Social commerce is the recent and upcoming trend amidst the eCommerce arena. It is a full-funnel, data-oriented & seamless marketing & communication model, a sales strategy for products and services fuelled by personalization, humanization, inspiration, and direct interaction, leveraging social media platforms in addition to the building or usage of an e-community, and the employment of technical infrastructure, empowering, & enabling cohesive digital commerce and omni-channel approaches.

Social commerce has been driven by various factors like increased product discovery on social media platforms, social media becoming a preferable video search engine for certain age demographics utilising the role of social media influencers with consumer behavioural factors (for instance social proof and social learning theory) for better connectivity.

Industry trends also indicate the rising prominence of brands collaborating with influencer marketing platforms to curate strategic and targeted campaigns. The henceforth campaigns are precisely placed on websites, social media platforms, ecommerce platforms, et al. to augment the buying as well as customer experience.

With this keeping in mind, let’s see some latest social commerce statistics related to global and local market size, statistics, and trends.

Social Commerce Statistics 2024

Based on through research and comprehensive study we compiled Social commerce market share analysis that states that

“Nearly half of internet users worldwide will use social networks for purchase by 2024”

eMarketer reported that the above-stated figure registered a growth of 47% in 2023. People are preferring social media platforms for purchasing decisions. Hubspot reported that Gen-X, gen-Z, and Millennials prefer finding products on social media platforms and 24% of social media users have bought on the basis of influencer recommendation, a 33% increase from last year.

Infact, China is emerging as the global leader in social commerce sales.

Oberlo reported that the estimated social commerce valuation in China will be 1.2 trillion in 2024. Home grown platforms like WeChat and Alibaba are dominating the social commerce market. Furthermore, Chinese customers trust social media influencers more than any other countries. After China, the United States of America (USA) has the second biggest social commerce market.

Note: The role social media influencers are gaining traction in social commerce

Statista reported about Global digital marketing statistics that social media influencers are highly trusted by their followers and are effectively driving sales.

A study by Neilsen found that more than 82% of consumers are inclined towards influencer recommendation over their family, friends, or closed one’s suggestions.

Hubspot reported that 24% of social media users have bought on the basis of influencer recommendation, a 33% increase from last year.

Note:Social commerce will be driven by Gen-Z and millennials in 2024

eMarketers reported that Gen-Z and millennials are most active on social media platforms so they are more likely inclined to make a purchase on social platforms.

Hubspot reported that 47% of users feel comfortable while buying through social media.

Deloitte reported that 67% of social media users would consider a product or a brand if it is promoted by their favourite influencer.

Note: Logistics, Counterfeiting, and competition are major social commerce challenges

India is world’s 7th largest country area wise and has all geographical features which introduces distortion in transportation and logistics. Whereas counterfeiting can easily erode customers' trust on social commerce. India is an emerging market and many brands are turning to social media platforms to leverage the offered opportunities which is creating huge competition.

Also read here,Top 5 social E-commerce startups in India

Social Commerce Market Size 2024

Social commerce is increasing in valuation as we speak. The digital world has made shopping very accessible and seamless. Lets see the growth projections and statistics: Note: Social commerce reached $1.6 trillion in 2024 and will grow with 31.6% CAGR

Grand view research reported that the global social commerce market will grow by 31.6% CAGR till 2030.

Deloitte India Report stated that India will soon become the third-largest consumer market and its online commerce market size is expected to reach $325 billion by 2030, up from $70 billion in 2022, mainly due to the rapid expansion of eCommerce in tier-2 and tier-3 cities.

Note: Social commerce will account for 12.4% of global retail sales in 2024.

eMarketer furthermore suggested that 2024 will see a rise of 10.9% from 2023.

Social commerce market size report suggests that it is becoming a more convenient and engaging platform for purchasing. Moreover, social commerce platforms have a huge amount of data which they are utilising in predicting and marketing to infuse faster purchasing decisions.

Note: Social commerce market in India will reach $20 billion in 2024

BW Businessworld reported about the social commerce future in India that India will register a huge jump from $7 Billion in 2022 to $20 billion in 2024. The factors which are driving the phenomenal growth are increasing popularity of social media influencers, growing social media users base, and increase in adoption of smartphones.

PWC highlights that Out of total internet users in India nearly 55% of the connections were in urban areas.

