What is Social Commerce? Definition, Examples, Best Platforms

If you ask your co-workers “What is social commerce?”, most of them will probably tell you that it is the selling of products and/or services on social media.

However, I’m sorry to say that – while this “What is social commerce?” The most common response to Out there, it doesn’t accurately represent what social commerce really is.

You see, social commerce is not just about selling. It is revolutionizing e-commerce as we know it.

This experience includes many far-reaching touchpoints, which are now driving social commerce to grow three times faster than traditional e-commerce. , This adds up to $1.3 trillion in annual sales revenue and is expected to grow to $2.9 trillion by 2026.

I say now is the time for you to get in on the action.

We’ve also included social commerce examples also social commerce platforms that you would like to try.

What is social commerce?

Social commerce is promoting, distributing, buying, and selling goods/services on social media channels. It covers the entire sales journey of a buyer on social media – from brand discovery and product research to engagement and conversion.

It is one of the many business strategies that make up the larger e-commerce spectrum. While traditional e-commerce includes all types of online shopping experiences, social commerce defines the sales funnel as it takes place on social media.

Case in point – remember the last time you stumbled upon a fancy Instagram or Facebook shop?

The simple act of finding that page kickstarted your social commerce journey. And from there, you proceeded to explore the various products on offer before possibly clicking “Buy” to make a purchase.

Social commerce has become so widespread that more than 30% of web users in the US are now shopping directly within social media platforms. ,

This trend is especially popular among younger consumers like Millennials and Gen Xers, as 77% of them are already buying stuff directly on social media. ,

Best Social Commerce Examples

Small to large businesses are selling heavily using a wide range of social commerce touchpoints.

These six social commerce examples summarize some of their most popular architectures:

1. storefront
2. shoppable posts
3. shoppable ads
4. livestream shopping
5. Influencer Campaign
6. in-app messaging

1. Storefront

Storefront here refers to the e-commerce store brands embedded directly on their social media profiles.

They’re designed to operate as full-fledged online stores – meaning these social storefronts showcase products for shoppers to find, explore, and shop without ever leaving the social media site.

Consumers themselves are responding positively to the social selling storefront, with 72% of them admitting that they love the convenience of browsing and purchasing products.

2. Shoppable posts

Shoppable posts are probably the first thing that comes to mind when describing what social commerce is.

They are individual social media posts that showcase products while giving viewers a chance to make a purchase. Brands often publish them with a CTA button that when clicked directs shoppers to checkout.

You’ll see them integrated into all kinds of social media channels – Facebook posts, Pinterest pins, Instagram Stories, Instagram Reels, TikTok videos, and more.

3. Shoppable ads

Shoppable ads are basically shoppable posts that are configured as social media ads. Such sponsored posts are accompanied by buy buttons which you can easily check out from social networking pages.

Brands, on the other hand, are privileged to target specific segments of consumers.

Social platforms like Facebook and Instagram use audience analytics and smart trackers to help you reach the right shoppers based on their interests, demographics, engagement, and more.

4. Livestream shopping

Livestream Shopping is an interactive sales experience where you engage with customers in real-time through a live video stream.

Your job is to show viewers the product and perhaps answer customer questions, as well as give them the chance to make a purchase via the embedded checkout link.

For example, you can broadcast the launch of your products through Facebook Live. The event may be accompanied by a product link that allows viewers to purchase mid-stream and complete the transaction.

So far, this example of social commerce has converted over 50% of US consumers. They all admit to doing their shopping after being stripped naked by the livestream hosts.

5. Influencer Campaign

Influencer Marketing “What is Social Commerce?” There is another strategy to prioritize after understanding the answer.

And this is because influencers are exceptionally trusted in driving brand awareness, audience engagement, lead generation, and conversion.

They’re so influential that over 50% of Millennials and Gen Xers trust their product recommendations ^[7], This alone puts influencers ahead of even celebrities, who have a trust rate of 38%.

There are no rules on how and when to include influencer campaigns in social commerce. You can hire them to advertise your products in their posts, shake your wares in their videos, or perhaps work as affiliate partners.

Whichever approach you take, you should be able to get a return on investment (ROI) of approximately $5.20 for every $1 spent on influencer marketing campaigns ^[8], And if you’re counted among the top 13% of businesses, you can multiply your return by up to $20 for every $1 spent.

6. In-app messaging

Lead engagement in social commerce is also done through in-app messaging. This is where you send personalized direct messages (DMs) to prospects, qualified leads, and customers with the main goal of driving conversions.

Already, 64% of consumers are willing to engage with brands today ^[9], And if you can make them feel connected, 57% say they’d be willing to increase their spending.

Such campaigns are best managed with specialized social media messaging tools. You’ll need something that can segment audiences, create automated campaigns, target recipients based on preset triggers, and generate customizable templates of social commerce examples.

Best social commerce platforms and tools

Now that we’ve defined what social commerce is and explored six case examples, it only makes sense to review the best social commerce platforms.

So far, we’ve identified two options, both of which are powered by the Meta social media ecosystem. You should prioritize these while starting the journey of social commerce.

Both social commerce platforms are massively flexible, offer campaign automation, feature custom targeting, support omnichannel social selling, and generate in-depth analytics on key performance metrics.

1. Facebook shops

Facebook is one of the most comprehensive platforms for social selling. It has a consumer base of over 2.9 billion monthly active users, as well as a variety of engagement, marketing, and sales tools you can use for social commerce. ^[10],

Most outstanding is Facebook Shops, a social commerce platform for setting up custom storefronts that provide a mobile-first shopping experience. You get the flexibility to display products from your online store, set up merchandise with product collections, and customize the look of the store to match your brand.

Sellers can engage customers through all kinds of social channels in the Meta ecosystem – including WhatsApp, Instagram Direct, Messenger, and more. The conversion is then driven through in-app checkout, after which customers have the opportunity to leave a product review.

2. Instagram Shoppable Posts

While Instagram doesn’t have as many social commerce tools as Facebook, it’s ease wins the contest. This has seen it achieve an average order value of $65, which is currently the highest among all social commerce platforms. Facebook is second with $55, while Twitter is ahead at $46 and YouTube at $38. ,

One of the most converting social commerce tools out there is Shoppable Posts, which allows you to convert your Instagram followers directly through Instafeed posts, live broadcasts, reels, IGTV videos, and Instagram Stories.

To set this up, you’ll need an Instagram shop that showcases your products. It’s from this catalog that you’ll later create products to tag in your Instagram shoppable posts.

Once customers tap the tag, they’ll be able to view product details as well as make a purchase via Instagram checkout.

However, it’s worth noting that Instagram Shoppable posts can only be accessed by merchants in 46 countries, while Instagram Checkout is only for US-based sellers and buyers.

Concluding: What’s the Best Social Commerce Strategy for Your Online Business?

While you’re at it, keep in mind that there is no such thing as the best social commerce strategy. Rather, each of your campaigns should be tailored to your specific audience, products, sales funnel, and social commerce platform.

Feel free to experiment with different options, or maybe even mix multiple social channels to create an omnichannel social commerce platform.

Also, remember that social commerce isn’t limited to Facebook and Instagram. You can also try it on the following platforms:

They may not be as advanced as Facebook and Instagram, but you will find that they are good enough for social commerce purposes.