Social commerce — selling products or services on social media platforms — is a marketing tactic that can boost retail revenue with relatively little effort without overly adding to the advertising spend.
This new retail strategy is attracting the attention of marketers. Social shopping grew 35 percent last year, with U.S. sales reaching about $38 billion. Market watchers expect that number to reach or exceed $50 billion by 2023.
Tapping into social commerce gives brands the ability to reach new audiences on platforms consumers already use and trust. Retailers find the social media outlets a no-brainer for direct selling because it streamlines the sales process and exposes brands to new purchases without having potential buyers leave the platform.
The trend of selling products directly from social platforms is being driven in part by shifts in users buying habits. Consumers for years used social media as an easy way to window shop. Similarly, retailers relied on social platforms to build awareness, community, trust, and influence.