The rise of social commerce did not happen overnight. It comes from years of changing consumer behaviour and the emergence of new technologies. In Singapore, 72% of Gen Zers prefer to shop through an eCommerce store. With the growth of social commerce, we can expect more eCommerce stores to choose this platform to reach their target market too.
In this article, let’s talk about the emergence of social commerce as a channel for eCommerce store owners to explore and generate sales from.
The earliest instance we can recall of social media being used as an official sales channel is when Meta rolled out its Facebook Marketplace feature in 2016. This allowed individuals and brands to list their products and drive sales from the platform.
Over the years, social commerce has greatly changed. Other social media platforms introduced various opportunities for businesses to drive direct sales, opening the door to unlimited possibilities.
A previous report estimated that the social commerce industry in Singapore will have immense growth in the next five years and may even reach $6.99 billion by 2028.
With the number of eCommerce users in Singapore speculated to reach 4.8 million by 2025, now is the right time to start setting up your eCommerce store and use social commerce platforms.
eCommerce vs Social Commerce
Image Credit: TagShop
Before talking about social commerce, let’s differentiate eCommerce and social commerce. In its essence, these two concepts go hand-in-hand. In fact, eCommerce is an umbrella term for online shopping. Social commerce is merely part of it.
Let’s take a look at how these two differ.
| eCommerce vs Social Commerce | ||
| eCommerce | Social Commerce | |
| Platform | Uses own eCommerce store to sell products | Uses social media and its tools to sell products |
| Integration | Does not require third-party payment integration since they can accept payments directly | Products are simply showcased on the platform instead of completing the order |
| Content | The business owner has complete rights to the content of the store | Social commerce leverages user-generated content or influencer collaborations |
| Checkout | The store owner facilitates the entire process | The store owner can use integrated shoppable tools to complete the process |
| Product Discovery | Store owners need to invest in SEO, SEM, and social media marketing strategies to push their brand and products to customers | Products are delivered through social media and user-generated content, which improves product discovery |
In a way, social commerce can be considered an evolved version of an eCommerce store since it makes use of social integrations that deliver a better shopping experience. Because social commerce delivers better engagement, product discovery, and recommendations, many eCommerce store owners are taking notes and venturing into this channel.
If you are a business owner who would like to explore your options in social commerce, here are some of the benefits that might convince you:
- Reach a wider audience
- Create a seamless shopping experience
- Collect data on your audience
- Leverage user-generated content as social proof
- Gather customer feedback
Image Credit: Meltwater
Singapore is a tech-forward country that manages to keep up with the ever-changing digital world. As of 2024, there are 5.13 million social media users in the country, which proves that social networks play a vital role in the lives of Singaporeans.
The same study also reveals that 95.8% of users visit these sites regularly and as part of their daily routine. Many of their daily tasks are performed online. They use social media platforms to meet others, share knowledge, and have fun.
Image Credit: Meltwater
Thanks to social commerce, people no longer only use social media networks to connect with friends. It has turned into a platform for brands to build awareness and sell their products to an engaged audience.
Out of the different social platforms, Facebook, Instagram, and Pinterest innovated this feature. As other platforms have chimed in, let’s take a look at their features and which is best for your brand to use.
1. TikTok
Image Credit: SproutSocial
Despite being a new player in social commerce, TikTok has rapidly gained traction as a top platform among Gen Zers. TikTok joined the trend in 2021 by partnering with Shopify. The latter provided an in-app social shopping experience to users of the platform.
A 2023 study revealed that this age group prefer to use TikTok to shop instead of Facebook. Because of its vast audience, over 15 million businesses in Southeast Asia now use this platform to market to 325 million monthly users.
If you are interested in using TikTok to sell your products or services, you can start by signing up with a TikTok for Business account. This will allow you to add shopping tabs to your profile and even have a virtual storefront for users to explore.
One brand in Singapore that gained success through TikTok Shop is an eCommerce store called Mobot. The brand joined this platform in June 2022, which has led them to these wins:
- GMV: 30x
- Peak Viewers: >1900
- Most Expensive Item Sold: $2,994
2. Facebook
Image Credit: Meta
Facebook is among the innovators of social commerce, which proves why it is the preferred platform of one-third of social commerce buyers. Thanks to Shopify integration, users can automatically sync their products to Facebook and produce shoppable ads and posts. This process makes it convenient to bring their Shopify eCommerce store to Facebook shops.
You can easily set up a Facebook shop with a Facebook Business account. This gives you a fully customisable online store where you can showcase your products. Potential buyers can view variations of the product via Facebook and directly ask questions through Facebook Messenger. When they’re ready to buy, they can either use Facebook Checkout, which allows them to stay on the platform, or be redirected to your eCommerce store.
Shopping via this platform can be done through these features:
- Live Shopping: For years, people have used Facebook to post live videos intended for shopping. Taking inspiration from this, Facebook allows brands to tag products when doing a Facebook Live.
- Loyalty Programs: Facebook is also making it easier to recognise loyal customers by letting them earn rewards on the platform.
3. Instagram
Image Credit: Instagram
The third social commerce platform on our list is the Meta-owned, Instagram. Based on Instagram’s findings, 70% of shoppers find their next purchase via Instagram.
Through Instagram Shops, brands can showcase their products in the form of high-quality videos and images. The product catalogue can be showcased in the form of a customisable virtual storefront, each with a product page, pricing details, description, and media.
Brands can sell their products on Instagram Shops using these features:
- Shopping Tags: Products get tagged on the brand’s Instagram Stories and feed posts.
- Shop Tab: Users can browse, save, and purchase products tagged by influencers or shared by brands.
