Today, social commerce serves a unique purpose by creating a unique experience for each consumer on a shopping spree online. The trend of social interaction is no longer hidden, as one can easily find a link directing them to a product for purchase on notable social platforms. This evolution proceeded faster than normal due to the effect of the Gen Z category and their constant presence on social media. It is estimated that social media sales will total $1.298 billion worldwide in 2023, based on online data.
While the effect is widespread, projections and statistics indicate that there would be major growth in more countries, developing and under-developed. This article will cover the essential statistics regarding social commerce and highlight things every consumer, creator, or social media user should know online. The statistics reveal the number of users, platforms used, and revenue generated on these platforms.
- Buyers on social platforms in America are over 90 million in number.
- Most posts on TikTok and Instagram are tailored to have shopping links.
- In 2020, social commerce generated over $492 billion globally.
- Regarding hierarchy, Facebook ranks first based on the number of customers who buy products.
- There is an expectation that over $3.3 billion in social commerce sales will be made by 2028.
- In 2021, retail commerce sales hit $36.62 billion in the U.S.
- 55% of Gen Z on social media acknowledge purchasing an item over media platforms.
- An older range of individuals, about 43%, between ages 55-64, have not bought any items on social media.
- Social media purchases recorded higher numbers in 2020 during the pandemic.
Social Commerce Stats of 2023
Social media platforms have evolved from being basic tools for communication into strong platforms for interacting with brands and companies. Even though e-commerce is not new, modern companies adjust their marketing tactics to enable direct transactions through social media accounts.
Hence, the social commerce statistics below offer important information for developing more successful social media marketing campaigns.
1. Online Shopping in 2020 Increased Due to the Covid-19 Pandemic.
Due to the pandemic’s lockdown effect, remote work, homeschooling, and everything functioning online thrived. Hence, there has been a considerable rise in digital and internet service use in recent years. Online purchasing has also expanded significantly, which makes sense, as more people have gotten used to the trend and can’t change it immediately.
2. Buyers on Social Platforms in America Are Over 90 Million.
The figure is a large number to think of, and when statistics reference China and Russia as more popular, you may be forced to wonder how much. Being an independent nation, this sum is good enough, and there is a likelihood of more progress shortly.
Demography and User Population
While Millennials and Baby Boomers have a big influence on social media, Gen Z has changed how we interact with trends and brands, changing user perspectives. Gen Z, Millennials, and Baby Boomers now use social media to make purchases. These statistics explore social media’s tremendous influence on the modern world.
Although these categories of older people are also participating, social commerce techniques generally target younger demographics. The growth of user-generated content has also been spurred by social commerce, with some producers making a living off it.
3. 35% of Individuals Surveyed in a 2021 Poll Acknowledged Purchases Made From Ads on Social Media.
This shows ads’ effect on people’s emotions, convincing them to buy items online without seeing or testing the product immediately. However, most purchases are based on brand influence, pre-information, or referrals from colleagues and peers. Gen Z has the most bragging rights here, followed by the Baby Boomers and Millenials.
4. Men Make More Purchases Online Than Women, With a Difference of Over 7% By Numbers.
The majority of internet shoppers are men. However, social commerce user data shows that female users exist more than male users online. 84.3% of men and 77% of women shop online. Men make 5.4 online purchases annually, compared to women’s average of 7.1. In addition, women typically spend more money online than men do. Additionally, men often buy things online when needed, whereas women buy things for necessities and to try out new things.
5. An Older Range of Individuals, About 43%, Between Ages 55-64, Have Not Bought Any Items on Social Media.
This may be shocking, but it is most likely that this group of individuals has had experiences in the past that have changed their views on online purchases. The number is low, though, and it doesn’t account for the number of people who have purchased at least once.
6. 55% of Gen Z on Social Media Acknowledge Purchasing An Item Over Media Platforms.
Gen Z are natural lovers of social commerce because they were raised with technology and trends. This also implies that social media advertising has a greater influence on them than it does on Millennials and Baby Boomers. However, these latter generations are catching up, and Gen Z is crucial in influencing social media marketing and trends in social commerce. Hence, social interaction will likely become more common as consumers’ purchasing power increases.
