Introduction

Social commerce is the practice of selling products or services directly on social media platforms, such as Facebook, Instagram, Pinterest, Twitter, and WhatsApp. Social commerce allows consumers to discover, browse, and purchase products without leaving the social media app or website. Social commerce is a growing trend in the e-commerce industry, as it offers convenience, personalization, and social proof for online shoppers.

In this report, we will analyze the top segments in social commerce based on their market size, growth rate, and consumer behavior. We will also provide some recommendations for marketers who want to leverage social commerce to increase their sales and brand awareness.

Top Segments in Social Commerce

The following table shows the top segments in social commerce based on their global market size in 2022, according to Statista¹.

Segment	Market Size (in billion U.S. dollars)
Fashion and accessories	263.5
Beauty products	129.8
Home and living	86.9
Electronics	66.9
Food and beverages	32.4

The fashion and accessories segment is the largest and most popular segment in social commerce, accounting for more than a third of the global market. This segment includes clothing, footwear, jewelry, bags, and other accessories that consumers can buy from social media platforms. Fashion and accessories are well-suited for social commerce because they are highly visual, expressive, and influenced by social trends and recommendations.

The beauty products segment is the second-largest segment in social commerce, comprising cosmetics, skincare, haircare, fragrances, and other personal care products. Beauty products are also very visual and influenced by social media influencers, celebrities, and peers. Consumers can use social commerce to discover new products, watch tutorials and reviews, and get personalized recommendations based on their preferences and skin types.

The home and living segment is the third-largest segment in social commerce, encompassing furniture, decor, appliances, bedding, lighting, and other items that consumers can use to furnish and decorate their homes. Home and living products are appealing for social commerce because they can showcase different styles, themes, and inspirations for consumers who want to create their ideal living spaces. Consumers can also use social commerce to get tips and advice from experts and other homeowners.

The electronics segment is the fourth-largest segment in social commerce, including smartphones, tablets, laptops, cameras, headphones, speakers, gaming consoles, smartwatches, and other devices that consumers can use for communication, entertainment, work, or education. Electronics products are attractive for social commerce because they can demonstrate their features, functions, and benefits through videos and live streams. Consumers can also use social commerce to compare prices and specifications of different models and brands.

The food and beverages segment is the fifth-largest segment in social commerce, involving groceries, snacks, drinks, prepared meals, and other edible items that consumers can order online and have delivered to their homes or offices. Food and beverages products are suitable for social commerce because they can appeal to consumers’ senses, tastes, and cravings through photos and videos. Consumers can also use social commerce to discover new cuisines, recipes, and restaurants and get recommendations from friends and influencers.

Analysis

Social commerce is a fast-growing phenomenon that is expected to reach $2.9 trillion in global sales by 2026². The growth of social commerce is driven by several factors, such as:

• The increasing penetration and usage of social media platforms and mobile devices among consumers worldwide.
• The rising demand for convenience, speed, and simplicity in online shopping and payment processes.
• The growing influence of social media on consumer behavior, preferences, and decision-making.
• The expanding variety and availability of products and services that can be sold and bought through social media platforms.
• The improving functionality and innovation of social media platforms to facilitate social commerce transactions, such as shoppable posts, stories, live streams, chatbots, augmented reality, and artificial intelligence.

However, social commerce also faces some challenges and limitations, such as:

• The lack of trust and security among some consumers who are wary of online frauds, scams, or counterfeit products.
• The difficulty of providing consistent and high-quality customer service and support across different social media platforms and channels.
• The complexity of complying with different regulations and standards regarding data privacy, consumer protection, taxation, and cross-border trade.
• The competition from other e-commerce platforms and channels that offer more features, options, or benefits for online shoppers.

Recommendations

Based on the analysis, we suggest the following recommendations for marketers who want to leverage social commerce to increase their sales and brand awareness:

• Choose the right social media platforms and segments that match your target audience, products, and goals.
• Create engaging and authentic content that showcases your products and brand personality and encourages social interaction and feedback.
• Collaborate with influencers and advocates who can endorse your products and reach a wider and more loyal audience.
• Provide seamless and secure shopping and payment experiences that minimize friction and maximize convenience and satisfaction.
• Monitor and measure your social commerce performance and customer feedback and optimize your strategies accordingly.

References

¹: Global social commerce market size 2022-2026 | Statista

²: 74 Social Commerce Stats Marketers Should Know in 2023 – HubSpot Blog