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Why 2023 will be the big year for social commerce

Social commerce has become increasingly popular since the pandemic. Here in the US, the sector experienced significant growth with almost all major technology companies announcing features. Viewers enjoy interacting with key opinion leaders and their favorite creators when making purchase decisions. If insights from the last two years are anything to go by, 2023 will be a massive bang for the sector.

Nearly two-thirds of consumers say they trust influencer recommendations compared to just a third who say they trust branded social media content. As interest in this new marketing trend continues to skyrocket, US livestream shopping sector is expected to reach about $35 billion by 2024. Social commerce sales (in general) are projected to climb to $80 billion dollars in the US by 2025.

Influencers are reinventing the shopping experience

Live stream commerce is helping improve the shopping experience for consumers across niches. This perhaps (best) explains why products that are showcased by influencers via live streams recorded conversion rates as much as 10x the conversion rates in conventional ecommerce. Creator marketing is making it possible for consumers to discover and purchase products in one medium without having to bank on a direct relationship with the brand behind the product.

Social commerce is helping consumers overcome the trust barrier

Lack of trust in social networks and vendors is one of the main barriers facing social commerce. The authenticity of vendors and products on social media is constantly questioned. More so, most people are hesitant to share their financial information with social networks. Consumers want to hear more about the products they are interested in from third-party creators, as well as get assurances that their purchases will be protected and refunded. Influencer-based marketing is helping overcome this key challenge by clarifying the purchase journey via live interactions.

More platforms are investing in live shopping

Amazon is by far the largest e-Commerce player in the US with a 38% market share. The company’s Amazon Live is perhaps the most popular livestream shopping platform in the US. But Amazon is not the only company that’s working to take social commerce to the next level in 2023. Many other social networks and ecommerce platforms (Pinterest, TikTok, YouTube, Shopify, etc.) have recently introducing in-app shopping tools to enable seamless social commerce experiences. More players will continue to launch social commerce innovations geared towards making this sector grow at an even higher pace in 2023.

More brands are making the leap

Despite the slow start of live stream shopping in the US, more brands have come to appreciate its benefits. Marketing managers are keen to cultivate deeper relationships with customers via real-time conversations and personalized shopping experiences. All the same while improving their sales bottom-line. More and more brands will explore social commerce in 2023 as they seek to stand out of the competition in an already crowded digital landscape.

More demographics are taking a liking to social commerce

In the US, social commerce has been more popular with Generation Z and millennials. This has seen brands with a predominantly younger target audience (18 – 34 years) rush to reach out via interactive livestreams. But this trend is shifting as baby boomers and even smaller demographics account for a significant percentage of users. It’s clear that the vast majority of shoppers are hungry for a frictionless, personalized experience.

Niche micro influencers are replacing super-expensive celebrity influencer endorsements

Marketers know that influencer-generated content performs better than regular branded content. But celebrity endorsements are super expensive and often out of the reach of smaller brands. Live stream shopping is making it possible for smaller players to gain similar benefits within budget. Companies are taking advantage of niche micro-influencers who (in addition to being affordable) offer higher audience engagement rates, access to niche communities, willingness to work with smaller brands, accessibility, and openness to continuing relationships.

AI is enabling better social commerce personalization

US-based brands spent around $3.7 billion on influencer marketing in 2021. This was a 33% increase from the previous year. Demand for personalized shopping experiences is on an all-time high even as data regulations become more stringent. Shoppers expect online shopping experiences to be at least similar to or better than what they get at brick-and-mortar stores. Using artificial intelligence, platforms such as Logie are enabling ever-improving personalized experiences that better suit the needs of brands, creators, and shoppers.


Social commerce has become an increasingly important part of the future of digital marketing. With increased interest and investment in the sector, this industry has the potential to reach and engage more customers than ever before this year.

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