Social Media Platforms Fueling Commerce Growth

Commerce evolution is well underway, and a critical theme we continue to focus on. Within this widespread category is the intersection of social media and commerce – or social commerce.

In a recent survey by Statista this past summer, approximately 37% of respondents noted that social media was a way they usually found out about new interesting products.

For comparison, only 24% of respondents said they found out about new interesting products in a store.

Investment Implications

As more business shifts online, companies are continuing to innovate at a fast pace, finding new ways to service this massive market. With only a fraction of total retail sales flowing over the internet here in the U.S., the opportunity remains attractive.

Today, most social media companies have begun focusing on an e-commerce strategy. Most notably is Facebook (FB), which has prioritized commerce through Instagram Shops and Facebook. They have enabled consumers to discover new brands, but also seamlessly check out. Pinterest and Snapchat have also made strides in this space.

As the social media networks themselves gain more scale, partnerships with back-end platforms (i.e. Shopify) are also important parts to the story. With improving factors like lower shipping times on the back-end, it will be interesting to see how all this drives consumer adoption and ultimately benefits the companies at the core of it all.

Twitter:  @_SeanDavid

The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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