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Social Commerce: The Hottest New Way to Sell Products and Services

by Colling Media - October 23, 2023

What is Social Commerce?

Social commerce is the fusion of social media and e-commerce, allowing businesses to sell products and services directly on social platforms. With global social commerce sales hitting $527.8 billion in 2022 and projected to reach $1.2 trillion by 2025, it’s more relevant than ever.

Why is Social Commerce Important?

Social commerce is crucial because it enables businesses to meet customers where they already spend time: on social media platforms. With billions of active users, these platforms provide a fertile ground for personalized shopping experiences and relationship-building with consumers.

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The Benefits of Social Commerce for Businesses

Increased Brand Awareness

Being active on social media platforms like Instagram or Facebook allows for direct interaction with potential customers, expanding your brand’s reach and narrative.

Higher Conversion Rates

Features like shoppable posts and in-app checkouts simplify the buying process, leading to higher conversion rates. Companies like Nike have witnessed a direct sales increase from such features.

Reduced Marketing Costs

Leveraging social media for targeted advertising can significantly reduce overall marketing spend. Brands like Fashion Nova have grown primarily via social commerce, circumventing expensive traditional advertising channels.

Improved Customer Service

Social media platforms offer a direct line to your customer, facilitating real-time responses to queries and concerns, and elevating the customer service experience.

Metrics to Track in Social Commerce

Customer Acquisition Cost (CAC)

Understanding how much it costs to acquire a new customer through social commerce is crucial for measuring the effectiveness of your campaigns. A lower CAC generally means a more efficient strategy.

Customer Lifetime Value (CLV)

CLV helps you understand the long-term value each customer brings. It’s essential to compare CLV to CAC to ensure that you’re generating a positive return over time.

Conversion Rates

Monitoring how many users complete desired actions (like making a purchase or filling out a form) shows the efficiency of your social commerce initiatives.

Engagement Metrics

Likes, shares, and comments can be early indicators of a campaign’s success, providing insights even before sales numbers come in.

Industry-Specific Insights for Social Selling


In the healthcare sector, social commerce often leans towards informational content that educates the audience. Patient testimonials, expert interviews, and interactive Q&A sessions can be effective in building credibility and trust. Here, the focus is often on community management and building long-term relationships rather than quick sales.

Fashion and Lifestyle

Fashion businesses benefit significantly from visual platforms like Instagram and Pinterest. Influencer partnerships, shoppable posts, and style guides are effective methods to showcase products. Customer-generated content, like tagged photos wearing the brand, can also serve as authentic endorsements.

Technology Sector

For tech companies, particularly those in the SaaS or hardware spaces, social commerce can involve a blend of educational and promotional content. How-to videos, product demos, and customer testimonials can make complex products more approachable. LinkedIn can be a vital platform for B2B tech sales, offering a space for in-depth articles and professional networking.

Food and Beverage

In this industry, visually appealing images and videos of food products can drive impulse purchases. Limited-time offers and flash sales promoted through social media can be particularly effective. User-generated content, such as recipes using the product, can create community engagement.


Virtual showrooms and live video launches have become increasingly popular in the automotive industry. Social commerce strategies often focus on driving potential customers to book test drives or sign up for updates. User-generated content, like owners showing off their cars, can also be highly effective.

Real Estate

For real estate, virtual tours and live Q&A sessions about property listings can engage potential buyers. Instagram Stories or Facebook Live can be used to showcase properties, and Pinterest boards can offer home decor or neighborhood insights. Social media advertising can be geo-targeted to reach potential customers in specific locations.

Travel and Tourism

Travel businesses often use breathtaking visuals and user-generated content to entice potential travelers. Exclusive deals, often time-sensitive, can be promoted via social media channels to drive quick conversions. Customer reviews and testimonials add a layer of trust.


Retailers often use social commerce for flash sales, new product launches, and exclusive promotions. Customer reviews, unboxing videos, and user-generated content displaying purchased products can significantly influence potential buyers. Augmented reality features, like virtual try-ons, can enhance the online shopping experience.


