Social commerce – what does it mean for e-commerce?

March 31, 2025

Erica

Social mediaWeb development

Social commerce, or “social trade,” offers a more convenient and interactive shopping experience—explaining why its popularity is on the rise.

What Is Social Commerce?

Social commerce is a revolutionary way to use social media platforms—such as Facebook, Instagram, Pinterest, and TikTok—to market and sell products and services. This sales model allows customers to complete purchases directly without ever leaving the social media app.

Social commerce keeps users engaged
Social commerce enables users to buy products within the social platform itself, without having to visit a separate e-commerce website. Online shopping thus becomes fully integrated into social media. Consumers can discover, browse, and purchase products—all without leaving the platform.

The difference between social commerce and e-commerce

  • E-commerce refers to the shopping experience that takes place on a website or within a brand’s own app, accessed via a URL in a browser on a desktop, tablet, or mobile device.

  • Social commerce is a subset of e-commerce where customers complete their purchases entirely within social media platforms. Here, they can search for products or services and buy them directly without leaving the app.

Native shopping tools and e-commerce integrations
To facilitate social commerce, platforms offer native shopping features like Facebook Shops and Instagram Shopping. These tools provide a seamless shopping experience by letting users browse and buy products directly within the social media app. Here’s a closer look:

  • Facebook Shops
    Lets businesses create a tailored online store accessible from their Facebook page and Instagram profile. Brands can customize their shop with various themes and showcase products in a visually appealing way. It also supports in-app checkout, reducing steps between discovery and purchase.

  • Instagram Shopping
    Allows users to discover and buy products directly from their feed, Stories, and the Explore page. Using “Shopping Tags,” brands can tag products in posts and Stories so users can tap to purchase without leaving Instagram. There’s also a dedicated Shopping tab for browsing products from multiple brands.

  • Pinterest Shopping
    Enables purchases directly from Pins. Brands can create “Product Pins” displaying price, availability, and description. Users tap the Pin to view the product page and complete the purchase.

  • TikTok Shopping
    Offers tools to create engaging, shoppable content directly in the app. Brands use “Product Links” in videos, letting users tap and buy without exiting TikTok. TikTok also partners with platforms like Shopify to streamline the process.

Integration with e-commerce platforms
To simplify product and order management, these native shopping tools often integrate with e-commerce platforms like Shopify, BigCommerce, and WooCommerce. These integrations sync inventory, manage orders, and consolidate sales data in one place. For example, when an item sells via Instagram Shopping, inventory automatically updates in the brand’s Shopify store—reducing oversells and easing stock control. They also offer advanced analytics to help brands understand customer behaviors and preferences, enabling optimized marketing strategies and better experiences.

E-commerce without a standalone store
You don’t need your own e-commerce website to use social media’s built-in selling tools. Brands can sell directly on any social platform. Many online retailers with existing e-commerce sites leverage social commerce by smoothly directing leads to their main website.

Why social commerce matters
Social commerce is a key evolution in e-commerce offering benefits for both consumers and brands:

  • Simpler, smoother shopping
    Integrating shopping into social media—where people already spend time—means fewer steps to purchase. Consumers discover, explore, and buy in one place, reducing friction and boosting completed sales.

  • Fewer abandoned carts
    In-app checkout cuts out redirects to external sites, lowering the chance users lose interest or get distracted mid-purchase, leading to higher conversion rates.

  • Greater engagement & loyalty
    Brands can interact directly via comments, DMs, and live streams—quickly answering questions, gathering feedback, and fostering personal connections that build trust and loyalty.

  • Social proof & influencers
    User reviews and influencer recommendations on social feeds provide powerful social proof. Influencer marketing amplifies awareness and interest by tapping into engaged audiences.

  • Personalization & targeted offers
    Social platforms collect rich data on user behavior and interests. Brands use these insights to deliver tailored offers, making shopping more relevant and compelling—driving higher order rates.

  • Growth potential & future opportunities
    With over 57% of the global population on social media—and that figure rising—social commerce has massive growth potential. Early adopters are well-positioned to capitalize on this trend. Projected North American social commerce sales of USD 80 billion by 2025 underscore its economic impact.

We can help!
Whether you need to build, expand, or integrate social commerce into your digital strategy, Buildahome is here to support you. Contact us to learn more!

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