The global social commerce market has surpassed $2 trillion, growing at a rate 2.3 times faster than overall digital commerce, according to a new report released jointly by VML and Spotify. The findings underscore a fundamental shift in consumer behavior, with over half of social media users – 52 percent – having already made purchases directly through social platforms.
The report, titled “Swipe, Click, Buy: What Today’s Shoppers Really Want,” identifies a trend toward “compressed commerce,” where consumers complete the entire shopping journey – from initial inspiration to final purchase – within a single platform. VML defines social commerce as a “full funnel arena,” driven by the convergence of influencer marketing, short-form video, live commerce, and native checkout functionalities. 58 percent of consumers surveyed indicated a preference for this integrated experience.
This shift is particularly pronounced among the 5.4 billion social media users worldwide. The report highlights that 46 percent of consumers have made purchases after viewing a live shopping stream, and an additional 46 percent intend to increase their social commerce spending. The market’s rapid expansion, growing fourfold since 2022, presents a significant opportunity for brands, with those failing to engage in social commerce potentially forfeiting $6 to $7 million in annual revenue, based on a $100 million annual revenue benchmark.
Facebook and Instagram currently lead as the most utilized social commerce platforms, each capturing 19 percent of the market share. TikTok follows closely with 17 percent, and YouTube accounts for 16 percent. These platforms also rank highly in consumer satisfaction, with Facebook (18 percent), Instagram (17 percent), and TikTok (17 percent) receiving similar scores for providing the best overall social commerce experience.
VML offers a suite of services designed to help brands optimize their social presence and establish themselves as leaders in the social commerce space. These services focus on creating connected experiences across various selling channels. The rise of social commerce is driven by a consumer demand for convenience and interactive shopping experiences, with predictions indicating that social networks will account for over 17 percent of all online sales by 2025, representing nearly $80 billion in US retail revenue.
The model relies on leveraging social graphs and content feeds to optimize the conversion funnel. Key components include social proof through follower networks and user-generated content, contextual product placement, and automated content-product matching. Native checkout and integrated payment systems further streamline the purchasing process, reducing friction and enhancing the user experience.