- Ads: Brands can publish Instagram Ads with Shop tab placements to allow users to tap to view the product’s description or be redirected to the storefront.
- Shop through DMs: Like Facebook, Instagram lets users shop directly through a direct message (or DM). They can also use this feature to ask questions and track their orders.
4. X
Image Credit: X
X (formerly Twitter) has 30.8% monthly users in Singapore. As a way of helping brands market to users during the pandemic, X offered a Shop Module and other eCommerce features. The Module allowed businesses to feature up to 50 products on its carousel along with information that led to their websites. They have also started to test shoppable ads in feeds.
The other features of Twitter Shops include:
- Shop Spotlight: Highlights five products on a profile
- Live Shopping: Allows real-time interactive shopping
- Product Drops: Create hype for upcoming releases
5. YouTube
Image Credit: Google
YouTube has also joined the social commerce bandwagon by offering these features to brands:
- Clickable product links
- Shoppable ads for direct purchases
- Shoppable Shorts
- Affiliate marketing
The platform banks on influencers and UGC to give brands a way to engage and connect with their audience, and ultimately drive sales.
6. Pinterest
Image Credit: Pinterest
Although Pinterest isn’t included in the top social media platforms that Singaporeans use in 2024, it still has a lot to offer as a social commerce platform. Around the world, over 456 million people use Pinterest every month to research products and find ideas.
The platform has started to offer merchants a chance to upload their product listings so they can reach their target customers.
Brands that explore social commerce as an extension of their eCommerce stores gain huge success in this strategy. If this is something you’re interested in exploring, it’s important that you up your game and use these trends to get noticed by your target audience:
User-Generated Content
UGC is a powerful tool in social media. In social commerce, however, it increases your social proof as it builds trust and authenticity in your brand. As shared in a survey, 46% of consumers in the US are more likely to trust a brand that their trusted content creator also reviewed.
Reposting and engaging with the UGC can also improve your brand awareness as your followers will be motivated to connect with you on a deeper level.
Influencer Marketing
Influencer marketing is a strategy that has seen huge success in recent years. Brands get the help of various types of influencers to help build credibility in their niche. As a result, they collaborate with the right influencers, who can help boost their popularity.
| Share of people who have purchased an item or product because it was endorsed by an influencer in Singapore as of May 2023 | |
| Yes | 50% |
| No | 49% |
| I don’t know what this means | 1% |
Data from Statistica
AR Experience
As Augmented Reality (AR) and Virtual Reality (VR) become mainstream, we can expect more people to gravitate towards this technology. One way that AR will be utilised is in social media, particularly social commerce.
Through this technology, users can get an AR experience via a filter on TikTok, Instagram, or Snapchat. This not only increases their chances for a sale, but it also helps brands learn more about their customers’ interests.
Video Content
Video continues to dominate in social media. This is why there is a huge trend for TikTok’s shopping experience since it allows them to utilise the platform to offer videos to potential candidates.
And with shoppable videos becoming common, you need to use a combination of strategies to ensure your audience sees your content.
Livestreaming
Live commerce is taking over the social commerce stage as more and more people opt for this strategy in shopping online. The livestream market is expected to reach $35 billion in the US before the year ends.
One perk of opting for this trend is that users can get real-time communication with the brand they are interacting with. This allows them to make a purchase right then and there.
eCommerce Store Trends
You can make the most out of your social commerce strategy by using these tips to help boost your engagement and loyalty with your audience. As these numbers for social commerce continue to grow, we can expect these platforms to roll out new features to enhance a shopper’s experience.
If you are looking for ways to augment your eCommerce store, try social commerce. It just might be the secret sauce you’re hoping to unlock to drive in more sales. Give us a call today to learn how we can help improve your eCommerce store via social media.
Frequently Asked Questions
What is an example of social eCommerce?
An example of social eCommerce is when a brand uses Instagram to sell products directly through shoppable posts. For instance, a clothing brand might post an image of a model wearing their latest outfit, and users can click on the tagged product within the post to view more details and make a purchase without leaving the Instagram app.
This integration of social media and eCommerce allows for seamless shopping experiences directly on the platform.
How many types of social commerce are there?
There are several types of social commerce, including shoppable posts, where users can purchase products directly from social media posts; livestream shopping, where products are showcased and sold in real-time video streams; social storefronts, which are dedicated online stores within social media platforms.
Influencer and affiliate marketing, where influencers or affiliates promote products and earn commissions on sales; and group buying, where users collaborate to purchase products at discounted rates. These various forms of social commerce illustrate the different ways social media platforms are being utilized for online shopping.
What is the best use of social commerce?
The best use of social commerce is to create a seamless shopping experience that leverages the power of social media engagement. This includes directly selling products through shoppable posts, where users can make purchases without leaving the app and using influencer marketing to reach targeted audiences with authentic recommendations.
Additionally, livestream shopping events provide real-time interaction and urgency, driving immediate sales. Ultimately, social commerce excels when it combines social interaction with convenience, making it easy for customers to discover, engage with, and purchase products within the social media environment.
The difference between social and eCommerce lies in their primary functions and how they facilitate transactions. eCommerce refers to the buying and selling of goods or services online through dedicated platforms like websites or apps, such as Amazon or Shopify. It’s a direct transaction-focused environment where customers visit to make purchases.
What is the difference between social and eCommerce?
Social commerce, on the other hand, integrates eCommerce into social media platforms like Instagram, Facebook, or TikTok. While eCommerce is centred around traditional online stores, social commerce blends social interaction with shopping, allowing users to discover, engage with, and purchase products directly within the social media platforms they are already using. This creates a more interactive and engaging shopping experience.
