Social Commerce: Trends and Key Insights for 2025

Social Commerce: Trends and Key Insights for 2025

Table of Contents

  1. Key Highlights
  2. Introduction
  3. Defining Social Commerce
  4. The Rise of Social Commerce
  5. Key Social Commerce Platforms
  6. Social Commerce Trends for 2025
  7. Implications for Brands
  8. Conclusion
  9. FAQ

Key Highlights

  • Social commerce in the U.S. is projected to hit nearly $80 billion in retail earnings by 2025, representing over 17% of total online sales.
  • With over 5.24 billion global social media users, brands are leveraging social commerce for enhanced customer engagement and more streamlined shopping experiences.
  • Major platforms like Instagram, Facebook, TikTok, and Pinterest continue to refine their social commerce tools, empowering brands to seamlessly integrate shopping within social interactions.

Introduction

Imagine scrolling through your favorite social media feed and, with just a tap, purchasing a stylish piece of clothing or the latest tech gadget without leaving the app. This is no longer a futuristic dream; it’s the new norm, and it’s called social commerce. As digital interactions evolve, the boundaries between social media platforms and online shopping have blurred, creating unprecedented opportunities for businesses and consumers alike. In the U.S. alone, retail earnings from social commerce are projected to reach nearly $80 billion by 2025, driven by a growing consumer base that prefers shopping where they engage socially.

Through this article, we will dissect the latest trends in social commerce, examine critical insights for the years ahead, and explore how businesses can effectively harness this rapidly expanding landscape.

Defining Social Commerce

Social commerce refers to the use of social media platforms to facilitate the buying and selling of products. Unlike traditional e-commerce, which relies on standalone websites, social commerce allows customers to shop directly within social media apps such as Instagram, Facebook, TikTok, and Pinterest. These platforms integrate shopping features, making purchasing both intuitive and instantaneous.

Social Commerce vs. E-commerce

While social commerce is a subset of e-commerce, there are key differences:

  • E-commerce encompasses all online shopping experiences, typically occurring on dedicated platforms or websites.
  • Social commerce manifests within social media networks, allowing users to discover, evaluate, and purchase products without exiting the app.

The distinction highlights a significant shift in consumer behavior, as people increasingly use social media to connect not just with friends but with brands as well.

The Rise of Social Commerce

Social commerce is thriving, and several factors contribute to its rapid growth:

  1. Increased Social Media Usage: The average internet user now spends approximately 2 hours and 30 minutes daily on social media, underscoring social media's role as a primary touchpoint for consumer engagement.

  2. Growing Air Coverage of Social Shoppers: In the U.S., the number of social shoppers grew from about 96 million in 2023 to an estimated 104 million in 2025. A notable 42% of Gen Z consumers are inclined to make holiday purchases via social media.

  3. Convenience and Interactivity: Social commerce provides a seamless shopping experience, allowing consumers to explore, evaluate, and buy products directly next to their social interactions.

  4. The Power of Influencer Marketing: Influencer partnerships drive conversions, as 74% of shoppers rely on influencer recommendations. Platforms facilitate this by allowing influencers to tag products directly in their posts, streamlining the buying process for followers.

Key Social Commerce Platforms

Instagram

Instagram is at the forefront of social commerce, boasting its native shopping features. With nearly 26% of the global population over 13 using the platform, brands can significantly enhance visibility and sales. Key features include:

  • Shopping Tags: Brands can tag products in posts and stories, leading followers directly to purchase options.
  • Instagram Shop: A customizable storefront that lets users browse, save, and purchase products.
  • DMs for Shopping: Customers can make inquiries and buy directly through Instagram direct messages.

Facebook

As the most widely used social media platform for marketers, Facebook facilitates social commerce through:

  • Marketplace and Shops: Brands can create Facebook shops that serve as interactive storefronts with product catalogs.
  • Direct Shopping Integration: Shoppers can use Facebook Checkout or be redirected to external e-commerce websites for purchases.

