Social Shopping on Facebook, Instagram, and YouTube in 2023

Social shopping is still in its infancy. But it’s unsurprising how it’s taking off so quickly. Statista said social shopping garnered approximately $475 billion in sales in 2020. This will grow at 28.4 percent YoY in sales, estimated at $3.37 trillion by 2028. Why should marketers do social selling? What is social shopping? Read on to find out.

What is social shopping?

Social shopping is a marriage of ecommerce and social media. Otherwise known as social commerce, social shopping lets consumers browse, shop, and buy products on social media channels. 

The projected social commerce sales will be around $531 billion in 2023. This ecommerce concept allows marketers to make their products shine and increase conversions. Social shopping involves creating social media content, directly promoting products to customers, and converting them.

Why are brands using social commerce?

Many brands promote their products and services on social media due to several benefits. Unlike traditional ecommerce, where brands sell products on their websites, social media selling is more intimate and personalized. Brands love marketing their offers on social media because these platforms are more engaging.

Moreover, brands see the potential for increased sales due to large social media bases or monthly active users. Selling on social platforms is less sales-pitchy than when selling them on your website. Most social media shopping features also offer exemplary user interfaces that cater to user experience. 

Finally, brands prefer social shopping because grabbing user attention on the right platforms is easy. Social shopping integrations make it easy for users to browse, choose, and check out a product without leaving the social platform. 

Ecommerce vs. social shopping: Pros and cons

Ecommerce and social commerce are two distinct approaches to online shopping. Ecommerce involves using dedicated online stores or marketplaces to buy and sell goods and services. On the flip side, social commerce leverages social media platforms to promote and sell products directly to customers. Read these pros and cons.

Pros of ecommerce:

• Broad reach: Ecommerce allows businesses to reach a global audience and sell products to customers worldwide.
• 24/7 availability: Online stores and marketplaces are always open, meaning customers can shop anytime, regardless of location or time zone.
• Convenience: Ecommerce makes it easy for customers to browse and purchase products from their mobile devices.
• Personalization: Ecommerce platforms can use data and analytics to provide customers with personalized product recommendations and targeted marketing campaigns.

Cons of ecommerce:

• Lack of personal touch: Online shopping can be impersonal, and customers may miss the tactile experience of seeing and touching products in person.
• Security concerns: Ecommerce transactions involve transferring sensitive personal and financial information, making them vulnerable to hacking and data breaches.
• More downtime: Technical hiccups are inevitable when using hosting services, possibly affecting sales.

Pros of social commerce:

• Social proof: Social commerce leverages social media platforms to showcase products and build trust through customer reviews and user-generated content.
• Targeted marketing: Social media platforms allow brands to target specific demographics and interests, increasing conversions.
• Immediate feedback: Social media provides instant customer feedback, allowing businesses to quickly address issues or concerns and improve their products and services.
• Viral potential: Social media can amplify the reach of products through likes, shares, and comments, potentially leading to viral marketing campaigns.
• Low barriers to entry: Social media platforms are generally free to use, making social commerce accessible to small businesses and entrepreneurs.

Cons of social commerce:

• Limited functionality: Social media platforms are primarily designed for social interactions, not ecommerce, which can limit the functionality and user experience for customers.
• Reliance on platform algorithms: Social media platforms use complex algorithms to determine which content is shown to users, making it difficult for businesses to predict and control their reach and engagement.
• Integration challenges: Integrating social commerce with existing ecommerce platforms can be difficult and time-consuming.

How Facebook social commerce works

Facebook offers Facebook Shops to allow brands to create a custom digital storefront. 

• Facebook Shops allows businesses to create an online store directly on their Facebook page.
• Businesses can customize their online shop with cover images and accent colors.
• Businesses can showcase their products with high-quality images and videos and organize them into collections.
• Customers can browse products, save items for later, and make purchases without leaving the Facebook app.
• Facebook Shops integrates with multiple payment processors, including Facebook Pay and third-party providers.
• Businesses can use Facebook’s advanced targeting capabilities to reach specific audiences with targeted product ads.
• Through the Commerce Manager dashboard, Instagram and Facebook shopping provides insights and analytics on product performance and customer behavior.
• Businesses can offer customer support through Messenger, integrated with Facebook Shops.

How Instagram social commerce works

Instagram Shop is similar to Facebook Shops. It’s a new and fun way to discover and buy products you’ll love. These products appear on Instagram Explorer and give your target audience an immersive storefront they’ll enjoy browsing. 

• Instagram Shopping enables businesses to tag their products in their posts and stories, making them shoppable.
• When users tap on a product tag, they can see more details about the product. They can be directed to the product page on the business’s website or to purchase the product directly within the Instagram app using Instagram Checkout.
• Instagram Shopping also allows businesses to create a shop section on their Instagram profile, where users can browse and purchase products without leaving the app.
• Businesses can also run ads featuring shoppable products to reach a larger audience and heighten sales.

How YouTube social commerce works

You must pass the eligibility criteria to promote products on YouTube Shopping. For one, your channel must have at least a thousand subscribers. Secondly, your channel must be approved for monetization. Check out the whole eligibility criteria here. 

• YouTube has added shopping ads to its platform, which allow businesses to showcase their products on the homepage, search results, and related video sections.
• Creators can use YouTube’s merchandise shelf feature to display their products below their videos and allow viewers to purchase them directly through YouTube.
• YouTube also offers Super Chat and Super Stickers, which allow creators to monetize their live streams by receiving payments from viewers in exchange for engaging with them.
• Businesses can use YouTube’s targeting capabilities to run video ads to specific audiences based on their interests, demographics, and online behavior.
• YouTube provides analytics and insights on video performance and audience engagement through the YouTube Studio dashboard.