Social Commerce vs Ecommerce: Platforms, Product Discovery, & More

Social commerce is buying and selling products directly on social media. It works by promoting products through social media channels like TikTok and enabling customers to complete the purchase without leaving the platform. Ecommerce is a broad term that encompasses selling goods through any channel on the internet. The difference between Ecommerce and social commerce is that social commerce is restricted to social platforms while Ecommerce spreads across all digital channels.

I’ve been making money online for over a decade now, experimenting with different strategies like running Facebook Ads for dropshipping traffic. In this article, I discuss the main differences between social commerce and Ecommerce, including which has more potential for the future.

1. Social Commerce Happens on Social Media

Social commerce allows users to shop directly through social media apps, while ecommerce requires users to navigate to a website to purchase. The most popular social commerce platforms include:

• Instagram Shop
• TikTok Shop
• Facebook Marketplace
• Pinterest
• WeChat Store

The most popular Ecommerce platforms include:

• Amazon
• Shopify
• eBay
• WooCommerce
• Etsy

2. Ecommerce Mostly Leverages Organic and Paid Search

Customers discover social commerce products through organic discovery feeds, shares, and influencers. Customers discover Ecommerce products through organic SEO, Google Ads, social media ads like Facebook Ads, and email marketing.

Consider the “Explore” tab on TikTok. Here you can find the top trending content from brands promoting their own products and services, as well as social media influencers promoting the products of other brands. In the image below, the TikTok account driving_lessons sells its own cars and driving courses. The account jocy.cs is an influencer with over 340K subscribers that reviews skincare and beauty products.

Ecommerce customers who find Ecommerce products through organic SEO typically go through Google search. A good example of using SEO to get customers is a post by Forbes ranking for the search query “best protein powder”. The Forbes article reviews a handful of protein powders, with links to Amazon for readers to purchase. These supplement brands improve their search engine visibility by paying Forbes to promote them in the post.

Ecommerce sellers use social media marketing to showcase their products and reach new audiences. Ecommerce sellers often use paid social media channels to attract new customers. Here is the food brand Little Debbie using Facebook Ads to promote their powdered donuts.

3. Social Commerce Has Less Friction During the Sales Process

Social commerce offers customers a more seamless checkout experience inside the application they find the product, while Ecommerce requires that the customer move between multiple websites or applications to make a purchase.

Consider the TikTok Shop checkout flow for a customer who wants to buy a product they just discovered from a TikTok creator. To buy the product, the customer would:

1. Tap the shop link above the creator’s name on the post
2. Tap “Buy now”
3. Enter shipping and payment details to make the purchase

Shopify is one of the most popular Ecommerce platforms. It powers 10.32% of global Ecommerce, used by 2.49 million merchants across 175 countries, according to Pagefly. The Shopify sales process and check out flow typically goes like:

1. Customer discovers a product through Facebook Ads, Google Ads or affiliate marketing
2. Customer clicks on link and is taken to Shopify store
3. Customer adds the products they want to their cart
4. Customer inputs address and payment details to complete the purchase

4. Ecommerce Customers Rely on Product Descriptions and Reviews

Social commerce typically leverages more dynamic content while Ecommerce often relies on static content to engage potential customers.

Video content is at the center of social commerce. Social commerce platforms like YouTube and Instagram allow creators to promote products directly on shoppable videos and live shopping. User-generated content (UGC) is also popular for social commerce, where potential customers can see other customers of the product using and reviewing it.

Video is incredibly effective at generating engagement and online purchases. Social media posts with video generate 1,200% more shares than text and image posts combined, according to WebFX. Furthermore, businesses selling products that use video marketing experience conversion rates that are 34% higher than those that do not.

Product descriptions and professional photos are often the main source of information that Ecommerce customers have when deciding to buy a product. Although Ecommerce brands can include video alongside these other materials, customers are not primarily exposed to the product through video as with social commerce.

5. Social Commerce Allows Real Discussion During the Buying Process

Social commerce often enables instant and direct interaction with customers while Ecommerce interactions are more delayed.

Social commerce sellers interact with customers through direct messaging (DMs) and Q&A in comments or live streams. Live streams can be especially powerful for social selling because potential customers can get immediate, personalized responses from the favorite brands and creators promoting brands. 72% of customers expect a response within 30 minutes of reaching out and 80% are more likely to purchase when the experience is personalized, according to Desk 365.

Ecommerce stores typically engage with customers through email marketing, website form fills, and live chat on the website. These days, live website chat is often fulfilled through AI chatbots like Tidio, Gobot, or Zowie. Email responses are typically slower than many potential customers prefer.

Most businesses take between 12 to 36 hours to respond by email, according to Time To Reply. 44% of customers expect a reply within 4 hours. Although some Ecommerce stores leverage real human support during standard working hours, many are engaging the support of AI chatbots to save costs and satisfy customer inquiries after hours. A survey by Survey Monkey found that 90% of people prefer human support over AI chatbots. The majority 78% of people need to escalate to a human after starting an interaction with an AI chatbot, according to Forbes.

