Consider not only how consumers are shopping on each platform, but also how the platforms dictate the ways brands set up their products. The differences between platforms provide brands with the chance to experiment with strategies and determine what platforms resonate most with their consumers.
KEY PLATFORMS
As of 2022, social commerce is dominated by four platforms listed in order of market share:
- Facebook
- Instagram
- TikTok
- Pinterest
Facebook and Instagram, both owned by Meta, have been market leaders for years. Facebook’s market share is largely dependent on Marketplace, while Instagram allows consumers multiple options for making purchases, although the platform has recently begun shifting its focus to driving advertising.1 Both platforms are under pressure from the growth of TikTok, which is investing heavily into shopping and advertising.1
TikTok users are younger, browse more, have a higher purchasing frequency, and spend more time on the platform than users of other “traditional” social media platforms.4 In addition, Tik Tok has a powerful ability to drive virality and off platform purchases, with many users tagging their purchases #TikTokMadeMeBuyIt.4
Pinterest is another platform investing heavily in social commerce. In addition to its existing shopping offerings, the platform has been developing a native checkout option to make it easier for consumers to shop and is also exploring augmented reality and live shopping.5
Other social media platforms, like Snapchat and Twitter, as well as platforms with extensive social features, like YouTube, are testing social commerce features.
A GROWING SUBSET OF ECOMMERCE
The entire US social commerce market has roughly doubled since 2020.1 In 2022, social commerce is on track to account for a little more than 5%, or about $53 billion, of all US retail eCommerce sales.1 Furthermore, according to eMarketer, social commerce sales are projected to grow four times faster than total eCommerce sales.1 The rapid growth is attributed to the market’s relative newness compared to traditional eCommerce, the rise of TikTok, and increased spending by existing social commerce consumers.1
By 2025, social commerce is expected to exceed $100 billion in sales, make up 7% of all US eCommerce sales, and an estimated 52% of all US social network users, or more than 114 million consumers, will have made a purchase on a social network.1 Given this steady but sure growth, there is ample opportunity for consumer brands to take the time now to explore and experiment with social commerce.
SOURCES
- Engberg, Jasmine. (2022, September 12). “Social Commerce Forecast 2022”. eMarketer. https://content-na1.emarketer.com/social-commerce-forecast-2022
- (June 2022). “Retail Ecommerce Sales: US, 2022-2026”. https://forecasts-na1.emarketer.com/584b26021403070290f93a2d/5851918a0626310a2c186abb
- “Shops on Facebook and Instagram.” Meta. https://www.facebook.com/business/shops
- Engberg, Jasmine. (2022, March 30). “TikTok Commerce 2022”. eMarketer. https://content-na1.emarketer.com/tiktok-commerce-2022
- Engberg, Jasmine. (2022, July 18). “Pinterest’s head of shopping product marketing talks social commerce ambitions”. https://content-na1.emarketer.com/pinterest-s-head-of-shopping-product-marketing-talks-social-commerce-ambitions