Educational institutions and e-learning platforms can benefit from webinars, expert talks, and alumni testimonials. Here, the focus is often on long-form content that offers real value to the audience. Facebook groups or LinkedIn communities can serve as platforms for extended engagement and discussions.

Financial Services

In a sector where trust and credibility are paramount, educational content often takes center stage. Live Q&A sessions about financial planning, customer testimonials about positive investment outcomes, and easy-to-digest educational videos can serve as the backbone of a social commerce strategy.

How to Create a Social Commerce Strategy

Creating a social commerce strategy involves more than just setting up shop on social media platforms. It requires thoughtful planning, execution, and ongoing optimization. Here’s how you can go about it:

Step 1: Identify Your Target Audience

Conduct Market Research

Use surveys, questionnaires, and existing customer data to understand who your potential buyers are.

Create Customer Personas

Develop detailed customer personas that include demographic information, interests, pain points, and buying behavior.

Identify Customer Touchpoints

Where does your audience hang out online? What are their favorite social media platforms? Knowing this can guide your platform selection and content strategy.

Step 2: Choose the Right Social Media Platforms

Determining the “best” social platforms for social commerce largely depends on your target audience, product type, and business goals. However, some platforms are generally more conducive to social commerce because of their user base, features, and engagement metrics. Here are some commonly used platforms for social commerce:


Best for: Fashion, beauty, lifestyle, luxury, and visual products

Features: Shoppable posts, Instagram Stories, IGTV, Reels, Instagram Checkout

Why it’s effective: High engagement rates, visual nature of the platform, and a user base that is accustomed to discovering new products


Best for: Almost any industry; B2C and B2B

Features: Facebook Shop, Marketplace, shoppable posts, dynamic ads

Why it’s effective: Massive user base, robust advertising platform, and ability to create highly targeted campaigns


Best for: Fashion, home decor, food, and anything that benefits from visual discovery

Features: Buyable Pins, Shopping Ads

Why it’s effective: Users often use Pinterest for inspiration and planning, making them more receptive to purchase suggestions


Best for: Consumer goods targeting a younger audience, trendy products

Features: Shoppable ads, live shopping, “Shop Now” buttons

Why it’s effective: High visibility due to algorithmic content discovery, younger user base eager to engage with brands


Best for: Fashion, beauty, and lifestyle brands targeting a younger audience

Features: Shoppable ads, Shop and Cop, AR try-ons

Why it’s effective: Unique ad formats and a user base that is receptive to new trends


Best for: B2B, Software, professional services

Features: Sponsored Content, Lead Gen Forms

Why it’s effective: Professional audience looking for industry insights, making them receptive to B2B solutions

X (Twitter)

Best for: Tech, media, and products that benefit from real-time marketing

Features: “Buy Now” buttons (limited use)

Why it’s effective: Real-time engagement and the ability to jump on trends quickly

Step 3: Create Engaging Content

Creating engaging content is a cornerstone of a successful social commerce strategy. Not only does it attract new customers, but it also helps to retain existing ones. Below is a more detailed look at how to go about this vital step.

Content Calendar

Planning is key to ensuring a steady stream of relevant, high-quality content. A content calendar helps you to:

Organize your posts around key dates, holidays, or events relevant to your industry. For example, a fashion brand might ramp up posts around Fashion Week or seasonal changes.

Balance different types of content to keep your audience interested. For instance, a tech company could alternate between product announcements, how-to guides, and customer testimonials.

Content Types

Different content types appeal to different audience segments and serve various purposes. Here are some formats you might consider:

Blog Posts: Useful for in-depth explanations or guides. For example, a skincare brand could publish articles about skincare routines for different skin types.

Videos: Great for demonstrations or storytelling. A fitness brand, for example, might post short workout videos or transformation stories.

Infographics: Ideal for sharing statistics or other data-driven information. A financial services company could share infographics about investment trends.