7. In Approximately Three Years, Buyers Through the Social Commerce Sphere Could Go From 79 to 108 Million.
The growing proportion of Generation Z workers will mostly affect this number. In addition, many Baby Boomers and Millennials are constantly becoming part of the social commerce culture with little or no choice. It’s also important to remember that Generation Alpha is rising, and it will be important to anticipate and constantly monitor their influence in the upcoming years.
This session focuses on the statistics in different countries and their contributions to social media shopping worldwide.
8. The Total Amount Recovered From Retail Sales on Social Commerce Markets was About $351.65 Billion in Asia and China.
With sales of an astonishing $361.65 billion in 2021, China is expected to dominate the worldwide social commerce sector. The United States, on the other hand, is well behind, bringing in only around $36.62 billion, or about one-tenth of China’s total revenue. The U.S. total has, however, increased by a considerable 35.8% from the 2020 figures, which is noteworthy.
9. 51.5% of Individuals in China Have Bought An Item From a Social Media Platform.
The fact that more than half of Chinese people have completed at least one online purchase is highlighted by this statistic. Notably, this is a significant component of China’s country-wide dominance of social commerce sales.
10. Russia has a Relatively High Percentage, With About 49.5% of Users on Social Media Recording Purchases.
Russian social media users base their shopping decisions on the research they find there. As a result, over half of the Russian people use social media to learn about different goods and services.
11. In 2021, the American Social Commerce Sales Sector Recorded An Increase of $36.62 Billion.
It was anticipated that after that bloom, American social commerce will continue to rise through 2022 and beyond. Sales are projected to increase as Generation Z’s influence in the workforce and purchasing power grow. The older generation is also expected to engage in social commerce more as it becomes more widespread. New social commerce goods and services will get more attention, and higher sales will result from being introduced on social media platforms. Notably, influencers are anticipated to have a bigger impact on this expansion, with their posts reaching thousands and millions of people.
Online Sales and Influencing Power
This session will cover the effect of influencers on the growth of social commerce and the contribution of influencer marketing to online sales.
12. There is a 70% Influence That Live Streams Have on User’s Buying Interests.
According to live-streaming data, this type of video material is incredibly popular, especially with Gen Z. It follows that live-streaming videos should greatly impact people’s social commerce purchase decisions. Short-form videos providing information and product reviews are particularly good at increasing social media engagement and generating purchases. This type of content includes Facebook Live, Pinterest videos, TikTok videos, Instagram Stories, Instagram Reels, and other formats of video creation.
13. Influencer Marketing is a Consideration For At Least 88% of Marketing Professionals.
More companies and brands are using social commerce to increase engagement and sales to stay current. Now is the perfect time to start a social selling plan for your company or brand.
14. Most Posts on TikTok and Instagram Are Tailored to Have Shopping Links.
Shoppable posts increase engagement and generate revenue for small and large businesses. These posts, mostly seen on social platforms, highlight your items, inform and enlighten your readers, and they can dramatically boost online sales. It is worth noting that shoppable posts are supported by social networking sites like Facebook, Instagram, and TikTok, allowing you to insert clickable links that drive potential shoppers to your website, store, or particular goods or services.
15. On the Social Media Commerce Market, 44% of Sales Are Attributed to Video Games and Accessories.
Social commerce sales for toys and hobbies, which account for 29% of all sales, come in second. The third and fourth positions, with respective sales shares ranging from 25% to 26%, are closely followed by accessories, watches, and jewelry. The other parts that make up social commerce sales are consumer electronics, digital publications, and other unrelated products.
Statistics of Purchases Made in the Social Commerce Market
This session categorizes the purchase decisions of consumers in the Market and how much influence social media has on their choices.
16. 11% of Buyers On Social Media Are Reported to Make Instant Purchases, While 44% Choose to Conduct Proper Research On Items.
Social media purchases are effective for increasing sales. However, a few people immediately purchase items displayed via social media, and about 44% delay purchasing until they do research first. Therefore, not every sale occurs promptly since customers research things or services before deciding.
