As social commerce rises in North America and Europe, brands are racing to create a seamless, engaging experience that meets the demands of an evolving digital landscape. At the New Media Summit at the WebSummit, a panel of experts—Noor Agha, CEO & Founder of Flip; Jen Jones, CMO of commercetools; and Cate Lawrence, Senior Writer at Tech.eu—discussed the core challenges and opportunities in social commerce and how brands can build a successful engine in this space. Their insights shed light on the consumer-driven trends that are reshaping the future of e-commerce.
Social Commerce vs. Traditional E-commerce
Noor Agha believes that for social commerce to thrive, it must offer more than traditional e-commerce. “Social e-commerce can only be successful if it is better than e-commerce,” he states, underscoring that merely adapting social media for shopping won’t be enough. According to Agha, the challenge is not just to replicate what works in traditional e-commerce but to reimagine it to leverage the unique power of social interaction.
Jen Jones from commercetools points out that social commerce faces generational challenges, especially with Gen Z, who are digital natives. “Gen Z sees social platforms as TV,” she explains, indicating a shift in how younger consumers view media. For this generation, communication is peer-to-peer rather than brand-to-consumer, creating a new paradigm where recommendations and reviews from other users carry more weight than brand messaging.
The Omnichannel Consumer Journey
According to Jones, social media platforms now compete with other e-commerce channels, but for consumers, the shopping experience should be seamless regardless of where they choose to buy. “For the consumer, brands should be the same wherever they purchase the product,” she says, emphasizing that social commerce is part of a larger omnichannel relationship with consumers. Brands must understand this convergence and offer a unified experience, making shopping intuitive across all channels.
Agha also notes that video is now essential in social commerce. “If something doesn’t exist in video, it doesn’t exist,” he says, highlighting the rising value of video content over written word for today’s consumers. Even LinkedIn, traditionally a text-focused platform, has embraced video, surprising Cate Lawrence, who sees this as an indication of video’s dominance in the digital landscape. Startups and smaller brands must recognize this trend and meet consumers where they are, adapting to the new norms of digital communication.
Building Trust and Authenticity in Social Commerce
Flip, Agha’s platform, is designed with a unique twist: brands cannot sponsor content. “Only people who purchase the product can talk about it,” he explains, describing Flip’s commitment to authenticity. This ecosystem allows any user to make money through relevant product reviews, whether positive or negative. Flip aims to build genuine consumer trust by removing incentives for purely positive content. According to Agha, this approach benefits users and enables brands to receive honest feedback, which is crucial for long-term success.
Jones adds that this emphasis on community and authenticity is not just limited to B2C brands but is also relevant to B2B companies. “Everywhere there is a community, there is space for social shopping,” she says, indicating that social commerce can extend beyond consumer goods. By understanding what customers want and preparing for future integrations, platforms can stay ready to meet the evolving demands of digital shoppers.
Future Technologies: Web3, Augmented Reality, and Social Commerce’s Evolution
Looking ahead, both Web3 and augmented reality (AR) are set to impact social commerce, but Jones believes that the hardware still needs to be ready to make these technologies mainstream. “When the hardware is good, and at the right price point, then e-commerce on these platforms will be successful,” she predicts, though she acknowledges that widespread adoption is still a few years away. Agha, however, is more cautious, estimating that these advancements are at least a decade from becoming viable for social commerce.
Agha also offers insight into why social commerce took off faster in China. “China skipped the laptop,” he explains, noting that by moving directly from desktop to mobile, Chinese consumers embraced social shopping platforms without a legacy of Amazon-style e-commerce. This shift means that social commerce in China is not synonymous with live streaming, as often assumed. Instead, it’s a model where a persona explains what to buy, catering to a consumer base unfamiliar with traditional desktop shopping experiences. Agha emphasizes that while live streaming is effective for specific categories like used goods, it constitutes less than half a percent of total e-commerce sales.
The Next Big Challenge: Seamless, Frictionless Shopping
According to Jones, brands’ next priority should be creating a unified, frictionless experience, especially for Gen Z consumers who demand seamless interactions. “They will not tolerate friction at checkout,” she says, highlighting that the ability to offer a smooth experience from discovery to purchase will be essential for brands hoping to succeed in social commerce. As brands strive to unify their channels, understanding their audience and tailoring the journey to their expectations will be key.
The future of social commerce is an intricate blend of technology, authenticity, and consumer-centric design. As Agha, Jones, and Lawrence discussed, the industry must evolve beyond traditional e-commerce, adapting to the expectations of a generation that values peer-driven content and seamless experiences. By focusing on video, authenticity, and omnichannel strategies, brands can create social commerce engines that resonate with today’s consumers and set the stage for tomorrow’s innovations.