Podcasts: Effective for thought leadership and deep dives into topics. An educational platform might host expert interviews discussing the future of e-learning.

Engagement Strategies

Here are some ways to make your content more interactive:

Quizzes: These can be both fun and informative. A beauty brand might create a “Find Your Perfect Skincare Routine” quiz.

Polls: These are quick and easy ways for users to engage with your content. A coffee shop could use polls to decide on a new seasonal flavor.

Challenges: These can create a sense of community and virality. For example, a fitness brand might initiate a 30-day workout challenge, encouraging users to share their progress.

Step 4: Use Social Commerce Features

Shoppable Posts

Platforms like Instagram offer shoppable posts where users can buy directly. Make sure to utilize these features to shorten the customer journey.

In-App Checkouts

Some social media platforms allow for in-app checkouts, making it even easier for customers to purchase without leaving the app.

Instagram: Instagram’s Shopping feature allows businesses to create shoppable posts where users can buy products directly within the app.

Facebook: Facebook Shop and Facebook Marketplace also offer in-app checkout features. Businesses can set up a digital storefront, and users can complete purchases without having to navigate to an external website.

Pinterest: Buyable Pins allow users to purchase products directly through Pinterest’s app.

Snapchat: Snapchat’s “Shop and Cop” feature allows users to shop within the app, although it’s primarily used for limited-time sales events.

TikTok: TikTok has been rolling out features like “TikTok Shopping” to enable in-app purchases. They have been partnering with e-commerce platforms like Shopify to facilitate this.

X: X has experimented with “Buy Now” buttons and in-app shopping features, although as of my last update, this was not widely rolled out.

Step 5: Promote Your Social Commerce Pages

Organic Growth

Use SEO best practices, hashtags, and community engagement to grow your audience organically.

Invest in social media ads to target specific segments of your audience. Platforms offer robust targeting options including location, age, interests, and more.

Influencer Partnerships

Collaborate with influencers who align with your brand to reach a broader, yet targeted, audience.

Step 6: Implement Analytics and Reporting

KPIs and Metrics

Decide on the key performance indicators (KPIs) that are most relevant to your business goals. This could include metrics like engagement rate, click-through rate (CTR), and return on ad spend (ROAS).

Reporting Tools

Use analytics tools like Google Analytics, Facebook Insights, or custom dashboards to track your performance. Regularly review these metrics to understand what’s working and what needs adjustment.

Step 7: Ongoing Optimization

A/B Testing

Continuously test different elements of your strategy, from ad copy to landing pages, to find what resonates most with your audience.

Customer Feedback

Keep an open channel for customer feedback and reviews. This real-world data can provide valuable insights for optimization.

Seasonal and Event-based Adjustments

Your strategy should be dynamic enough to adapt to seasonal trends, holidays, and events that are relevant to your industry.

Tips for Selling Products and Services on Social Media

Selling on social media is an art and a science, blending creativity with analytics to create compelling campaigns that drive results. Below are some key tips to help you excel in this endeavor:

Use High-Quality Visuals


Invest in high-quality photography that showcases your products in various settings and from multiple angles. These images should reflect your brand’s aesthetic and speak directly to your target audience.


Videos can be an excellent way to demonstrate how a product works or to showcase it in action. Short, engaging videos often perform well on platforms like Instagram and TikTok.

Write Clear and Concise Descriptions

Features and Benefits

Detail the unique features of your product or service and explain how they solve a problem or fulfill a need for your target audience.

Calls to Action (CTA)

Every post should include a compelling CTA like “Shop Now,” “Learn More,” or “Swipe Up” that encourages the user to take action.

Offer Competitive Pricing and Discounts

Limited-Time Offers

Flash sales or time-sensitive discounts can create a sense of urgency that encourages immediate action.

Bundle Offers

Consider offering product bundles at a discounted rate. Not only does this increase the average order value, but it also provides an opportunity for customers to try multiple products.

