7 Disadvantages of Social Commerce | Platform Dependence, High Investment, & Declining Reach

The disadvantages of social commerce are:

1. Dependent on a social platform to operate
2. High time and resource investment
3. Declining organic reach
4. Public exposure to negative feedback
5. Audience reach is restricted to social platforms
6. Limited seller support features
7. Reputation for poor quality products

Social commerce is one of the hottest online business models right now. Although TikTok Shop just barely launched a few years ago in September 2023, AMZ Scout reports it already has over 15 million sellers. Yet, while people like Robert Oliver have proven social commerce as a viable online business opportunity, there are some major drawbacks to the business model. Many TikTok Shop sellers report getting their accounts banned without much explanation.

TikTok has a strict drop shipping policy and they use AI to automatically ban sellers suspected of breaking their rules. As such, many sellers get their accounts suspended, even if they aren’t dropshipping. That’s why relying on one social platform for your business can be dangerous.

I’ve been in Ecommerce for over a decade. In the following article, I highlight the main disadvantages of social commerce, covering bans, high time, resources, organic reach decline, and more. I help you decide whether a social commerce business is right for you.

1. Social Commerce Sellers Get Banned From Platforms

Social commerce requires setting up online stores on social platforms like TikTok Shop and Instagram Shop. Online stores that operate through social platforms must adhere to the strict policies these platforms set. Social commerce sellers that miss or outright ignore these policies are likely to lose their selling privileges.

Many social commerce sellers appear to have issues relying on social commerce platforms. A Reddit user details a recent experience with TikTok Shop, looking for guidance because their shop has been suspended after 3 months of selling on the social media platform. They were suspended for “Non-compliant store behavior” but received no clear instructions from TikTok on how to fix this issue. They express their TikTok Shop experience as a “frustrating journey”.

Another seller on the thread mentions that they shut down all of their businesses on TikTok Shop because their customer support is poor.

2. Social Commerce Often Requires a High Time and Resource Investment

Managing a successful social commerce store requires 20-40 hours per week and $500 - $5,000 to start. Tasks involve coordinating with suppliers, creating high-quality content, and socializing with your community. Many social commerce stores need to run ads to target and convert customers. Social commerce stores generally spend between $100 and $5,000 per month on social media marketing, according to WebFX.

One social commerce store owner on Reddit mentions having spent over $1,500 on TikTok Ads but having generated zero sales.

3. Social Commerce Suffers From Declining Organic Reach

Factors like rising competition and slower user growth have led to a decline in organic reach for social commerce. Although many people are tempted to start social commerce for the prospect of attracting users to their social shop with viral content pushed by an algorithm, many social commerce store owners are forced to pay for advertising to get sufficient visibility.

An 800K TikTok post study by Fanpage Karma Insights found that TikTok organic reach fell over 58% between 2022 and 2023. It states that average impressions per video per follower dropped from 24% at the beginning of 2022 to just 10% by the end of 2023. Engagement on Instagram has dropped by 28% year-over-year in 2025, according to Facebook. Meanwhile, Instagram Ad reach has increased by 12.2%, data from Only Social shows.

One Reddit user mentions that although users who see their content love it, their TikTok Shop needs to pay for ads to generate sales.

Esteemed digital marketing Neil Patel stressed the importance of an omnichannel approach in a recent Instagram Reel because social organic reach has fallen to the low single digits in 2025. He recommends combining organic social with channels like paid social, podcasting, and blogging. Neil and his team found that leveraging multiple channels increases engagement by around 10% on all channels.

4. Social Commerce Can’t Hide Public Exposure to Negative Feedback

Complaints, negative reviews, and controversies are highly visible to the public when selling products through social commerce. That’s because customers often interact with social commerce brands in the comments of posts and live streams. Social commerce brands have little control over negative responses to posts from trolls and dissatisfied customers seeking to slander the brand’s reputation.

A TikTok shop owner details their experience of receiving negative reviews. They talk about receiving negative reviews because of unrealistic expectations from their customers. One of their customers gave them a 3 star review because they didn’t include any freebies with the order despite the seller never mentioning any freebies in the product description.

