Ecommerce is here to stay. The practice of selling products and services through the use of your app and website is one of the biggest innovations that happened during the late 20th century. Everybody has made use of it, right?
Chances are, you might not have heard about the new kid on the block – one that is on track to eclipse ecommerce this century – social commerce.
It is transforming the world of online retail and promises even more returns than ecommerce did in its infancy.
We also have some enticing social commerce statistics that prove this:
Interesting Social Commerce Statistics (Editor’s Pick)
- Social Commerce Grew By 110% in 2 Years over traditional referral channels globally.
- Nearly 21% of Americans are regular shoppers over social media.
- China’s social commerce industry was worth $170 Billion in 2018.
- Facebook remains the most dominant social media network out there, with 1.62 billion daily active users, and 2.4 billion monthly users.
- 82% of mobile users search for a local business.
- Gen Z spends roughly 2-3x times on social media shopping than the average consumer.
- Social media earned $41 billion in total revenue in 2017.
- On average, a consumer spends $1.8k on online shopping every year!
- In the USA alone, Social commerce was worth $16.5 billion in 2018.
We will give you one more reason why you should care about this:
From 2017 to 2018 in North America alone, social commerce use has jumped from 17% to 33% among retailers. That’s roughly 2x the leap in a year’s time!
The question you should be asking yourself now is:
What is exactly is social commerce and why you, as an ecommerce retailer, need to take notice.
Let us help you understand how social commerce can grow your online business by leaps and bounds! And the easiest way to help you grasp how crucial it can be to your business is by laying it all out in nice big numbers and stats.
Let’s get this show on the road with some more social commerce stats.
Amazing Social Commerce Statistics
How crucial can this new kid on the block be for businesses? These stats tell it all:
1. Social Commerce Grew By 110% in 2 years.
In just 2 years, social commerce has grown tremendously. It has gone from being that idea that people laughed off to 110% growth when it comes to traditional referral channels.
You know that:
People don’t read newspapers, watch TV ads, like they used to.
People are glued to social media all the time.
And the best part? Social commerce has leveraged the average consumer’s use of social media channels like Facebook, Twitter, Instagram, and Pinterest to convert customers into salespersons! You heard that right.
Why are today’s businesses so interested in emerging social commerce trends? Let’s answer this next.
2. 32% of Consumers in US occasionally purchase products directly on social media.
How Americans are using social shopping? A third of online shoppers in the USA are going to buy something off Facebook on occasion? Businesses want that!
It gets better:
Nearly 21% of Americans are regular shoppers over social media. How’s that for social commerce being a viable business booster, eh?
There’s still some work to be done:
11% of online shoppers have no idea that they could buy anything off social media. Nothing that can’t be solved by spreading awareness that social commerce is here to stay, and how big it is.
This brings us to our next big statistic.
3. The market value of social commerce in the USA was $16.5 billion in 2018.
(Source: CEOWorld.biz; Shopify)
In just the USA alone, social commerce was worth $16.5 billion in 2018. That’s the social commerce market share only.
If you thought that was amazing, wait till we mention other countries.
Did you know China’s social commerce industry was worth $170 Billion in 2018? That’s a tenth of the size of the USA’s! This is due to its population of 829 million internet users.
It is important to note:
Social commerce is a subset of ecommerce. And to know how viable social commerce can be, we need to look at how big ecommerce has gotten in 2019:
- Asia: $831.7 billion
- North America: $552.6 billion
- Europe: $346.5 billion
- Australia: $18.6 billion
- Africa and the Middle East: $18.6 billion
- South America: $17.7 billion
Based on this, it is fair to say that global social commerce market worth is expected to balloon as well.
4. In 2019, over 4 billion people are connected to the internet. Almost all of them (92%) go online on mobile.
Did you know:
About 3.4 billion internet users spend 6.5 hours on average browsing the web every day?
Since your customers are spending most of their time online and on social media apps, why not take the plunge to social commerce?
5. About 74% of consumers decide to buy something after checking out social media reviews.
(Source: Global Banking and Finance)
That’s a big statistic any way you look at it. People are increasingly turning to social media for their purchase decisions. This figure includes business to consumers (B2C), and also business to business (B2B). This is huge as far as social commerce conversion rates go.
Social Commerce Usage Statistics
Let’s start by listing today’s most popular social media platforms used by businesses to drive social commerce. We will also list how brands and businesses are leveraging these platforms to sell their wares. And lastly, how crucial is mobile to making all this happen.
6. 82% of mobile users search for a local business
(Source: Research Gate)
18% of these searches result in a sale within a day.
All thanks to the intersection of mobile devices, convenient payment options, social media channels, geolocation capabilities, and more for consumers. For businesses, the availability of accurate analytics tools can help them identify which channels have resulted in a successful sale.
These are some seriously impressive social commerce on mobile statistics. Businesses ought to take note of this right away.
7. Social commerce market share: Facebook alone has driven 80.4% of all US social referrals to retail sites in the first quarter of 2019.
So marketers and businesses want to know – what social media platforms are popular and why?
Let’s break it down one by one:
Facebook remains the most dominant social media network out there. With 1.62 billion daily active users, and 2.4 billion monthly users, marketers have a gold mine to tap into.
According to Adobe, Facebook alone has driven 80.4% of all US social referrals to retail sites in the first quarter of 2019. 87% of US marketers will use it for social media marketing next year.
Instagram started as an image only social network. But now it is the 2nd most popular social network for 73.2% of US marketers. It accounts for 10.7% of all social referrals to ecommerce sites.
Next is Pinterest, which drove 8.2% of social referrals to ecommerce sites. Its usage amongst US marketers is probably at the low end, with 34.1%.
Twitter, the micro-blogging platform, remains static growth-wise. Usage by US marketers remains at 66% from 2016 to 2019. It scores rather low at 0.3% when it comes to social referrals to retail sites.
