Social Commerce Series: Navigating the $1.2 Trillion Revolution That Is Changing How We Shop

Social commerce has exploded in popularity globally the last few years. Last year, global social commerce sales reached $492 billion. In just two more years, that spend will triple to $1.2 trillion. According to eMarketer, 1 in 6 (or 17%) of all ecommerce sales will occur within a social channel. In the U.S. alone, there are now 106.8 million social buyers currently. Like, right now.

That’s creating a huge opportunity for brands as they look to drive more sales and reach new, younger audiences in the places where they are spending the most time engaging.

While this is an exciting time (dozens of new shoppable features are being launched monthly at this point), it’s become increasingly hard for brands to navigate this shifting social commerce landscape. This leads many brands to ask questions like:

• Is social commerce right for my brand and products?
• What channels should I have a shop on?
• What investment do I need to maintain a shop?
• Should this change my social strategy across paid and organic?

At Razorfish, we launched an end-to-end social service offering designed to help brands figure out if social commerce is right for them—and create radically relevant social commerce experiences that inspire product discovery, drive revenue, and enable a deeper view of the consumer.

But enough about us. First things first:

What is social commerce?

Social commerce is the process of selling products directly on social media platforms or within social-first commerce marketplaces. With social platforms like Instagram or TikTok, for example, this means the entire shopping experience—from product discovery to checkout—can take place seamlessly all within the channel itself. Sometimes without consumers ever having to visit your website. With social-first commerce marketplaces—like FLIP, Klarna, or Amazon Live and Inspire—that might mean selling your products directly through a creator or influencer from within their storefront.

We like to think of social commerce as simply an evolution of how consumers shop—meeting them where they are already spending the most time with a relevant, convenient (sometimes spontaneous) shopping experience.

What’s driving this crazy growth in social commerce?

1. People are spending more time on social channels than ever before.
   In 2024, social media users have increased to 5.17 billion—that’s 63.7% of the world's population. Time spent using social media globally grew 1.4% from last year to an average of 2 hours and 24 minutes in daily use, leaving 35% of people’s total time using the internet now spent on social media. In the U.S. 51% of Gen Zers spend 4.8 hours daily on social media. This means how people are using social channels is also changing. Today, more people turn to TikTok and Instagram before doing a traditional Google search.
2. Mobile wallets are making buying on social quick and easy.
   Nearly 80% of Gen Z consumers use digital wallets. And frictionless payment options like Apple Pay, Google Pay, Samsung Pay, and PayPal have streamlined the checkout process. Additionally, new payment models are giving rise to more spontaneous purchases. More flexible payment methods, like Buy Now Pay Later options, means more shoppers can afford to make more frequent and higher value purchases. For example, in the U.S., forecasters predict BNPL's total payment value will reach $80.77 billion in 2024—with more than half of that growth coming from Gen Zers
3. Influencers are the new storefronts.
   Today, 63% of shoppers say they’re more likely to buy a product if it’s recommended to them by a social media influencer they trust. And nearly half of those shoppers have purchased a product they saw featured in creator-generated or influencer content on an entertainment app or social media platform. This is why all the major social platforms and marketplaces have now launched both branded and creator shops (smart, right?), allowing consumers the freedom to buy from anyone wherever their feed takes them.

All of these drivers have sparked a new consumer expectation: People expect brands and products to be shoppable. No matter what. Below is a look at some of the major social commerce players today, showing just how vast the landscape has become.

Here are three things to keep in mind when thinking about your target audiences and social commerce:

1. People prefer convenience when they shop.
   Research shows that 82% of what people like most about social shopping is how quick and easy it is. And 71% of people say they would rather complete a transaction on social after seeing a piece of content than exit the app to then go to a retail site source.
2. They like being inspired by new products every day.
   Today, 60% of Instagram users say they’ve discovered at least one new product on the platform—while 55% of Gen Zers say they have bought a product after seeing it on social.
3. They want validation from their community.
   How people find new products on social is largely from seeing a creator, influencer or friend purchase it. For example, 49% of all consumers make daily, weekly, or monthly purchases because of influencer posts, with 30% trusting influencers more today than they did just six months ago.

Traditional commerce and ecommerce is typically a more calculated, self-prompted, multistep process. With social commerce, there’s spontaneity. It allows you to be inspired by a product in the moment, with more impulse and freedom to purchase while never leaving the experience you’re in—so you can move on and continue to scroll through your friends’ posts without thinking twice about the miracle eye cream you just bought for $50. (Guilty!)

Over the next several weeks, we’ll share more posts on social commerce that aim to help brands navigate the state of social commerce today—what’s changing and what’s ahead.