TikTok Shop & Beyond: How Social Commerce Is Redefining the Shopping Experience

The global ecommerce market has peaked, particularly in well-developed economies such as North America, Europe, and Australia. But that’s not to say it’s not still rapidly evolving. As the market matures, the next battleground between competing companies is convenience, and the key is social commerce. Platforms like TikTok and Instagram have pioneered social commerce by combining past-time scrolling with product browsing and sales.

Our survey shows that 74% of Gen Z, 64% of Millennials, and 43% of Gen X plan to shop more on social media in 2025, compared to individual ecommerce sites. In this blog post, we’ll highlight the newfound prominence of social media-based storefronts and their appeal with younger consumers.

The TikTok Gap: Online Retailers Are Overlooking Social Markets

While social media and influencer marketing are nothing new, only 46% of online retailers currently support social commerce shopping. This could be costing late-adopters a big chunk of their customer base, as consumers are leaning more toward the convenience of social commerce.

For example, TikTok Shop lets brands combine the discovery and engagement phases of the buyer journey with the actual sale. This creates a closed-loop environment where the consumer doesn’t have to navigate multiple apps and payment methods for products from different brands.

The Benefits of Social Commerce

Businesses that keep up and enthusiastically invest in the latest trends experience three times the growth of their more hesitant counterparts. In terms of social media commerce, businesses that embrace its potential are set to not only tap into a thriving market but also to gain the opportunity to foster lasting and meaningful connections with their customers.

Additionally, younger generations are prioritizing their shopping experience, whether it’s online or in person. Social commerce mimics some aspects of physical shopping, allowing users to browse multiple stores through live streams, user-generated reviews, and interactive product showcases.

Tap Into Emerging Ecommerce Markets

Regions, including the Middle East, Southeast Asia, and Latin America, are all still in the midst of their ecommerce boom. Your best option to cross virtual borders and grab international attention is through social media.

By operating directly on Instagram and TikTok, you eliminate the hurdle of needing to establish consumer trust with a foreign commerce website. The social media storefront is more familiar and user-friendly, allowing you to close first-time sales more seamlessly.

Expanding your geographic reach also reduces your reliance on single-market economics. Not to mention, you’ll have access to international “peak seasons” that might not even exist in most Western economies.

Convert Clicks and Views Into Sales

The credibility of social engagement from peers can help you establish brand recognition and credibility in new markets. When creating a TikTok or Instagram shop, the investment is minimal compared to independently launching operations in a new region. You’ll also have the opportunity to directly gauge market interest in your product, which is especially beneficial if no relevant data is available to you.

How To Nurture Post-Purchase Engagement

Landing a sale isn’t the end of your relationship with a customer; it’s the beginning of one.

Customer satisfaction and retention aren’t limited to parcel tracking and follow-ups. Social media can help you build a deeper relationship, making your audience more likely to become repeat buyers and brand loyalists.

Not to mention, having an online presence will give you access to unique data about your exact customer demographics. You’ll also be able to adjust future marketing decisions and product launches based on direct user feedback rather than generalized market research.

Take Your First Step in the New Ecommerce Landscape

The internet is forever, so you want to make a good first impression when opening your new TikTok or Instagram store. Download ShipStation’s 2025 Benchmark Report today to learn more about how to connect and engage with the next generation of shoppers.