To sum up these social commerce statistics by platform:
- Facebook remains the preferred platform for consumers as well as marketers.
- Instagram is 2nd.
- Pinterest sits at 3rd position.
Now you know which social media platforms drive most sales.
8. 91% of consumers preferring videos over static media.
So you want to know how is social commerce growing? And if any new platforms are coming out soon?
Like TikTok. What even is TikTok? Only the teens know.
It’s time to talk about social commerce user demographics.
Fret not true believers. We are going to tell you what’s in.
With Gen Z becoming the biggest spenders over social media, it has been observed that short-form video content is king. YouTube, TikTok, Snapchat, and Instagram are making full use of it to attract Gen Z’s into adopting newer technologies.
Let’s talk numbers:
Interactive and visual content is king, with 91% of consumers preferring videos over static media.
Powering this new wave of growth is the introduction of mobile apps and progressive web apps PWA (a mix between an ecommerce site and mobile app), to the push towards 5G technology (which promises blistering fast internet speeds to mobile users). Fast loading apps and fast internet – that’s how its shaping up to be.
Intriguing Social Commerce User Demographics for 2019 and Beyond
What age group of people is buying products over social media? What platform do they use when making their purchases?
9. Gen Z spends roughly 2-3x more time on social media shopping than the average consumer.
Gen Z spends roughly2-3x more time on social media shopping than the average consumer. They prefer Instagram and Snapchat to make their purchasing decisions. Gen Z youth (age 6 to 21) account for $29 to 143 billion in spending over social media globally. They mostly gravitate to Instagram, Snapchat, and PWAs.
About 51% of millennials (age 21 and up) are likely to make a purchase over social media.
As for Gen X, they prefer shopping on Facebook.
10. Male social media users willing to make a purchase over social media account for 61% while female users – for 39%.
About 61% of the male social media users and 39% of the female social media users are likely to make a purchase over social media.
Here’s a social commerce statistic that breaks down the various age groups on social media:
- 18-20-year-olds – 0.8%
- 21-24-year-olds – 4.5%
- 25-34-year-olds – 23.1%
- 35-44-year-olds – 37%
- 45-54-year-olds – 21.9%
- 55-64-year-olds – 9.4%
- 65+-year-olds – 3.3%
What Industries Are Adopting Social Commerce the Most?
It’s time to break down social commerce by industry and preferred platform:
11. Facebook is ideal for:
Instagram is stellar for:
Youtube is perfect for:
- Automotive industry
- Digital and electronic products
- Services merchandise
Factors that influence Social Commerce Growth
How can a business influence a consumer’s behavior for a successful sale over social media? Convincing a person that their purchase intent is solid is not as easy as it seems. Consumers rely on social media reviews to get more information. And last but not the least, there’s product and seller uncertainty that needs to be urgently dispelled.
Let’s take a look at how purchase intent, reviews, and product and seller uncertainty come into play in social commerce.
These aspects are influenced by:
- Brand image – a good social media reputation is a must for today’s brands.
- Perceived risk – Ordering anything online? Online businesses must provide a seamless and hassle-free delivery to consumers. No one trusts a brand that lies online.
- Perceived Quality and Benefits – If a brand is great, people are going to talk about it on social media. If not, well, you know how it goes. It’s where social media reviews come in very handy. Brands are also expected to bring their A-game online. Quality and service both matter as it helps remove product and seller uncertainty from the consumer’s mind.
- Price evaluation – Price is a real stickler when shopping online. But if a business continues to maintain a positive image online, commensurate with the quality and service it professes to offer, people will be more inclined to order high-ticket items online.
- Purchase intention – Price is one factor. The risk associated with ordering online is another. Brands should take note. A stronger brand image also works wonders in convincing consumers to buy from you.
Popular Social Commerce Features Used
From the “like” buttons to “buy” buttons, social media platforms know that people are increasingly using their space to make purchase decisions. So why not make it easier than ever for them?
This idea to build a more shopper-friendly social media environment is pushed forward by Instagram’s Shoppable Feed and Pinterest Buyable pins, as well as Instagram Stories and Snapchat ‘Swipe Up’ external linking.
Here are some social commerce features that you can find pretty useful:
So your customer knows what they want. Now it’s up to you to make that process as easy and convenient as you can.
The next step?
Helping them search for their desired product quickly, making it simple to buy. And all of this within the confines of your social media page.
By setting up a buy button on a social media platform, you give your customers the same feeling as if they’re walking into a store. That helps them relax and buy things, which is, after all, the goal. Instagram, Facebook, and Pinterest all have integrated the buy button for brand pages. This way, businesses can seamlessly take advantage of in-app or on-site purchasing.
The verdict is: Instagram stories are the most popular, with 150+ million daily active users using them in 2017.
Everybody loves a good story:
And so do the brands, as they use an enticing mixture of pictures, videos, and captions to convince consumers to buy products directly from their social media app.
Social Commerce Spending and Revenues in 2018
12. On average, a consumer spends $1.8k shopping every year!
How big is social commerce? Let’s see how much people spent on the most popular social media platforms in 2017.
First, we take a look at average order values:
- Instagram – $65
- Facebook – $55
- Pinterest – $50
- Twitter – $46.29
- YouTube -$37.63
- LinkedIn – $44.5
Now let’s take a look at revenue:
- $41 billion in total revenue in 2017
- Facebook revenue tops at $10 billion
- $ 4 billion revenue on Instagram mobile.
It’s estimated that positive social media reviews can boost conversion by 133% for mobile shoppers!
And that’s a wrap, folks. Hopefully, these practical social commerce statistics give you a clearer picture of why social is the future for businesses.
Bravely embrace our advice and become part of this new world!