TikTok

Emerging rapidly, TikTok is projected to reach 48.8 million U.S. users by 2025. It enables:

  • In-App Shopping: Partnering with Shopify, TikTok allows brands to set up profiles with shopping tabs, creating a virtual storefront.
  • Engaging Video Content: Users can discover products through entertaining and informative videos, making shopping interactive.

Pinterest

A powerful visual search engine, Pinterest is home to over 465 million monthly users. Unlike other platforms, its unique positioning allows for:

  • Discoverability: Users often come seeking inspiration, presenting brands an opportunity to showcase their products to potential buyers with high purchasing intent.

Social Commerce Trends for 2025

As businesses look towards 2025, several trends are anticipated to take center stage in social commerce:

1. Unified Commerce

Businesses are moving towards a unified commerce model, integrating customer data across social media, websites, and physical stores. This comprehensive view enables personalized recommendations, consistent customer experiences, and more effective marketing strategies.

2. Enhanced Customer Engagement through Live Chat

The demand for real-time interactions and support is rising, with 41% of consumers expressing a desire for live chat options while shopping online. Brands that leverage this capability can provide beneficial insights and build stronger relationships with customers, ultimately boosting conversion rates.

3. Growth in Influencer Marketing

As influencer marketing is set to reach an estimated value of $22.2 billion by 2025, brands are ramping up their efforts to collaborate with both macro and micro-influencers. The authenticity associated with smaller influencers often leads to increased engagement and conversion.

4. Rise of Video Content

Video continues to dominate social media, with 89% of users indicating they are more likely to purchase after viewing a video. Users will expect brands to create engaging video content that showcases products and drives sales effectively.

5. Advanced Advertising Techniques

Advertising on social platforms will undergo transformations as brands adopt more sophisticated targeting algorithms. For example, Shopify's Audiences feature helps brands identify the best potential customers by analyzing shopping behavior across multiple platforms.

Implications for Brands

The ever-evolving landscape of social commerce presents numerous opportunities, but it also imposes challenges that brands must navigate effectively. Here are essential considerations:

  • Strategic Platform Selection: Brands need to identify which social media platforms best align with their target demographics to maximize their reach and conversions.

  • Sustaining Customer Engagement: Leveraging live chats, personalized experiences, and user-generated content will understand customer needs and preferences more effectively.

  • Optimizing Content for Success: Developing engaging video content—whether through live streams, tutorials, or behind-the-scenes clips—can significantly enhance brand visibility and customer interaction.

  • Measuring Results: Analyzing the efficacy of social commerce strategies, including engagement metrics, conversion rates, and sales data, will be critical for brands seeking long-term success in this domain.

Conclusion

As we approach 2025, social commerce is poised to reshape the landscape of online shopping in unprecedented ways. With the growing number of active social media users and advanced tools available, businesses must embrace these changes to stay relevant and competitive. By understanding the trends and adapting effectively, brands can turn social interactions into substantial sales opportunities.

FAQ

What is social commerce?
Social commerce is a business model that combines social media and shopping, enabling users to discover and purchase products directly within social platforms without needing to navigate away to an external website.

Is TikTok considered a social commerce platform?
Yes, TikTok functions as a social commerce platform, allowing users to discover and purchase products through integrated shopping features and influencer partnerships.

How do social commerce and e-commerce differ?
E-commerce encompasses all online shopping conducted via dedicated websites, while social commerce specifically occurs within social media platforms, allowing users to shop without leaving the app.

Which social commerce platform is currently the most dominant?
Facebook leads as the most popular platform for social commerce, followed closely by Instagram and TikTok.

What are some strategies for brands to succeed in social commerce?
Key strategies include selecting the right platforms for their target audiences, utilizing live chat for customer engagement, consistently creating video content, and leveraging influencer marketing to enhance visibility and trust.

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