Social shopping is a hybrid of e-commerce and social media. Advertising and sales are made through retail channels in relation to social media profiles or user information. In recent years, more and more social media platforms have developed into e-commerce businesses. The addition of tools such as small yellow cars and off-site links allows platform users to discover new products, learn about new brands and conduct business without leaving the social feed.

While social commerce is still in its early stages, one thing is for sure: it’s very lucrative. According to Statista, social commerce generated $475 billion in sales in 2020 and is expected to generate $3.37 trillion by 2028, an annual growth rate of 28.4%.

Social e-commerce redefines the way of traffic and shopping.

What differentiates social shopping from traditional e-commerce is that it integrates buying and selling into everyday life and creates a real sense of community and connection. It aims to transform the way people shop by allowing individuals to participate in the global economy in new ways as consumers, creators, influencers and suppliers. Therefore, every business, brand and platform will be affected by this change.

By comparison, social shopping is more “affordable,” UGC products are more likely to be convincing, and users trust recommendations from their friends and various product experts more than celebrities and big brands.

Social media has grown into a virtual mall where users can buy and interact with friends, brands and creators. Just like in traditional stores, the more time people spend reading items, the more likely they are to buy them. Generally, customers make purchases on platforms they are already familiar with and feel most comfortable with. Millennials and Gen Z generally prefer social media networks that focus on visual content, such as TikTok.

Livestreaming is the most popular way to shop on social platforms. A study found that 71% of viewers generated consumption on social platforms through livestreaming, and 48% of users even wanted to use the platform’s commerce tools to buy more products.

Social media platforms represented by TikTok are changing the shopping habits of users.

In 2020, the number of TikTok downloads has reached the highest level in the world. In the first quarter of 2022, the global monthly active users will be close to 1.6 billion. TikTok has become a popular social media platform in the world in just a few years, and its popularity has left many competitors unmatched. .

With the popularity of TikTok short videos and live around the world, product display has become more vivid and intuitive, lowering the decision-making threshold for consumers, and personalized recommendations based on content interests will become the market standard. The creators of short videos and live allow more high-quality products to be displayed in better content formats, and merchants have more opportunities to reach their fans through creators.

The closed loop of purchase consumption in app, short video/live + e-commerce model is gradually improving, and TikTok is affecting and changing the consumption habits of users around the world.