Introduction
The Retail space is seeing a fundamental change. Social media platforms are developing into meaningful shopping experiences. Social commerce is the combination of social media and e-commerce – changing customer behavior when it comes to discovering, assessing and acquiring products. Unlike traditional online shopping (which relies upon search engines and ads) social commerce is based on engagement, influencer advertising and ease of buying in the apps.
At the forefront of this movement are TikTok and Instagram. These platforms have made passive scrolling into active purchasing using TikTok Shop, Instagram Shopping, live streams, and AI recommendations. Accenture projects that social commerce will become three times faster than traditional e-commerce and will reach $1.2 trillion by 2026.
In this extensive guide we will explore:
What social commerce is and some of it’s growth
How and why TikTok Shop and Instagram Shopping are redefining retail
The role of influencer, AI and user-generated content (UGC) to drive sales
Emerging trends and what will be relevant for the future of social commerce
Actionable strategies for businesses participation in marketplace
What is social commerce?
Social commerce is simply any transactions related to direct buying and selling products via a social media platform which means that there is not a need for the customer to leave the application. Social commerce uses the following.
✔ In-app checkout (not directing a customer to an external site)
✔ Shoppable posts, livestreams, AR try-ons
✔ AI personal recommendations for products
✔ Influencer and community based commerce
Why is the growth of social commerce so rapid?
1.Changing Consumer Preferences – Younger shoppers (Gen Z & Millennials) prefer to discover products on social media instead of using search engines.
2.Frictionless Purchasing Process – One-click purchasing efforts have lowered shopping cart abandonment.
3.Trust in Peer Recommendations – Consumers now trust influencers and user-generated content compared to advertisements.
4.Mobile-First Shopping – Over 70% of social media purchases take place on mobile (Statista).
How TikTok Is Leading The Social Commerce Charge
1. TikTok Shop: The Disruptor
TikTok has quickly transformed from a social entertainment app into a commerce platform with TikTok Shop. Some features include:
Product Tags in Videos – Users are able to tap the product and purchase the product within the app.
Live Shopping Events – Brands and influencers will demo products in real time and provide the audience with exclusive discounts.
Dropshipping integration – Sellers can connect directly with a supplier.
Case Study:
A small skincare label went viral after a TikTok influencer used one of their products in a #GetReadyWithMe video. Within 48 hours, they sold 10,000 units – with no paid media!
2. The Impact of Viral Trends (#TikTokMadeMeBuyIt)
TikTok’s algorithm works well with viral trends. For instance, the hashtag #TikTokMadeMeBuyIt has over 20 billion views, which is a clear indicator of viral content driving impulse purchases.
Some examples of viral products include:
Stainless steel ice cubes (taking off because of a cocktail making video)
Hair growth serums (based primarily on a before and after testimonial)
Mini waffle makers (from breakfast recipe videos)
Instagram Shopping: Converting Cart Interaction Into Sales
1.Shoppable Posts & Reels
Instagram has fully embraced shopping into:
Posts – Tagging products on photos.
Reels – Short videos linking customers to purchase.
Stories – Swiping up to link (now link stickers) right to checkout.
Brand Success Story:
Fashion Nova, a fast fashion brand, used Instagram influencers to grow into a $1 Billion empire. Their plan? Daily posts from influencers and limited-time deals.
2. The Growth of Micro-Influencers
While celebrities generate brand awareness, micro-influencers (with 10K-100K followers) are often producing higher engagement and conversion rates than mega-influencers.
Why?
Their audiences are typically more niche and loyal.
They’re considered to be more genuine than mega-influencers.
For example: a sustainable jewelry company generated a 200% return on investment using micro-influencers in the eco-friendly fashion marketplaces.
Key Trends Shaping Social Commerce In 2025
1. Live Shopping: The Next Big Thing
Live shopping, successful in China (via Taobao Live) and UAE, is starting to grow worldwide.
Why It Works:
+ Real-time engagement (ex: Q&A, demos, limited-time deals).
+ Fear of Missing Out (FOMO) creates urgency.
Platforms That Are Leading Live Shopping:
+ TikTok Live (use brands & influencers).
+ Instagram Live Shopping (exclusive to product drops).
+YouTube Live (usually tech & beauty brands).
2. AI & AR – How to Personalize the Shopping Experience
+AI-Powered Product Recommendations (on TikTok- algorithm-driven based on history).
+Augmented Reality (AR) Try-Ons (ex: Sephora; virtual Artist).
3. User Generated Content (UGC) Builds Trust
92% of consumers trust UGC over traditional advertisements (Nielsen). Brands are paying customers to post trust-based review, unboxings and tutorials.
Example: GoPro’s entire brand marketing strategy revolves around UGC from adventurers.
4. Social Commerce Goes Global
Countries like Southeast Asia (via Shopee & Lazada) and Latin America (via Mercado Libre) are adopting social commerce.
How Businesses Can Win at Social Commerce
1. Optimize for Mobile & Short-Form Video
Use vertical videos (carousels are also good – just not as likely to be viewed as TikTok or Reels).
Make sure your product or purchase link loads quickly.
2. Leverage Influencers
Nano-influencers (with 1K-10K followers) = High levels of engagement.
Mega-influencers (with 1M or more followers) = High levels of reach.
3. Post on Shoppable Ads & Retargeting Campaigns
Using TikTok Ads Manager & Meta Ads retarget first-time users who were engaged users.
A/B testing – carousel ad campaign ads (ONCE, not two) while testing solid video ads.
4. Host Live Shopping Events
Offer exclusive discounts during “live” shopping.
Work with influencers during the events & do the product demo live.
5. Review & Optimize Results
Track these metrics to track & optimize results:
📊 CTR (Click-Through Rate) on shoppable posts.
📊 Conversion Rate from social traffic.
📊 ROAS (Return on Ad Spend).
Conclusion: The Future of Retail Is Social
Social commerce is no longer a trend – it is the future of retail. Companies that utilize shoppability, influencers, and live shopping, on TikTok and Instagram, will remain in this space.
Key Takeaways:
✅ TikTok Shop & Instagram Shopping are must-haves for e-commerce brands.
✅ Live shopping and experience AI personalization is the “next” frontier.
✅ Micro-influencers and UGC create higher trust and conversions.
✅ Mobile first optimization is non-negotiable.
Is your brand ready for social commerce? Start TODAY with TikTok Shop, Instagram Reels ads & Live Shopping (events) and WATCH YOUR SALES RISE!!
