Why Social Commerce Is Growing Faster Than Ecommerce
Social media is one of the great tech phenomena of our times. Over the past two decades, it has transformed how we communicate, how we interact, how we access information online and much more besides, with huge real-world ramifications – both good and bad.
Increasingly, social media is also transforming how we shop. The relationship between social platforms like Facebook, Instagram, Twitter/X etc and retail goes back a long way. Businesses were quick to cotton on to the possibilities social media opened up in marketing and promotion. Likewise, social users were quick to appreciate how handy the new media was for discovering and learning about brands, goods and services.
But in the last year or two, the social media-retail relationship has entered a new phase. Social consumers are now not just browsing for interesting things to buy on social media. They’re making the purchases right there in the platforms. We call this social commerce. And it’s a trend that is shaking up the whole of ecommerce as we know it, to the benefit of smaller retailers in particular.
In this article, we explain why, what you need to know about social commerce, and where you can get started.
What is Social Commerce?
Like so many digital retail trends in recent years, social commerce has gone from a fairly under-the-radar niche concept to a red-hot market in no time at all. UK retail sales through social platforms reached £7.4bn in 2024, and are forecast to more than double to £16bn by 2028.
To put that in context, although the total value of all digital retail is currently more than 10 times higher, ecommerce sales are predicted to see year-on-year growth of just 4% to the end of the decade.
At a time when total retail sales are all but flatlining, social commerce offers a rare promise of robust and sustained growth. But why?
Social media is where your audience is
There’s an old saying in retail that you have to go where your customers are. And there’s nowhere better to find would-be customers than social media. Just under 80% of the UK population uses social media. And 69% of people say they have purchased a product they saw on social media. That’s a huge ready-made market to tap into.
Everything all in one place
The reason social commerce can offer such a large ready-made market is that social media isn’t only (or even primarily) set up for retail. First and foremost, people use social media for entertainment, to stay in touch with family and friends, and to keep up with events and trends. And they had a long-established relationship with social media well before social commerce was a thing.
The ability to shop on social media is a bonus. And it creates a novel and unique retail experience. In every other retail context, if you want to buy something, you have to go to a specific place set aside for retail purposes, be that a physical shop or an ecommerce site. Social commerce is ripping up the rulebook on that, making it possible to chat, share, catch up, watch, read and shop, all in the same place.
Speed and convenience
That everything-in-one-place vibe is also very convenient for shoppers. You don’t have to interrupt your browsing and head elsewhere to buy. That convenience also extends to the fact that the entire shopping journey can now be completed on social media. As we’ve said, social platforms have long been popular for product discovery, with two in five social media users saying they regularly learn about new products and services on social media. Shoppable content turns a recommendation from a friend or an endorsement by a favourite influencer into an instant impulse purchase opportunity. One minute, you’re watching a creator you follow telling you all about a great new beauty product or video game or DIY hack. The next you’re hitting the confirm order button in checkout.
Influence and trust
The role of influencers and recommendations is another unique aspect of social commerce. And their importance cannot be understated. They bring what we call social proof to the shopping experience. Social proof is the idea that people are more likely to buy something based on other people’s recommendations, because it reassures them that there’s value in the product or service. It’s why user reviews have become so important in marketing. And it’s also why influencer marketing works. People identify with and trust the people they follow on social media. If they recommend something, people listen. And as we’ve seen, with shoppable content, people can act on the recommendation there and then.
Small businesses can punch above their weight
Access to markets is a big deal for small digital businesses. You can get that via marketplaces like Amazon, eBay, Etsy etc, but at the expense of losing control of the ‘brand experience’ – regardless of who the actual vendor you’re purchasing from is, buying on Amazon is buying on Amazon.
Social commerce is a much more direct route to market for SMEs. You can maintain a direct relationship with customers and a stronger sense of identity. The influence-social proof axis also levels the playing field in terms of visibility and promotion. It’s not all about advertising spend and sponsored listings. With a good product and an engaged audience, even the smallest startups can ‘go viral’, as this list of impressive success stories shows.
TikTop Shop and Other Social Platforms to Consider
So, if you want to get started with social commerce, which platforms should you be looking at?
TikTok Shop
There’s no doubt that the biggest buzz in social commerce right now is around TikTok Shop. In fact, since it relaunched its second version of its commerce platform in 2023, it’s fair to say that TikTok has transformed the face of social commerce. Within two years, TikTok Shop’s UK arm alone has attracted more than 200,000 vendors, with a 131% year-on-year growth in customer numbers and a 180% increase in revenues.
