According to 2019 statistics, 900 million people in China currently use it as their go-to payment method. It already comes integrated with Mini Programs, meaning brands can charge consumers for their products and services directly within the app.
Social Commerce Statistics and Projections: Final Thoughts
As you can gather from this overview, social commerce is still in its early days. With more and more people relying on social media platforms and valuing convenience above all, selling via social apps is the logical next step for every brand looking to stay afloat in today’s tough market.
Most social platforms are now introducing their own direct sales platforms, allowing brands to enter the social selling game with minimum investments. All they need are creatively designed online marketing campaigns — and maybe an influencer or two to help them attract customers.
What are social media stats?
Before you enter the social commerce market, you need to become familiar with the landscape you’ll be operating in. Social media platforms currently have more than 3.5 billion active users worldwide, with Facebook still on top. What’s more, 54% of people use social media to research products, and 30% say they would be willing to buy an item directly through an app. Social apps are also excellent for reaching young buyers, as 90.4% of millennials use at least one of them.
How is ecommerce related to social commerce?
Social commerce is a subtype of ecommerce. Whereas ecommerce takes place on specialised websites, social commerce takes this entire process of buying and selling goods online and moves it to the social media landscape. With social commerce, merchants can sell their products and services directly through social media. At the same time, consumers can buy anything they see on their favourite social media app without leaving it or using external sites.
What is the social commerce zone?
(University of Minnesota)
The term “social commerce zone” refers to the use of social media to advertise and sell products online. This area of the market provides customers with interactive and personalised shopping experiences. They can interact with the brand and its customer support, rate and review products they’ve bought, and read what other customers have written about them.
What types of social commerce are there?
When talking about social commerce, marketers mostly refer to selling and buying goods via social media apps. However, this term has a much broader meaning and encompasses many different ways businesses can use social media for advertising and selling their products.
For example, sites like Groupon are considered social commerce platforms for their social component — users can buy items at a discount, but only if they team up with other site users.
Social commerce also includes selling via websites with social features (e.g., live chat and user reviews), peer-to-peer selling through sites like eBay where the seller and the buyer can talk to each other directly, and ecommerce purchases made through links posted on social media.
How will social commerce impact businesses?
According to current trends and projections, this way of selling goods will benefit businesses in many ways. First of all, social media will keep attracting new users, giving marketers access to a broader audience. Social media commerce also increases website traffic, creates more organic engagement, and improves customer retention and loyalty. Finally, this type of selling provides marketers with valuable metrics and insights for future marketing campaigns.
What are the disadvantages of social marketing?
While there are many benefits to social marketing, there are also some downsides. For example, every negative review dissatisfied customers leave is public and may harm the business. Next, companies need to invest in social media advertising, which might not be in their budget plan. Finally, managing a brand’s social media accounts needs to be done by an experienced professional, which means more money out of the owner’s pocket.
What is a social commerce manager?
Social commerce manager typically refers to the person in charge of a brand’s social marketing endeavours. You need to hire an expert for this position, as the quality of your social media presence can make or break your business in today’s social media-driven world.
Commerce Manager is also the name of Facebook’s platform that allows brands to create and manage their online stores on Facebook and Instagram and sell directly through these sites. As our social commerce statistics have shown, these are two of the most popular platforms out there with billions of active users. With so many potential customers, setting up your store on these websites would be a smart move that would give you a head-start in social commerce.
- Business Insider
- Business Insider
- China Internet Watch
- Influencer Orchestration Network
- Internet Retailing
- Social Media Examiner
- Social Media Today
- Think with Google
- TONG Digital
- University of Minnesota