Commerce that inspires and connects: how a social revolution is changing online shopping

How much of your online shopping is done through social platforms?

For me, that’s increasingly how I discover new brands that speak to my values.?

For example, environmental consciousness is important to me, which is why I follow brands like Natura . Because of my interest, I see similar content online, from research and news to ads by companies that have social and environmental goals as their guiding principles.??

That’s how I discovered Sea Blue Collective on Instagram, an online marketplace that curates ocean-friendly products. After following Drops of Amazon , a retailer that helps finance access to drinking water in the region, I bought their necklaces for my kids’ teachers via Instagram Direct messaging.? I wouldn’t have known about these small social businesses - or their products - if it hadn’t been for targeted ads on Instagram.?

I’m not alone. I’m part of a trend that researchers are calling a social revolution in online shopping: a shift from traditional e-commerce, where shopping decisions are based on need, to a discovery mindset, with consumers buying products and services based on their personal interests and inspiration from people they trust. This is a key behavior that’s underpinning social commerce: more than 70% of consumers in Argentina, Brazil, Colombia and Mexico said they use Meta apps to discover new products and brands, according to a recent Facebook IQ survey.?

A recent study by Accenture estimates that social commerce will more than triple by 2025, reaching $1.2 trillion globally, compared with expected sales of $492 billion in 2021. That segment is still less than 10% of online shopping as a whole but is growing much faster than the wider sector average.

This shift in power from large retailers and brands to people and the sense of connection they create is undoubtedly linked to the rise of social platforms. Family, friends and communities, as well as creators that we follow, inspire us and inform our views of the world. It’s through that connection with our values that new brands are creating this growing wave of social commerce.

?All that is playing out on digital platforms like Facebook and Instagram, which helps match companies with potential new customers, inspiring shoppers and generating new demand. Artificial intelligence and collaborative curation are driving the creation of content and commerce, linking the two in a way that’s building trust – a key element when shoppers decide to spend on new brands and small businesses.??

?In Accenture’s “Why the future of shopping is set for a social revolution” study, 44% of respondents said they were more likely to buy from a brand they had never heard before when shopping through social commerce versus traditional ecommerce, while 59% said they were more likely to buy from a small business. Fundamentally, social commerce is a democratizing force in the economy.?

Creators and content: community is key

The engine propelling this social commerce revolution is the growing creator ecosystem. More than 50 million creators around the world produce and monetize their content by directly engaging with their audience on social platforms. The booming creator economy is estimated to be worth over U$100 billion , according to research company Influencer Marketing Hub.

?Creators inspire people with their content, in their native language, building an emotional connection. They understand the platforms, know how to deliver content that resonates with their target users and excel at building community around their values. That’s why in 2022 we are investing $1 billion in creators , many of whom support small businesses in finding new customers.?

?These influencers are artists, entertainers and experts in everything from yoga for the 50+ crowd to poker enthusiasts and pet lovers. Take Adriana Meaury , for instance. Her entrepreneurial story began four years ago when she arrived in Colombia from Venezuela. She worked selling sweets and umbrellas on the streets, but her dream was to create her own fitness brand and launch a sportswear business.?

?She launched a sportswear collection with her husband in February 2020, but just a month later the COVID-19 pandemic brought the world to a halt. So Adriana started doing live videos with exercise routines. Two months after her first live on Facebook Watch, one of her classes reached 800,000 views. In October 2021, she reached 23,800 views in a single broadcast. Now, 3 million followers later, the trainer has a well-established personal fitness brand.?

For businesses, focusing on working with creators and embracing their creative potential is a key aspect of customer experience.

Metaverse: more opportunities for creators and brands

At Meta, we are working to make shopping not only more entertaining but also more experimental, offering immersive experiences through augmented reality so that people can connect with each other and the world around them in totally innovative ways. Our vision for the metaverse – the next chapter of the internet that will change the way we experience the online world – will provide even more opportunities for creators to design content. Though the metaverse is years away, some glimmers of it can already be experienced today.???

?AR filters created in our Spark AR studio are already a huge opportunity for content creators, with over 700 million users worldwide. Brazil and Mexico are among the top ten countries with the highest number of active creators. One example is Bianca Garutti , from Brazil. With a background from theater and performing arts, she has created more than 400 effects - and she has been selling some of those creations to customers around the world.?

?We believe the metaverse will be the greatest opportunity for businesses since the creation of the mobile internet, and it will really turbocharge social commerce. Imagine feeling present in the Amazon with the social entrepreneurs of Drops of Amazon, checking out the progress of their latest drinking water project.? Now that sparks my interest.? What sparks yours?