TikTok Shop’s success comes down to the fact that it offers a complete commerce experience that is user-friendly and flexible for vendors and customers alike. As a business, a TikTok Shop account gives you a full digital storefront for listing your product range. You then get to market those products in creative and entertaining ways that resonate with audiences, whether that’s via branded videos, live sessions, or influencer partnerships.
TikTok smooths the road at every step. It has a dedicated influencer partnership scheme for matching brands with the right creators. You can build and run special promotions like sales events or discount codes. TikTok also handles all payments in-app. And it even has its own fulfilment service, which is a huge benefit to small businesses.
There are things to consider before taking the leap with TikTok. It definitely leans towards certain sectors and certain demographics. It will surprise no one to learn that more than half of TikTok’s UK users are under the age of 34. So there is definitely more of an incentive to consider it if you are targeting a younger audience. That said, a third of TikTok users are now aged between 35 and 54. So don’t discount it entirely if your brand leans towards a more mature audience.
In terms of sectors, fashion and beauty stand out as the biggest markets on TikTok Shop. But that’s also true of social commerce in general. Especially with the growth in video, social media has become an increasingly visual medium. And that means social commerce lends itself to visual brands that benefit from strong visual storytelling. And that’s not just relevant to fashion and beauty. CPG brands in general perform well on TikTok Shop. As do digital and electronics brands.
One final thing to consider with TikTok Shop is the fact that it is exclusively a video-based platform. If you want to sell on TikTok, you therefore have to get into creating video content. While this is a good idea in general – video gets double the engagement rates of any other type of content on social media, plus higher conversion rates – it is a leap if you have no experience of making video content.
Instagram Shopping and Pinterest
The most obvious alternative to TikTok Shop is Instagram Shopping. Instagram is still a bigger platform than TikTok in terms of user base. Instagram Shopping includes similar features to TikTok Shop, such as the option to create an in-app storefront listing all your products and run livestream shopping events. A key difference is that you can use ‘buy now buttons’ to make any mention of a product in content anywhere on the site ‘shoppable’. That applies to video, images and text. And means you can make customer endorsements and posts ‘shoppable’, not just your own brand content.
Another option to consider is Pinterest. Pinterest has a notably smaller user base than either TikTok or Instagram. But it was an early innovator in social commerce, introducing ‘shoppable pins’ on the back of establishing itself as a popular platform for design-focused peer-to-peer sharing and inspiration. With 16 million active users in the UK, impressive subscriber growth and an expanding range of commerce features, what’s perhaps most interesting is how heavily Pinterest’s user base now skews towards Gen Z. That positions it as the image-focused equivalent of TikTok, with Instagram straddling both media.
Learn more from a London Social Media Agency
Having already transformed the world of digital marketing, the smart money is on social media doing the same to ecommerce in the coming years. With eye-catching growth forecasts, innovative shopping experiences that consumers love and real opportunities for savvy small businesses to make their digital fortunes, the time is ripe to explore what social commerce can do for your business.
With proven expertise in social media brand management and marketing, as well as in ecommerce development and strategy, Key Element is the perfect partner to help you make the most of this exciting channel. Get in touch with our team and increase your chances of success with a leading social strategy agency.
Frequently Asked questions
How is social commerce different from social media marketing?
Social media marketing promotes products and drives awareness but usually sends customers elsewhere to buy. Social commerce, on the other hand, integrates the final purchase directly into the platform, turning Instagram, TikTok, or Pinterest into fully-fledged shopping channels.
What makes social commerce attractive to small businesses?
It levels the playing field. Unlike marketplaces like Amazon, where brand identity is diluted, social commerce lets SMEs maintain direct customer relationships. Plus, influencer-driven promotion means a great product and engaged audience can go viral without massive ad spend.
TikTok Shop only for younger audiences?
Not entirely. While over 50% of TikTok’s UK users are under 34, around one-third are aged 35–54. If your products appeal to younger audiences or thrive in visual formats, TikTok is a great fit—but it’s not exclusively youth-focused.
Do I need to create video content to succeed in social commerce?
Video is increasingly essential especially on TikTok, where all content is video-based. Video outperforms other media in both engagement and conversions, so if you’re serious about social commerce, investing in video content creation is highly recommended.
How does social commerce compare to selling on marketplaces like Amazon or Etsy?
Marketplaces offer scale but dilute brand identity. Social commerce gives businesses control over branding and storytelling while still reaching massive audiences. It’s more personal and interactive, often leading to stronger loyalty.
Do small businesses need a big budget to succeed in social commerce?
Not necessarily. Creativity, authenticity, and smart influencer partnerships often outperform expensive ad campaigns. Many small brands have gone viral with minimal spend by leveraging relatable content and community-driven engagement.
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