Topic of the week – Social Commerce will reach new highs in popularity in 2024
The rapid growth of the social commerce market has transformed the way new and old shoppers alike, interact with brands and products. With the introduction of TikTok shop, Instagram’s store feature and Facebook Marketplace among others, the eCommerce landscape has changed, forcing retailers to pay attention to this new online shopping channel.
Did you know that 21% of online shoppers in the UK start their journey on a social media platform such as Instagram or TikTok? According to Capterra data, as of April 2024 almost a quarter of online shoppers being their buying journey on social media, with 75% of respondents still stating that they often start with an online search engine. Although for the moment, the traditional method of eCommerce transactions, being an online search, remains king, it is important to pay attention to the growth of social media shopping and the percentage of the market that it is occupying. However, the report also showed that despite 21% starting their journey through social media, only 7% of these shoppers actually finalise orders using this channel. It was noted that the most common place to place an order was on a retailers website or app, 55% to be exact. It is important to note that this is most prevalent amongst Millennial shoppers who hold 33& of social commerce spending, followed by Gen Z shoppers.
For larger, more well-established brands, this will probably remain to be the case for the foreseeable future. However, for smaller and newer brands, social media is a great way to set up a purchasing platform, as it provides a more connected and targeted experience with their audience, and allows for more exposure to the right people. For these business it is a great way to attract interest and new customers. In Capterra’s report, it was noted that 46% of online shoppers use social media to find small or local brands, with 73% of respondents also stating that social media is a great way to discover products they are interested in. But if you are starting to think, ‘maybe I should look into social media selling’, you should know what platforms are most popular. Instagram has the most popular shopping platform out of the social media giants at 69%, followed by Facebook and finally TikTok.
Overall, social media is a great way to attract new interest in your brand and is a good channel to include in an integrated shopping experience. The market is forecasted more rapid growth, reaching $8.5 trillion by 2030, 25% penetration by the end of 2024, and 13.7% year on year growth by 2028.
In other news
Despite the struggle of the highstreets in recent years, Aura Futures research has highlighted that 50% of retailers plan to open new brick and mortar stores over the next two years. Aura Futures, report that 49% of retailers view lowered consumer spending as the main issue faced by retailers over the next 12 months, with many putting their faith in attracting Gen Z and Millennial customers to revive retailer footfall. 66% of retailers believe that this will be the way to secure the future of physical retail stores. In fact 68% of the retailers contacted within this report have shown interest in investing in digital customer experience technology to improve the in-store experience within the next two years. Could this be the revival of the highstreet?
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
That’s all for this week…
If you would like to read more industry related news and insights, check out our articles below, or get in touch to discuss our services!
Social Commerce Stats
Demographics:
65% of Millennials make purchases on social media
Gen Z shoppers account for 29% of social commerce spending
58% of shoppers in the US made a purchase after seeing it on social media
The US Social Commerce market is expected to reach over $90 billion in revenue by 2025
Top Social Media platforms for shopping:
Instagram – 69%
Facebook – 54%
TikTok – 50%
Main reasons for social media shopping:
‘To find products I am interested in’ – 73%
‘Finding discounts’ – 61%
‘Discovery of new brands’ – 58%
*Statistics sourced from EcommerceNews, Hostinger