6. Ecommerce Builds Trust With Past Ratings and Reviews

Social commerce builds trust through dynamic, often real-time feedback, while Ecommerce relies on static, pre-existing trust signals.

Social commerce builds trust through comments, likes, shares, and influencer recommendations. Many social commerce customers buy products that they learned about from influencers. 69% of modern day customers’ trust influencer recommendations over information directly from brands, according to Shopify.

In response to one Reddit user asking how others justify buying products off TikTok Shop because it appears scammy, another Reddit user responds that they only buy from influencers that they trust.

Ecommerce stores typically rely on reviews and ratings to show social proof that helps convince potential customers to purchase. This is past customer data rather than real-time data, like social commerce allows. Even so, Ecommerce reviews are powerful for driving sales. 95% of customers read reviews before buying a product, according to Metrics Cart. 93% of customers report that online reviews strongly influence their purchase decision, per Fera.

7. Social Commerce Restricts Branding Ability

Social commerce branding is restricted by the specific social platforms policies, while Ecommerce stores generally have greater control over branding and user experience.

Social commerce sellers can’t customize their store design beyond showcasing their own logo and banner. There’s no ability to change layout, colors, or fonts. Furthermore, social commerce platforms typically have strict rules for sellers that limit their branding ability. For example, TikTok Shop requires that sellers show proof of ownership or reseller authorization to promote and sell branded products. If a seller does not have a registered trademark, they cannot list products under that brand name on TikTok Shop. This inhibits the ability of dropshippers and wholesalers to sell with social commerce.

Ecommerce sellers can use platforms like Shopify, WooCommerce, and Wix to build custom website stores to sell products online. These platforms allow Ecommerce brand owners to make their own decisions on how products are branded and promoted. The Ecommerce store owner can fully customize the website design and user experience to fit their brand theme.

Ecommerce sellers that sell through actual Ecommerce marketplaces like Amazon and eBay instead of their own website face branding limitations similar to social commerce.

Ecommerce and Social Commerce Have a Bright Future

Both social commerce and Ecommerce are expanding, but social commerce is growing much faster.

Social commerce is expected to grow at an average annual growth rate of 31.6% between 2023 and 2030, according to Grand View Research. Younger shoppers are relying more on social platforms for finding information and product discovery. Although Google is the primary search engine for Gen X and millennial consumers, a recent study by SOCI found that Gen Z consumers are using TikTok and Instagram more than Google. Data from Exploding Topics shows that 74% of Gen Z prefer shopping on mobile devices, which highlights why social apps are becoming a primary sales channel for the age group.

Ecommerce is expected to grow at an average annual growth rate of 18.9% between 2024 and 2030, according to Grand View Research. Ecommerce is integrating new technologies like augmented reality (AR) and voice search shopping to make shopping a better experience for consumers. 71% of consumers prefer AR powered shopping experiences, according to Paxcom. Data from The Future of Ecommerce shows that 45% of voice assistant device users are using these devices to make online purchases.

TikTok Shop vs Instagram Shop: Which Is Better for Social Commerce?

TikTok is better for social commerce right now. The TikTok algorithm is superior for viral product discovery. This is especially suitable for trendy products to generate impulse buys. As such, it’s no surprise that TikTok Shop accounts for the majority 68.1% of total social shopping, according to Influencer Marketing Hub. Even so, you don’t need to choose between TikTok Shop vs Instagram Shop . You can experiment with selling on both to see which is most impactful for your online business.

What Are Some Profitable Ecommerce Business Ideas?

Some profitable Ecommerce business ideas include:

• Health supplements
• Gourmet food products
• Pet care products
• Beauty and personal care products
• Smart home gadgets
• Educational toys
• Sustainable fashion
• Organic skincare

Conclusion: Do You Need to Choose Between Social Commerce and Ecommerce?

You do not need to choose between social commerce and Ecommerce. You can integrate social commerce and Ecommerce together to maximize online sales potential. Sephora is an example of a company using both Ecommerce and social commerce. Sephora’s primary Ecommerce operation runs through its Shopify website, according to Influencer Marketing Hub. Sprout Social notes that Sephora customers can also purchase products directly through Instagram Shop.

Both social commerce and Ecommerce are highly competitive. You compete against major brands, suppliers, and other small business owners nationally. An alternative online business model that is much less competitive and capital intensive for those just entering the online space is local lead generation. Local lead generation substantially reduces the competition level by targeting local traffic instead of national traffic like Ecommerce does.

The business model entails setting up websites that attract customers for local business owners and selling the leads to real business owners for $500 - $2,500+ per month. Typically, you only compete against a handful of small business owners in one location rather than thousands of businesses selling online.

Local lead generation is highly scalable, with many local lead generation agency owners earning well over 6 figures per year from stacking multiple websites.