Note: India’s D2C market is expected to reach US$ 60 billion by FY27

Growth will be registered in the D2C market segment. Shopify reported about recent social commerce trends that the overall e-commerce market is also expected to reach US$ 350 billion by 2030 and it has experienced 21.5% growth in 2022 and reached US$ 74.8 billion. On the B2C market segment, Grand View research reported that B2C has dominated with market share of 55.97% till 2022.

Note: Different well reputed research statistics indicate India as a rising social commerce destination.

InGovern research services indicated a market valuation of $20 Billion by 2026. RedSeer Consulting reported $60 Billion by 2025 and Sequoia Capital stated that $70 billion by 2030. Deloitte submitted that India will become the third-largest social commerce market after China and USA.

Global Social Commerce Market Trends

In the global order, consumers are at the centre of social commerce and based upon their choices and preferences mixed with key technologies and revolutionary advancements, the perceptible trends appear. Some of the trends are:

1. Social commerce statistics 2024 dominates in Q4 and eye set for upcoming year

Global social commerce market trends informs that social commerce industries and affiliated industries have set in the process to document the recent changes happening during the year 2023. Agencies and brands related to marketing and media landscapes are looking ahead with trends which can benefit them in upcoming years.

2. Focus is shifting back to creativity and innovation

Amid the increased frequency of AI generated content in fields like images, texts, or videos; industries are reorienting their focus on creativity and innovation. As these attributes cannot be commodified. Social commerce growth statistics have indicated the rise of creative content in captivating audiences.

3. Social commerce allowing for in-app conversion and posts that are shoppable

The features have turned mindless scrolling into a shopping main event. The selling model has empowered businesses to market and sell products exclusively on social media platforms. Social commerce industry analysis informs that Businesses can now create digital assets like images, videos, and posts, through which customers can interact and purchase products. For instance Product tags, view shops, shoppable posts, etc.

4. Brands are now focused on telling stories on social platforms

Storytelling has been an integral part of social commerce from long before. Now there will be a reinvigorated focus on crafting compelling stories which concludes with a commerce moment. The locus standi is to merge the experience with conversion and build a strong consumer brand. One of the Social shopping behaviour trends is, 24% of social media users have bought on the basis of influencer recommendation, a 33% increase from last year. Needless to say, influencer content is heavily inclined to engaging storytelling.

5. Brands are focusing on understanding culture and communities to thrive

Understanding of Social commerce user demographic’s culture and communities is becoming the core of any brand. The understanding that what drives a particular group or segment is a key to brand success. Factors like ethnicity, generational, interests, habits, etc have been embraced by brands and once embraced by a community, a brand's potential is limitless. Bain and Company reports that with reinvigorated focus on trust, social commerce will grow to achieve customisation and diversity of product, sense of community connection and existentialism, improved convenience, a bargaining experience similar to offline purchases, and a fun and engaging shopping experience.

6. Integration of AI will increase furthermore

Agencies will integrate AI in the automation processes and utilise it to increase the work efficiency. Agencies will be integrating its ethical POV and AI will act as another tool in the toolbox. AI is going to stay and research on more avenues will get boosts. AI will positively affect industries like government, healthcare, academia, research and development, inter alia. A substantive surge will become evident and late adopters will be at disadvantage.

7. Predictive Intelligence will gain momentum

Predictive intelligence, sometimes referred to as predictive analytics, is a method of creating consumer experience that is unique to each individual. Through monitoring customer behaviour and building a profile of their specific preferences and merging it with profile data can be then used to predict what customers will want next. DocuSign utilised predictive leads data which resulted in 38% increase in predictability of conversions.

8. Mobile shopping and the rise of mobile commerce

Currently India has more than 1.2 Billion Mobile users. Social commerce growth statistics and allied sectors, by 2025 56% of new mobile users in India will be from the Rural region. Growing interaction of mobile and financial revolution like UPI will increase the scope of social commerce to new heights. Social shopping behaviour trends informs that the Focus should be on mobile friendly websites and easy product purchase check-out experiences.

9. Social media platforms will tesseract into retail stores

Social media platforms like Instagram, Facebook, YouTube, Linkedin, TikTok, etc. are capitalising on their engagement and interaction. All the major platforms are offering in-app or in-website purchase features. Expert Market Research reported, The rising consumer engagement across digital channels and the increased investments in the development and expansion of digital platforms are the key industry trends propelling the market growth.

