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The Advancements in Social Commerce: An Untapped Potential for Brands

social commerce

‍Imagine this scenario: You're scrolling through your phone, and you come across a post from a popular influencer wearing a t-shirt from a trending brand. Intrigued by the design, you tap the photo, a couple of taps later, and you find yourself on a product detail page on Instagram. A few seconds later, you click the purchase link, confirm the transaction with facial recognition within the app, and voilà! You've just made a socially influenced, swift, and seamless purchase.

The Hub of Social Commerce

Today, about 4.6 billion individuals, equating to 58% of the global population, are active social media users, averaging 2:27 hours per day on these platforms. Moreover, e-commerce has found its place in the mainstream, where consumers are increasingly seeking instant gratification.

This presents platforms with a significant opportunity to monetize time spent and social influence online in a digital ecosystem. It has led to the growth of peer-to-peer platforms and influencers, triggering 'Social Commerce' along with some curiosity about the metaverse.

Social Commerce Drivers

New Shopper Journeys

  • Approximately 64% of digital shoppers discover brands and/or products via social media.

  • Platforms are evolving into one-stop-shops, reducing drop-offs in the commerce journey.

Trend-Influenced Shoppers

  • One in three consumers like to discover things categorized by what's trending in their social circle.

  • Around 43% of Gen Z are looking for trending topics on social media.

Rise of Influencers

  • About 67% of Social Media users would consider a brand/product if promoted by their favorite influencer.

  • 41% of global shoppers (and 28% in Europe) want to be able to purchase directly and easily from influencers.

Emerging New Shopping Formats

  • 40% of global shoppers (and 27% in Europe) want live streaming for an immersive shopping experience.

  • 60% of global shoppers (and 50% in Europe) are interested in Augmented Reality-driven shopping experiences.

Shaping of the Metaverse

  • Approximately 69% of global shoppers (and 53% in Europe) would appreciate a brand being present in the virtual world.

  • 41% of global shoppers (and 50% in Europe) are interested in purchasing limited-edition virtual products (e.g. NFTs).

The Definition of Social Commerce

Social Commerce resides at the intersection of the evolving convergence of features on a growing number of online retail and social interaction platforms. This is driven by social-first platforms launching commerce features (e.g., social media creating in-app product catalogues) and commerce-driven sites launching social shopping elements (e.g., marketplaces launching live streaming or group buying.

The Market Platforms

Social Commerce can occur across four platform types, which differ according to a platform's commerce/social nature and level of digital immersion: Social E-commerce, Social Media Commerce, Community Commerce, and Virtual Stores.

Social E-commerce

These are both Own and traditional e-Commerce platforms that integrate social or interactive formats into the selling process.

Social Media Commerce

These are traditional Social Media platforms that integrate commerce formats into the selling process.

Community Commerce

These are interest-led platforms that enable product purchases within the community experience.

Virtual Store

These are new virtual realities that enable the selling of digital and physical products.

Market Potential

social commerce market insights

Social Commerce is estimated to reach approximately two trillion USD by 2025, growing by around 18% per year between 2021 and 2025. This equals roughly 28% (or 13% excluding China) of all online retail sales in 2025.

Types of Social Commerce

Brands can tap into this opportunity in multiple ways. Having studied various brands, we have identified a total of eight key Social Commerce features increasingly being implemented on both social media platforms and commerce sites:

  • Digital Store

  • Conversational Commerce

  • Livestream Commerce

  • Influencer Commerce

  • AR Commerce

  • Gaming Commerce

  • Group Buying

  • Mini Programs

The Opportunity for Brands

social commerce market potential

Social Commerce is not a standalone sales channel but can serve multiple purposes by creating a powerful consumer engagement ecosystem.

Five Steps for Unlocking Social Commerce Potential

social commerce

Despite its potential, today only a few brands are mastering the Social Commerce opportunity. To get started, brands typically need to:

  • Accelerate digital capabilities

  • Drive mission alignment

  • Establish a clear channel role

  • Create continuity and scale

  • Agree on a shared definition


Social Commerce is generating exciting new ways to engage and convert consumers through inspiration, interaction, discovery, and ease of purchase. Brands need to decide whether they want to be a pioneer in the space or monitor and potentially follow later.

Unlock your brand's social commerce potential with Tezda!

Excited to boost your brand with social commerce? Join Tezda today for completely free and be part of the revolution! With Tezda, you can use social media to connect with your audience, boost sales through influencer collaborations, and try out cool shopping experiences like livestream shopping and AR. Don't miss out on this chance to unlock all the benefits of social commerce for your brand. Get in touch with us to chat about how Tezda can perfectly align with your brand's goals.



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