How Social Commerce Is Evolving and Impacting Retail

Social commerce is the marketing, selling, and purchasing of products directly through social media platforms. While still in its early days in the United States, social commerce in China has become a retail powerhouse — generating $400 billion in sales in 2021 and is expected to become a mainstay for global online shopping, forecasted to hit $1.2 trillion in revenue by 2025, reports Accenture. In the US, it’s predicted to reach $80 billion by 2025.

Social commerce combines the experience of social media, connection, and shopping all within the favorite apps that shoppers spend significant time on each day. This streamlines the shopping experience right from the convenience of the user’s device without having to click away in the buying process. It is a powerful trend within eCommerce and retail — one that eCommerce retailers need to participate in to stay relevant.

Traditional eCommerce takes place via a brand’s eCommerce site or branded app. While paid social ads may entice social media shoppers to click on the ad, it will then take them to that online retailer’s owned digital properties to complete the sale. Social commerce happens entirely within a social media platform, often through live streaming events, live shopping, influencer’s posts, or the brand’s own social account that offers a buy button in its posts.

In addition to mega brands, the social commerce market is filled with small businesses and entrepreneurs that create a close-knit community of followers and provide highly personalized service, interactions, and experiences. Potential customers are exposed to a much broader array of innovative new products than is often seen in traditional eCommerce. Additionally, social posts have the capacity to go viral, meaning that a product or offer can very quickly reach millions of potential customers.

Social commerce engages customers through individuals, influencers, and brands. It’s popularity tends to be driven by:

Outside of China’s social platforms, four major social media platforms offer native social commerce functionality:

Other social networks, like Snapchat, have or are developing a social commerce strategy to take part in this growing movement.

Adding social commerce to an eCommerce retail strategy has multiple benefits:

With social commerce becoming a dominant force in eCommerce, retailers need to develop a social commerce strategy that will harness the power of this new channel. Social selling is expected to become a mainstay in online shopping, and no doubt will become part of a blended, omnichannel experience.

Here are ways retailers can engage in social commerce:

Social commerce is shaping retail in new ways. To be successful at social commerce, brands need a fast, accurate, and convenient order fulfillment process. This may include traditional fulfillment or dropshipping that makes sure that customers that buy within social platforms have a smooth checkout, order processing, fulfillment, delivery, and returns experience.

Radial offers brands the support they need for social commerce experiences by providing order fulfillment solutions that focus on an exceptional customer experience.

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