8 Key Statistics Every Marketer Should Know about Social Commerce
Social Commerce is rapidly becoming a dominant force in the e-commerce landscape, with remarkable growth projected in the coming years. As a marketer or CX professional at a retailer, brand or media outlet, implementing this trend is crucial for staying competitive and meeting customer demands. To get ahead, you need to focus on giving your audiences the interactive and entertainment-driven shopping experiences on your website that your customers are seeking. In this article, we'll explore key statistics and insights about social commerce, including its definition, popular formats, and the growing significance of live shopping experiences.
- Global Growth and Market Size: By 2025, social commerce will make up 16,7% of all c-commerce - Accenture
- Explosive Growth of Social Commerce: Social commerce shall grow 31% year-on-year globally for the next 7 years. - Statista
- Global social commerce sales are expected to reach $947 BN in 2023. - Statista
If you are responsible for Marketing or CX at a retailer, brand or media outlet – and your teams aren’t talking and prepping to meet the already existing demand by customers for more interaction- discovery- and entertainment-driven experiences on your platform - your chances to get cracking on it successfully are dwindling by the day.
But, what exactly is Social Commerce?
DEFINITION: Social commerce includes any digital experience where people interact with one another socially and products can be purchased seamlessly out of the respective content format.
Based on this, social commerce includes a long list of social commerce formats, such as:
- Interactive livestream shopping
- Shoppable video content
- In-game shopping
- Metaverse shopping...
These experiences could be happening on or across any number of platforms (e.g. on social media, on a brand’s webshop, or an online blog)—as long as the path-to-purchase is seamless for the viewer.
- Power of Live Shopping: Live Shopping sales to reach $𝟮𝟱 BN in USA in 2023. - Coresight Research
- Conversion Rates of Live Shopping tend to be up 10x higher than those of regular e-commerce. - Coresight Research
- Customer Preference for Live Shopping: 82% of consumers say they’re more likely to buy a product if they could ask questions and get immediate answers during a live video shopping experience. - Salesforce
When it comes to social commerce, livestream shopping reigns supreme as the largest and most influential format. With impressive conversion rates of up to 37%, it's no wonder that customers are captivated by its unique ability to inspire and facilitate well-informed purchase decisions. However, the key to its success lies in its emphasis on authenticity, as customers prioritize this factor above all else when building trust.
- Authenticity and Trust: In Europe, 𝟱𝟵% of live shoppers prefer an experience hosted directly by their favorite brands. - Arvato
When it comes to live shopping events, trust plays a pivotal role in shaping consumer preferences. Customers show a clear preference for joining events hosted directly by familiar brands and retailers rather than those organized by lesser-known creators on social media. Establishing a familiar and reliable environment for customers is key to success.
- Prevalence of Brands' Own E-commerce Platforms: In Europe, 70% of live shopping events are already happening on brands’ own e-commerce platforms. - Arvato
The era of social commerce has arrived, reshaping the way customers interact and make purchasing decisions. From interactive livestream shopping to the growing preference for authentic experiences, businesses must adapt to meet customer demands for dynamic, discovery-driven shopping encounters. At LiSA, we lead the way in crafting winning strategies that elevate brands to new heights in the world of social video commerce. Reach out to our LiSA experts today to unlock the potential of shoppable videos, live streaming apps, and the full spectrum of social video commerce possibilities.