Social commerce: from retail experiment to fully fledged sales channel

The Retail Monitor explores how platforms such as TikTok, Instagram, and Facebook are changing purchasing behaviour and the impact this is having on retail organisations. Social commerce now affects almost every link in the retail chain: from customer journey and fulfilment to data, technology, and compliance. 

In 2025, the European social commerce market was worth 135 billion euros—and it is expected to continue growing by more than 15% annually to 2033. Younger generations in particular are leading this development. They increasingly combine discovery, comparison, and purchase into a single experience on social media. More than half of Gen Z have already made a purchase via social media, and millennials are following close behind. 

Social commerce is growing especially rapidly in fashion and beauty, with consumers discovering products through livestreams, tutorials, and creators who demonstrate products. Attention is also shifting from major influencers to smaller creators with loyal communities. Smart collaborations involving limited editions and live shopping events further demonstrate how social commerce directly influences sales. 

The rise of social commerce is affecting the entire retail ecosystem. Consumers expect product information, availability, payment, and delivery to be seamlessly integrated. In practice, many bottlenecks still arise in these areas. For example, 35% of consumers report negative social commerce experiences due to long delivery times, and 25% do not receive the product they expected. This makes trust a crucial success factor. 

The impact of social commerce is not limited to online sales. It also influences the role of physical stores, for example through click-and-collect services, live events, and content-driven shopping experiences. 

Data collection is also becoming a critical strategic issue. Although in-app checkout lowers the barrier to purchase, it also reduces retailers’ insight into customer data. The more processes take place within the platform, the less first-party data retailers can collect themselves. Yet it is precisely this data that is important for personalisation, building sustainable customer relationships, and upselling. 

In addition, stricter European regulations, such as the Digital Services Act and GDPR, increase requirements for transparency, privacy, and data usage. 

Some retailers choose to conduct sales entirely within platform ecosystems such as TikTok Shop and Instagram Shopping. Others use social commerce primarily as a marketing and inspiration channel and route transactions through their own webshop. 

To help retailers decide on the right path, the Retail Monitor outlines five models for social commerce, ranging from platform-native retail and creator commerce to fully owned live shopping environments. 

Success depends not only on the platform, but also on how social commerce fits within the organisation, value chain, and customer strategy. Retailers who are leading the way therefore no longer treat social commerce as an experiment, but as a fully fledged sales channel. 

Social commerce continues to evolve. New technologies such as conversational commerce and AI agents are further changing the way consumers discover and purchase products. Gartner, for example, expects that 20% of purchases will take place via AI agents by 2028. 

For retailers, it is therefore becoming increasingly important to align speed, reliable data, and flexible fulfilment processes. By structuring social commerce strategically now, organisations are building stronger customer relationships and a future-proof position in retail.