5. Social Commerce Audience Reach Is Restricted to Social Platforms

Online stores that rely solely on social media platforms limit traffic potential. Although Ecommerce stores can attract customers through Google SEO, paid advertising, and social media, businesses that operate only through social commerce are restricted to attracting customers through a single platform. This can be especially negative for brands that sell products whose target audience does not primarily spend time online with social media.

For example, a seller of assistive devices like walkers, canes, and wheelchairs probably wouldn’t want to sell on TikTok Shop. That’s because only 14% of TikTok users are aged 55 or older, according to Exploding Topics.

6. Social Commerce Offers Limited Seller Support Features

Social commerce platforms generally lack robust seller service features that Ecommerce platforms like Shopify and Amazon offer. Neither TikTok Shop nor Instagram Shop offer direct contact channels for live seller support. Instagram Shop is limited to basic FAQs and troubleshooting tips. TikTok Shop sellers can reach live agents after navigating TikTok Shop’s ticket resolution system.

Many TikTok Shop sellers report getting their account suspended and struggling to reinstate their account because the system is operated by AI.

7. Social Commerce Has a Reputation for Poor Quality Products

Many online shoppers avoid buying directly through social commerce platforms because they fear scams and low product quality. In a social commerce customer survey by Hubspot, 54% of respondents reported that they worry social sellers aren’t selling legitimate products. 44% reported that they are concerned about social commerce product quality.

In response to someone asking about buying a bag on TikTok Shop, a Reddit user notes that many sellers are scammers and the legit sellers don’t sell top tier products.

It’s not just about poor quality products now. One Redditor complained that they bought a retro video handheld console for $20.99. However, the item never arrived. The sellers even sent them a wrong tracking number. And that’s just one of hundreds of stories about TikTok Shop scams.

What Are the Advantages of Social Commerce?

• Access to mobile shoppers - Between 59-75% of online sales come from mobile devices.
• Massive reach - There are over 5.24 billion social media users.
• Direct communication with customers - Social commerce sellers can interact with customers through live chat, direct messages, and post comments to help generate sales.
• Potential to go viral with organic content - The TikTok and Instagram algorithms offer the potential to go viral with organic content marketing because they can push short form videos to a large audience.
• Less sales friction - Social commerce offers customers a more seamless experience from product discovery to purchase because it all takes place through one platform.

Social Commerce vs Ecommerce, Which Should You Choose?

When considering social commerce vs Ecommerce , you should choose social commerce for a Gen Z audience and you should choose Ecommerce for more control.

You should choose social commerce if you sell products whose primary target audience is younger people. That’s because the majority 70% of social media users are under age 34. Good product categories for social commerce include trending fashion items, gaming accessories, and beauty products.

You should choose Ecommerce if you want more control over the branding of your online store and want to leverage omnichannel digital marketing tactics. Ecommerce platforms like Shopify and WooCommerce allow completely custom online store branding ability. Ecommerce sellers can attract online shoppers from any digital channel to visit their store, including social media pages, blog posts, Facebook Ads, and Google Ads.

TikTok Shop vs Instagram Shop, Which Performs Best?

When considering TikTok Shop vs Instagram Shop , TikTok shop performs better for impulse buys of trending items while Instagram Shop performs better for luxury and lifestyle products.

TikTok Shop sellers leverage trending content like #TikTokmademebuyit to drive quick purchases of trending products.

Instagram Shop sellers use shoppable Reels, influencer collabs, and AR try-ons to help customers make more intentional purchases. For example, L’Oréal increased conversions of its Instagram Shop by adding a virtual try on feature for its lipstick colors. Users can test how different options look and make an informed purchase decision.

Conclusion: Is Starting a Social Commerce Business Worth It?

Starting a social commerce business can be worth it because social commerce is growing rapidly. Many social commerce sellers report incredible results. One Reddit user sold over $230K of products in just one month. They sold car play units and created content for the TikTok algorithm to promote their TikTok Shop organically.

However, social commerce is highly competitive because you compete on a global scale. Your competitors are major brands, Chinese suppliers, and millions of creators vying for attention. Many prefer a lower competition online business model like local lead generation.

Local lead generation entails setting up websites that attract customers for local service businesses. You compete for traffic against a handful of small local business owners in one specific geographic location. As such, it’s much easier to generate online visibility for your offer and generate income online. Each of these local lead gen websites can generate between $500 - $2,500+ per month.