Social commerce isn’t going anywhere

Maintaining momentum: Social commerce experienced two years of exceptional growth amid the pandemic, and while growth in the number of social buyers is slowing, the amount of social commerce sales is still rising rapidly, said our analyst Jasmine Enberg on a "Behind the Numbers" podcast.

  • Close to half of all US social network users will make at least one purchase on social media this year.
  • US retail social commerce sales will increase 63.3% between 2022 and 2024, to $86.70 billion.
  • The average social media buyer will spend around $500 on social commerce this year, which will jump to nearly $800 by 2024.

Pocket change: Despite high inflation rates, younger consumers are still buying discretionary items via social commerce.

  • According to Enberg, the top product categories across all platforms are apparel and accessories, beauty, and books.

Don’t be alarmed: Earlier this month, Instagram made headlines with the news that it was shutting its shopping page and refocusing its efforts on initiatives that drive ad revenues. Many interpreted that as a move away from social commerce, but that’s not the whole story.

  • “Instagram isn’t pivoting away from social commerce; it’s pivoting its strategy,” clarified Enberg.
  • Shopping will still be a big part of the Instagram experience, but it will likely be more integrated into the main feed.

The new normal: “Despite what you might be hearing, social commerce is not going away,” said Enberg. “But it is changing. There is going to be lots of trial and error as the platforms fine-tune their offerings, and I expect there will be more tools that are shut down and new tools that are rolled out.”

Recipe for success: Because most of social commerce’s growth will come from existing buyers, Enberg recommends that brands focus on strategies to reengage them, specifically prioritizing ads, shoppable creator content, and deals/discounts.

Listen to the full podcast.

 

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