Social commerce has been rising recently and is becoming an essential part of the e-commerce industry.
With the rise of social media and its impact on purchasing decisions, businesses need to stay ahead of the curve and understand the latest trends in social commerce.
This blog will explore the top trends to watch out for in 2023 to help businesses stay ahead and make the most of this growing opportunity.
From shoppable posts to conversational commerce, we will examine the key developments shaping social commerce’s future.
Social Commerce Market Statistics
The social commerce market has grown significantly and will continue to grow further in the coming years.
According to a report by Grand View Research, the global social commerce market was valued at USD 45.2 billion in 2020 and is expected to reach USD 143.4 billion by 2027, growing at a CAGR of 16.6% during the forecast period.
This growth around social commerce can be attributed to the increasing use of social media platforms for shopping and the growing trend of omnichannel retail.
In addition, the rise of influencer marketing and the growing popularity of live-streaming shopping are also contributing to the growth of the social commerce market.
The Asia-Pacific region is expected to be the fastest-growing market for social commerce, driven by the increasing adoption of mobile businesses and the growing number of internet users in countries such as China and India.
With these statistics in mind, it’s clear that social commerce is a market that businesses cannot afford to ignore and should consider incorporating into their e-commerce strategy.
Growth Of Social Commerce Trends
People spend hours on social media. It compelled the brands to be everywhere, especially on social media platforms, to conduct business successfully.
The growth of social commerce trends as unquestionable eCommerce industry strategies will continue in the years to come.
Speaking of statistics, since Gen Z spends 2x as much money shopping on social media as the average consumer, Instagram and Snapchat are leading the way in generating sales from this demographic. At the same time, Gen X is more likely to use Facebook.
Additionally, the popularity of user-generated content (UGC) and users’ dependence on and trust in it gave brands another justification for moving their marketing to social media.
In conclusion, you can look at a few social commerce examples to see how it is practical, alluring, and quickly generates brand conversions.
Top Social Commerce Trends For 2023
Though many social commerce trends are growing in the social commerce market, we have picked the ones that will give your business a significant boost.
Digital Avatars In Fashion Industry
Digital avatars in the fashion industry are emerging as a powerful social commerce trend for several reasons.
First, digital avatars allow customers to try on clothes virtually, providing a more convenient and interactive shopping experience.
It helps to reduce the barriers to purchase, such as sizing concerns and the hassle of returning items, making the shopping process smoother for customers.
Secondly, digital avatars can be integrated into social media platforms, allowing customers to share their virtual try-ons with friends and family, creating a more social and communal shopping experience.
It can increase brand awareness and drive sales through social media recommendations and peer-to-peer marketing.
Additionally, digital avatars can personalize the shopping experience, providing customers with recommendations based on their individual style preferences.
It can increase customer satisfaction and loyalty, driving repeat purchases and customer retention.
With these benefits, it’s clear that digital avatars are a trend to watch in the social commerce space, offering businesses a new way to engage customers and drive sales.
Visual Shopfronts On Instagram
Visual shopfronts on Instagram allow businesses to showcase and sell their products directly on the platform through an interactive, visually appealing interface.
This feature is handy for social commerce as it allows businesses to leverage the large user base and visually-driven nature of Instagram to drive sales and engagement with their customers.
The ability to tag products in posts, stories, and Reels and direct users to a seamless shopping experience makes it easy for customers to discover, interact with, and purchase products, which can lead to increased conversions and revenue.
Instagram’s sophisticated targeting and advertising options can also help businesses reach a wider audience, making it a valuable tool for social commerce.
Converting User-Generated Content To Shoppable User-Generated Content
Converting user-generated content (UGC) to shoppable UGC can boost a social commerce business in several ways:
- Increased Trust: Shoppable UGC allows customers to see products in real-world situations, providing authenticity and trust that can improve their confidence in the development and the brand.
- Increased Engagement: When customers can directly purchase products from UGC, it creates a more interactive and engaging experience, leading to increased engagement with the brand and its consequences.
- Increased Visibility: Shoppable UGC can be easily shared and reposted, expanding the brand’s and its products’ visibility to new audiences.
- Increased Sales: By making it easy for customers to purchase products they see in UGC, shoppable UGC can directly drive sales and revenue for the business.
Micro-Influencers
Micro-influencers are great for social commerce businesses because they offer several advantages over traditional influencer marketing campaigns.
They typically have a smaller but highly engaged following, making it easier for businesses to reach their target audience effectively.
Micro-influencers typically charge less than more prominent influencers, making them a cost-effective option for social commerce businesses.
They often have a more personal relationship with their followers, leading to higher levels of trust and authenticity in their recommendations, which can result in more conversions for the business.
Micro-influencers often specialize in a particular niche or subject, providing businesses with a highly-targeted audience for their products.
Frictionless Shopping Experience
A frictionless shopping experience is critical for the growth of a social commerce business as it significantly impacts the customer experience.
A frictionless experience eliminates barriers and makes the purchasing process simple for the customer. It includes reducing the number of steps involved in the checkout process, providing a seamless transition from browsing to buying, and offering various payment options.
A smooth and convenient shopping experience can result in higher customer satisfaction, increased conversions, and repeat purchases. Customers are more likely to return to a business that provides a positive shopping experience.
Additionally, a frictionless shopping experience also helps minimize shopping cart abandonment, a major issue in e-commerce.
If the purchasing process is too complex or time-consuming, customers may abandon their shopping carts and move on to another retailer. A frictionless shopping experience eliminates these obstacles and increases the chances of converting browsing into a sale.
Artificial Intelligence (AI) & Machine Learning (ML)
Artificial Intelligence (AI) and Machine Learning (ML) play a crucial role in the growth of social commerce businesses.
These technologies enable businesses to provide customers with a personalized and optimized shopping experience, leading to increased customer satisfaction and loyalty.
AI and ML can analyze customer behaviour and preferences and then use this data to make personalized product recommendations, provide relevant advertisements, and even automate customer service.
It results in a more relevant shopping experience for customers and can increase the chances of converting them into paying customers.
Moreover, AI and ML can help businesses to streamline their operations and increase efficiency. For example, they can automate routine tasks, such as product categorization and pricing optimization, freeing up resources and allowing businesses to focus on more strategic tasks.
They can also help businesses to identify areas where they can improve their operations and make data-driven decisions.
Live-Streaming
Live streaming is becoming an increasingly important tool for social commerce businesses to grow their reach and engage with customers in real time.
Live streaming offers a unique opportunity to showcase products, build brand awareness, and provide a personal and authentic connection with customers.
During a live stream, businesses can provide a behind-the-scenes look at their operations, answer customer questions, and showcase the features and benefits of their products.
It creates a more personal and engaging shopping experience for customers and can increase trust in the brand and its products.
Additionally, live streaming can drive sales by allowing customers to purchase products directly through the platform.
It makes it easier for customers to discover, learn about, and purchase products, resulting in increased conversions and revenue for the business.
Wrapping Up!
In conclusion, the social commerce space is rapidly growing, and businesses & brands must stay ahead of the curve to succeed in 2023 and beyond.
From the increased use of AI and ML to the rise of live streaming and the importance of a frictionless shopping experience, there are many trends to keep an eye on in the coming year.
Social commerce businesses that can effectively leverage these trends and provide a personalized, convenient, and engaging shopping experience for their customers will be well-positioned for success.
Additionally, businesses that can effectively utilize micro-influencers, convert user-generated content into shoppable content, and use visual shopfronts on platforms like Instagram will have a competitive edge in the market.
The social commerce landscape is changing rapidly, and businesses must adapt to stay ahead of the curve.