10. The growing impetus on same day delivery and faster delivery

Consumer experiences are getting better each day. To improve it more, social commerce platforms and brands are researching and investing in same day delivery to satisfy customer’s urge to have the product as soon as possible. This feature is becoming a game changer and offers competitive advantage to businesses. Additionally, inculcating sustainable and carbon friendly deliveries will gain momentum too. Expert Market Research reported that eCommerce has now become mainstream and consumers are in pursuit of instant gratification. Furthermore, social commerce is triggered via peer-to-peer platforms and influencers.

11. Personalised shopping experiences through leveraging machine learning

Machine learning algorithms can analyse multiple shopping patterns, consumer data, and past preferences to streamline and enhance customer experiences. Additionally AI-chatbots can be utilised to provide instant support and personal assistance. It will help in solidifying stronger relationships and drive sales. McKinsey reported that Metaverse has merged the realms of digital and physical existence and social commerce will leverage it by igniting genuine brand engagement and will unfold unprecedented possibilities for human connections and brand experiences.

12. Augmented reality is enhancing customer immersive experiences

Augmented reality is revolutionising social commerce with immersive experiences. Customers can visualise a product before making purchasing decisions. Brands like Lenskart, Ikea are already utilising and leveraging the benefits. More than 32% of customers are already using AR and by the end of 2023 there will be 1.3 Billion users. 71% of the consumers informed that they will shop more if AR technology is made available to them.

13. Subscription Services are the New Cool

Subscription services have gained momentum and are bound to grow more in 2024. Through subscription based models, businesses can provide personalised experiences and convenient conversion options. Businesses will be focusing more on adding values to the product and making the product more customer centric. It will also foster long term customer and brand relationships and help in improving Customer Lifetime value (CLV). Deloitte reported Creators need a steady stream of income and for that they need support from platforms, retailers, and brands. Various new monetization schemes like direct tipping, subscriptions, visual creator storefronts, etc. allows creators to diversify and predict their income stream.

14. Embracing sustainable development goals into social commerce

Customers are growing conscious about sustainable and green lifestyles. They are more inclined towards a no-carbon footprint lifestyle. Brands are devising various methods to reduce carbon in their operations be it social commerce platforms, delivery or transportation. More ethical, environmentally responsible, and eco friendly practices following brands are attracting more and more customers.

15. Established marketplaces will register more digital footfalls

Online marketplaces like Flipkart, Myntra, Amazon, etc will see more digital footfalls. With increased mobile penetration and improved digital literacy, customers are focusing on reviews, testimonials, advocacy about a product before making final purchasing decisions. Online marketplaces are offering all built in solutions for custom efficiency. Furthermore, established marketplaces are integrating HD images, UGC Videos, and digital marketing tools and methods to increase engagement and interactions.

16. Short form video to engage customers

Shopify estimated that by 2026 the social commerce market will achieve a market valuation of $ 2.9 billion and Short form videos are increasing in demand such as Instagram reels, YouTube Shorts, etc. Customers are loving the trends and businesses are leveraging to educate customers about products and services with these short videos. Another dimension is increased creativity and aesthetic touch in short videos that captivate audiences.

17. Livestream shopping is increasing its scope

Big online marketplaces like Amazon Live, TikTok, YouTube, Shopify, instagram, etc have unveiled live stream features. According to a Deloitte India Report India will soon become the third-largest consumer market and its online commerce market size is expected to reach $325 billion by 2030, up from $70 billion in 2022, mainly due to the rapid expansion of eCommerce in tier-2 and tier-3 cities.

18. Image search is opening new windows

Image search or visual search is allowing easy access to customers to find any product through an image. Customers are showing a very positive impact. Image search has the ability to divert customers to social commerce platforms. Even if a customer starts from a physical store, they can search the product online through image search and acquire information related to price range, quality, and other metrics.

19. Product videos are buzzing on social commerce platforms

Hubspot reported that in the past three months, around 41% of customers have discovered a product on social media platforms. Product videos are a great way to engage as well as educate customers about a product. The consumer can leverage an elevated visual experience and true realisation of the product's outcome. A high quality can bring stars to your product and brands are competing to produce best product videos to have a competitive edge over their competitors.