Future Of Social Shopping In 2023

Social shopping is a combination of eCommerce and social media. Sales and advertisements are made through retail channels connected to social media profiles or followers’ feeds.

Even though social shopping is still in its infancy, one thing is for certain: it’s incredibly lucrative. Statista estimates that social commerce will generate $3.37 trillion in sales by 2028, growing at a 28.4% annual rate, up from $475 billion in sales in 2020.

Interesting numbers for sure! 

Let’s see more of these numbers and understand how the future of social shopping is going to pan out in 2023. But first let’s understand what is social shopping?

 

What Is Social Shopping?

The entire purchasing process that takes place on a social networking platform is referred to as social shopping. 

It captures the attention of shoppers, delivers concise new content that converts, and converts first-time buyers into recurring customers. 

Social shopping has fundamentally altered how companies and consumers interact. It’s a dynamic, engaging experience that replaces time-consuming, tedious transactions.

 

Marketers Need To Overcome The Trust Barrier

Smart marketers understand that the social commerce experience is about far more than just technical issues. 

To bridge the trust gap and convert skeptical shoppers into buyers, marketers must focus on the fundamentals: provide simple returns and refunds, display ratings and reviews from other buyers, and keep buyers updated on the status of their purchases throughout the customer journey.

So here’s the deal. When networks and vendors overcome the trust barrier, social shoppers become very loyal and dependable repeat customers.

According to, the average US social buyer will spend $518 through this channel in 2022, a 27% increase from last year. 

Over the next three years, annual spending per buyer will rise by $419, reaching $937 in 2025. And social commerce sales are increasing. Furthermore, social commerce sales growth is expected to remain above pre-pandemic levels until 2024.

So, yes, social commerce features are likely to be reduced in 2023. Many marketers and business owners will react instinctively and cease investing in their social storefronts.

However, it is far too early to interpret Facebook’s discontinuation of its live commerce feature or reports that TikTok is abandoning plans for livestream shopping in the United States as indicators of their overall social ambitions. 

Proactive brands will continue to see opportunities and they’ll enjoy seeing their competitors abandon social commerce plans early, leaving the playing field wide open for those with the patience to hang in there.

Purchasing Trends & Outlooks

Customers today are eager to test out new social media platform features. Customers connect in a variety of ways, providing businesses with insight into how people discover and purchase their brands. 

Livestreams are the most popular tool for social media targeting. 71% of live-stream viewers have made a purchase through social media, and 48% intend to make additional purchases through in-platform commerce tools.

By 2023, 45% of customers will prefer to purchase directly from their preferred platforms, but they will also prefer a more streamlined experience. 

Despite the fact that Gen Z is the most likely to use this feature, with 52% eager to buy, everyone expects a faster browsing and purchasing experience.

Meanwhile, with the rise of the metaverse, consumers can expect virtual or augmented reality shopping carts in the future. 

Customers’ willingness to adopt this trend, however, is determined by which generation they belong to. This trend is less likely to be followed by older customers. 

Early adopters, on the other hand, are willing to pay a premium for it. It’s also worth noting that more than 80% of consumers who use AR and VR on a regular basis have begun social shopping.

Major Change Coming

Social shopping differs from traditional eCommerce in that it incorporates buying and selling into everyday life, creating a genuine sense of community and connection. 

It aims to change the way people shop by allowing people to participate in the global economy in new ways as consumers, creators, influencers, and vendors. As a result, this change will have an impact on every business, brand, and platform.

Mobile-centric countries such as China and Brazil have surpassed Western Europe and North America in terms of social shopping adoption. 

Because the international consumer appeal is so strong, most countries—and platforms—are now vying for a piece of the action. 

Social shopping is a natural and integral part of the social media experience, and users expect their preferred platforms to provide it.

Consumers expect their preferred platforms to provide them with a streamlined shopping experience, and social shopping is an organic, integral part of the social media experience.

Furthermore, not only celebrities benefit from their social media notoriety and partnerships with major brands. 

Millions of creators, influencers, retailers, and resellers earn money through their favorite social platform. 

As social media sites compete for users, each platform offers creators incentives to increase their user base.

 

Wrapping Up!

When digital advertising growth is expected to slow, social shopping provides additional revenue sources for businesses, brands, and platforms. 

Retailers have the opportunity to provide new types of shopping experiences, connect creatively with customers, and engage influencers and creators. 

And, while social shopping is still in its early stages, businesses of all sizes must seize its opportunities as soon as possible.