Shopping shifts from physical to virtual, social e-commerce value to reach $120 million

The emergence of social media has changed the way many people communicate, learn and connect with others, and is now slowly redefining the way we shop. Especially under the catalysis of the epidemic, social e-commerce has developed rapidly like a rocket. As the shopping experience shifts from physical to virtual, consumers' values ​​and preferences have also changed.

According to data from Sprout Social , 68% of consumers are accustomed to buying directly from social media, and 98% of consumers plan to make at least one purchase through social shopping or influencer-led commerce this year. It is estimated that by 2025, social commerce will become a consumer channel worth $120 million. The popularity of social commerce also means that sellers and brands can get more exposure and opportunities to increase sales.

Sprout Social surveyed nearly 1,000 consumers in the United States , and the data showed that digitally immersed Generation Z (18-24 years old) shoppers expect to use social media such as Instagram, TikTok and Snapchat for shopping in 2022; while Generation X (41-56 years old) and Baby Boomers (57-75 years old) consumers plan to increase their purchases on Pinterest and Facebook.

The specific survey conclusions and main trends of social commerce include the following:

-Consumers are embracing immersive features, including virtual reality (VR) and augmented reality (AR) for social shopping . As virtual worlds begin to take shape, social shoppers are adopting features such as VR and AR for shopping. More than 85% of consumers who currently use these two features have already started shopping on social platforms and will continue to adopt this novel way of shopping. The consumer groups are mainly concentrated in Generation Z and Millennials, accounting for 32% and 30% respectively.

- Inclusivity is important to social shoppers. 60 % of respondents said they are more likely to shop with brands that are more inclusive, such as those that show recognition of different races, ethnicities and genders in advertising and information feeds. Such inclusivity is especially important to younger shoppers, with 73% of Gen Z and 72% of Millennials saying they will consider this as a factor in their purchasing decisions.

-Friends ’ opinions have an influence on consumers’ purchasing decisions. Friends’ recommendations and suggestions rank high in influence among all age groups, especially for consumers aged 18-40, where they are the main source of influence in determining consumption.

Jamie Gilpin, chief marketing officer at Sprout Social , said : " According to the survey results, social commerce allows brands and sellers to take advantage of opportunities to build powerful and frictionless connections with customers. Since most consumers plan to make purchases on social media this year, brands that make social commerce a key part of their omnichannel strategy can more effectively stimulate consumer interest and help drive revenue. It can also provide a strong customer base to support e-commerce market competition after 2022. "

Social e-commerce is expected to continue to develop in the next few years. Sellers can consider the layout of social e-commerce based on the results of the report, and use the traffic pool of social e-commerce to expand their customer base and increase exposure.

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