Simplify the Checkout Process

One-Click Purchase

The fewer steps a customer has to take to complete a purchase, the better. Platforms like Instagram offer one-click purchase options that streamline the process.

Payment Options

Offer multiple payment options, including digital wallets like Apple Pay or Google Pay, to make the transaction as convenient as possible for the customer.

Provide Exceptional Customer Service

Live Chat Support

Offer real-time customer service via live chat. This can answer any questions and resolve issues, reducing cart abandonment.

FAQ Sections

Have a readily available FAQ section that addresses common questions and concerns about your product, shipping, and returns.

Leverage User-Generated Content

Customer Reviews and Testimonials

Encourage satisfied customers to share their experiences. Highlight these testimonials in your social media feeds and stories.

Customer Photos

Invite customers to share photos of themselves using your product and feature these on your social media. This not only acts as social proof but also engages your community.

Seasonal and Event-Based Campaigns

Holiday Specials

Capitalize on holidays and seasonal events to offer special promotions. Tailor your product offerings and advertising campaigns to fit the theme of the season.

Trend-Based Campaigns

If your product aligns with a current social or cultural trend, leverage this in your social media campaigns to tap into existing public interest.

Case Studies of Businesses Successfully Using Social Commerce

Real-world examples provide invaluable insights into the potential of social commerce. 

Gymshark: Fitness Apparel Revolution

The Challenge

Gymshark started as a small fitness apparel brand aiming to break through a saturated market.

The Strategy

Embracing Instagram early on, leveraging the power of shoppable posts and influencer partnerships. Content focused on the lifestyle around fitness, rather than just the apparel.

The Outcome

Gymshark grew from a small startup to a billion-dollar brand within a decade. Their Instagram-based social commerce strategy was central to this meteoric rise.

Warby Parker: Simplifying Eyewear Purchase

The Challenge

The eyewear industry is often considered traditional, requiring in-person fittings and trials. Warby Parker aimed to change the way customers shop for glasses.

The Strategy

Utilizing Facebook Messenger to offer real-time customer service, simplifying the purchase process, and developing a virtual try-on feature integrated into their social media platforms.

The Outcome

Warby Parker not only made the eyewear shopping experience more convenient but also built trust, resulting in increased sales and customer loyalty.

Sephora: Beauty Community Building

The Challenge

Sephora, a beauty retailer, aimed to foster a community around their products and elevate customer engagement.

The Strategy

Encouraged customers to share makeup looks on social media, linking each look to the products used. Additionally, Sephora invested in a strong influencer marketing program.

The Outcome

This approach not only drove sales but also turned the customer base into brand ambassadors, significantly amplifying their reach and credibility.

Airbnb: Turning Stays into Experiences

The Challenge

Airbnb wanted to stand out in a crowded travel and lodging market by offering unique experiences in addition to stays.

The Strategy

Used visually appealing storytelling on platforms like Instagram and Pinterest to showcase not just listings, but also the experiences that come with them. User-generated content played a crucial role, with travelers sharing unique experiences.

The Outcome

Airbnb managed to create an emotional connection with its audience, driving more bookings and expanding its market share.

LEGO: Engaging the Young and the Young-at-Heart

The Challenge

LEGO aimed to engage both a young audience and adult fans, which is a challenging balancing act.

The Strategy

It turned to platforms like Instagram and YouTube to showcase creative LEGO builds and even run contests. The brand also made use of user-generated content, encouraging fans to share creations.

The Outcome

LEGO successfully engaged multiple demographics, driving sales and fostering a vibrant community around its brand.


The Future of Social Commerce

The landscape of social commerce is continually evolving, thanks to emerging technologies like AI, blockchain, and machine learning. These advancements are making the shopping experience more interactive and personalized than ever before.

Advice for Marketers

With social commerce becoming an industry necessity, now is the time to adapt, optimize, and conquer. The revolution in online shopping spearheaded by social commerce is not just a fleeting trend but a fundamental shift in retail dynamics. As technology advances, social commerce will become more sophisticated, offering unparalleled growth opportunities.

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