17. The Largest Purchases Are Recorded From Facebook Shops, IGTV, Streaming, and Stories.
People make decisions easily when they stream content where the creator introduces and speaks convincingly about a product. Short videos on Instagram, known as Instagram reels, are reliable and mostly lead users to discover products. Adding the “buy” button to your Instagram Stories increases the chance of purchase by 13%.
Social Commerce vs. E-commerce Statistics
The e-commerce market has thrived for several years, making companies adapt social media to increase sales.
18. Sales in Retail E-commerce Were Targeted to Reach An Estimated $4.3 Trillion Last Year 2022.
From the data gathered, social media will contribute greatly to the growth of this industry.
19. Due to Worries Over Security in Social Commerce, E-commerce Still Tends to Be More Prevalent in America.
Online privacy and security are things that everyone should be concerned about, but it’s vital for Americans. People are very careful about online purchases because of online security fears. This mindset is gradually evolving as social commerce is expected to tighten security so people have fewer fears. E-commerce and social commerce are meant to complement each other.
Social Commerce Revenue
The main goal of every company is to make revenue; the same thing can be said for any social commerce company. Social commerce revenue statistics help people gauge their success as much as engagement statistics do.
20. In 2020, $492 Billion in Revenue At the Global Level was Attributed to Social Media.
This value is expected to grow to $3.37 trillion by 2028. Revenues increased by $560 billion in revenue. In the coming years, social commerce is expected to grow rapidly. Statistics have shown that it is growing three times faster than traditional e-commerce.
The Top Social Commerce Platforms in Popularity
Undoubtedly, some social media sites are more suited for e-commerce than others. The current social media sites popular for social commerce are included below.
21. Pinterest Is the Top Social Commerce Platform.
The primary focus of Pinterest is those users who buy and spend mostly on products and services. Currently, Pinterest is dominated by the female demographic, though the males are joining.
22. Facebook Ranks First When it Comes to the Number of Buyers.
Facebook boasts of having the highest number of buyers at $56.1 billion. Its buyers don’t just buy as often as Pinterest buyers.
23. Instagram is Fast-Rising in this Market.
The time it will take before Instagram rises to the top spot has reduced drastically. This results from the new social commerce features provided on the platform to make shopping easy.
24. Twitter and YouTube Were Missing From the List.
Users on YouTube don’t visit the platform with the intention of buying. They mostly come to research products and services before making their purchases elsewhere. So, it didn’t rank in the list for social commerce this year.
The Future of Social Commerce
Soon, social commerce will likely grow to become one of the safest and most utilized means of doing e-commerce business.
25. By 2028, Social Commerce is Expected to Have Generated a Revenue of Over $3.3 Billion.
With social media growing rapidly worldwide, people will loosen up and accept the change that has come. The social media platforms can only get better and safer in their services. The chances are very high that social commerce will reach a revenue of over $3.3 billion in sales by 2028.
26. 26 2022 Advertisers Were Expected to Spend An Estimated $56 Billion.
Products and services can be promoted for free, but the results may take longer. Hence, the people ready to succeed will spend money to remain at the top of their industry.
27. 73% of Businesses will End Up Selling Their Goods and Services Directly From Social Media Between 2022 and 2023.
Buying and selling can be so easy and fast on social commerce platforms. People can also share their purchase experiences if they want to. According to statistics, social commerce is growing lightning, appealing to Gen Z and Millennials.
In conclusion, the landscape of social commerce in 2023 is undeniably robust and promising. With a surge in user engagement, substantial revenue growth, and an ever-expanding array of platforms, it’s clear that social commerce has firmly established itself as a significant player in the e-commerce industry. As consumers increasingly turn to social media for shopping inspiration and convenience, businesses and marketers must adapt and harness the power of these platforms to connect with their target audiences effectively. By staying attuned to the latest trends and leveraging the data-backed insights provided in this article, businesses can position themselves for success in the dynamic world of social commerce in the years ahead.
Which social media platform tops the list in revenue generation?
Will Social Media increase sales for businesses onwards?
Does the Amount of Time Spent Per Day on Social Media Affect Social Commerce?