The stats speak for themselves: a recent study from Accenture predicts that social commerce will grow to $1.2 trillion by 2025. So, how can your small business or startup capitalize on that growth?

This article looks to answer that question. We'll outline the basics of social commerce and explain why its growth has accelerated in recent years. At the same time, we'll provide tips about how your business can make the most of the opportunity provided by this sales strategy.

What is social commerce?

Companies have long used social media as a marketing vehicle. However, social commerce goes a step beyond. Don’t stop by simply connecting with an audience or boosting your brand. Rather, the strategy involves leveraging social media as a way to sell directly to customers. In other words, the entire customer journey can take place as part of a social media experience.

[Social commerce] involves leveraging social media as a way to sell directly to customers.

To fully understand the approach, let's compare it to traditional eCommerce. That strategy, which has existed almost as long as the internet itself, used online resources to make sales. For instance, you might see a gadget you like on social media, then head to Amazon to buy it yourself. This process exemplifies traditional eCommerce, albeit with a social media dimension.

Social commerce completes this integration. When you see a gadget you want, you buy it directly through the social media platform. Marketing and sales (including processes like checkout and payment) happen within a single experience.

Why is social commerce growing?

Global social commerce revenue topped $700 million in 2022. Meanwhile, that figure is expected to rise dramatically in the near future — experts see a range measured in the multiple trillions of dollars by the end of the decade. In the U.S., the number of shoppers engaged in social commerce has jumped in recent years as well. The total climbed from around 60 million in 2019 to around 107 million last year.

The pandemic played a role in the recent acceleration in growth. With brick-and-mortar options closed during the depths of the COVID restrictions, consumers became more accustomed to other ways of buying. This set the stage for an upswing in social commerce.

Still, COVID only fueled a transition that was already underway. Part of this is generational, with younger consumers demanding a closer connection between social media and eCommerce. In this regard, the rise of influencer culture has contributed to the evolution of the space. For instance, one survey found that 43% of GenZ women have made a social commerce purchase, with about 37% of men saying the same thing.

All this wouldn’t be possible if there wasn’t a strong business case for the strategy. In that regard, the rise of social commerce has been spurred by the presence of certain inherent benefits. While it comes with some costs and challenges, a well-run operation in this area can lead to many upsides. Companies have eagerly turned to this strategy because it comes with advantages, like:

• Better targeting of your marketing efforts

• Minimization of sales friction

• Improved connection with your customers

• Enhanced data gathering

• Ability to become more responsive

How to get started with social commerce

Deciding to launch a social commerce initiative is just the first step. You also need to consider the details. Here are some tips to consider as you chart your path:

Get expert advice

When you start your social commerce project, you'll need to understand what's possible. This involves knowing what tools are available on various platforms. It's also important to research what kind of technology backbone you'll need to make the most of this.

Build internal competence

As you learn about social commerce, you can start by connecting with experts to jumpstart your process. Third-party partners can provide a helpful guide to the landscape. However, over time, you need to develop an internal knowledge base that you can leverage on an ongoing basis.

Once you have a clear direction for your social commerce operation, begin educating yourself and your staff about the details. From there, you can consider hiring specialists in the area to optimize your long-term investment.

Think about customer journey

Social commerce means integrating sales and marketing functions. You find customers on social media and have a process in place to immediately convert them to buyers. That means having a seamless connection at every step of the journey, from strong content on popular platforms to the right software for checkout to ongoing customer service.

Develop your overall social media presence

Work on perfecting the top end of your new sales funnel. Engaging, enticing content will bring prospective customers into your orbit. Then, your new social commerce structure can more easily convert them into buyers.

Consider partnerships

Social media, at its heart, runs on connectivity. Embrace that fact. Enhance your social commerce offerings with winning partnerships. This can include businesses with complementary products and services. It can also consist of finding influencers who have a close connection to your target audience.

Nurture a community

Social commerce gives you the opportunity to go beyond the sale. You can build a community of fans, as well as customers. Have structures in place to nurture lasting bonds with the people attracted to your brand.

Integrate into your overall sales operation

Any new initiatives you launch should complement your existing sales operations. Otherwise, you might end up cannibalizing your previous methods of attracting new revenue. Instead, closely integrate your social commerce strategy with your overall customer-acquisition organization.

Improve as you go

Developing a winning social commerce operation is an ongoing process. Track your progress, discover what works for you and adjust your approach as needed.

Beyond the larger structure to your social commerce effort, there's a smaller-bore question that should also receive significant attention in the planning stages: What specific platforms should you target? Here are some tips to choose the right partners for you:

• Look at the big social-media players: Start with the obvious. Look at what’s available through the largest names in the industry. A closer integration with platforms like Facebook, Instagram, Pinterest, Snapchat and TikTok can lead to new sales opportunities.

• Consider niche selections: Beyond the big names, there are a wide variety of other options available in the social commerce space. Familiarize yourself with these alternatives, seeking out less-obvious players as well. A few examples include Pinduoduo (a China-based online retailer), Verint (a consumer data analytics company), and Comment Sold (a provider of live selling technology that operates on platforms like Facebook).

• Have a broad approach: Don't become overly reliant on any single avenue. As you ramp up your social commerce abilities, expand your horizons, seeking out new places to engage potential customers.

Getting the most out of social commerce

Social commerce offers a tremendous opportunity. This is especially true for small businesses and startups looking to reach new customers, improve their customer journey, and increase sales through social media connections. It's just a matter of figuring out how to integrate this strategy into your existing operations.

Use the information provided here to get started. You can determine if pursuing social commerce makes sense for your business at this point in time. If so, you'll also have a foundation for getting started.