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Picture this: You’re scrolling through your favourite social media app, watching a video of your go-to creator showcasing a product. With a simple tap, you’ve purchased that item without ever leaving the app. This seamless integration of entertainment, social interaction, and shopping is the essence of social commerce, and it’s rapidly becoming more widespread for consumers worldwide.
A new paradigm is emerging that promises to generate $3 trillion in global sales by 2026. To decode this I spoke with Max Benator, CEO of Orca, a leading live and social commerce provider, and the visionary behind SoCom, the first dedicated social commerce conference in the US.
The Social Commerce Boom
While social commerce might seem like a new concept to some, Benator is quick to point out that it’s already a substantial market. “This year, social commerce will drive $90.5 billion in transactions just in the US,” he reveals. This figure underscores the immense potential for brands willing to embrace this new channel.
But what exactly is social commerce? Benator explains, “Today, in the US, it means driving sales through content interaction or social media for a consumer product. TikTok Shop is a prime example. You have a video or a live stream, and you can purchase directly from the content inside of an enclosed environment.”
The Evolution of Shopping Experiences
The traditional e-commerce model, characterized by static product pages with “a photo and a paragraph,” is becoming obsolete. “It’s wild when I say this, but a traditional product page is almost 30-year-old technology,” Benator notes. “We don’t need to interact with our digital devices with a photo and a paragraph and five or four yellow stars. That’s some really web 1.0 stuff.”
Instead, platforms are investing heavily in more dynamic, interactive shopping experiences. TikTok Shop is leading the charge in the US, but other major platforms are quickly following suit. “We’re moving there, whether one major technology company wants to move there or not,” Benator asserts. “They have no choice but to make those investments and catch up to interactive media with the shopping experience.”
While fashion and beauty currently dominate the social commerce landscape, accounting for approximately 70% of live shopping sales, Benator emphasizes that the opportunity extends to all categories. “Every category [can benefit] because it’s shopping,” he states. From home improvement to electronics, brands across the spectrum can find success in social commerce.
Advice for Brands
For brands just beginning to explore social commerce, Benator offers crucial advice: “Brands should recognize that social commerce is a sales channel, just like their D2C sales channel, their retail sales channel. It fits inside of their omnichannel strategy. It’s not a marketing activation.”
This perspective shift is vital. Benator warns against treating social commerce as a short-term experiment: “We’re starting to see brands understand that they’re making a minimum 12-month startup commitment to build that sales channel. They have to, actually, because if they don’t, they’re going to lose their share as a result.”
The Creator Economy and Social Commerce
Content creators play a pivotal role in the social commerce ecosystem. Benator, drawing from his background in talent management, emphasizes the importance of product selection for creators looking to monetize through social commerce. “The secret sauce is, I kid you not, the product selection,” he reveals. “There are products that go viral, and as a result, they get more search activity, they get more engagement, they get more watch time, and then they get more sales.”
He cites examples of brands successfully leveraging creator partnerships, such as O Positiv, a women’s health supplement brand, and Sacheu Beauty, co-founded by creator Sarah Chung. These brands have seen significant success through affiliate partnerships with thousands of creators.
The Role of AI in Social Commerce
As with many industries, artificial intelligence is set to play a transformative role in social commerce. While virtual hosts and avatars grab headlines, Benator sees more immediate potential in behind-the-scenes applications. “There are two sides to AI,” he explains. “One is, I think, the shinier object, which is virtual hosts and avatars… the other side, where progress is already getting made much more quickly… is how AI is used for optimizing your product pages, building product pages, on your paid media, so editing and re-editing and A/B testing short videos using an AI tool with your paid media strategy.”
SoCom: The Future of Social Commerce
Recognizing the need for a dedicated forum to discuss these rapidly evolving trends, Benator and his team are organizing SoCom, the first dedicated social commerce conference in the US. Set to take place on February 6, 2025, at the Audrey Irmas Pavilion in Los Angeles, SoCom aims to bring together all facets of the social commerce ecosystem.
“We have brands, platforms… We’re very fortunate to have Malik Ducard, who’s the Chief Content Officer of Pinterest, giving the keynote presentation,” Benator shares. The event will feature industry-focused main stage presentations, deep-dive workshops, and a unique live stream gifting suite where 300 top creators will interact with products in real-time, allowing attendees to purchase items as they’re being showcased.
The Time to Act is Now
With social commerce poised for explosive growth, the message for brands is clear: the time to act is now. As Benator puts it, “If you don’t move early, you miss early opportunities, and you miss that early growth cycle. And we’re not so early today that it’s experimental. The sales volume is significant enough now that we’re really in the, I would say, the regular growth phase at this point.”
For brands ready to embrace the social commerce revolution, the rewards could be substantial. Those who hesitate may find themselves playing a costly game of catch-up in a market that waits for no one.
As the retail landscape continues its digital transformation, social commerce stands as the next frontier. With platforms, brands, and creators all converging on this new paradigm, the stage is set for a shopping revolution that promises to be more interactive, engaging, and lucrative than ever before.
Check the full interview with Max on the Business of Creators podcast.
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Ian Shepherd is a creator economy entrepreneur and investor. He is Co-founder and Co-CEO of Electrify Video Partners, a company that invests tens of millions of dollars into some of the world’s biggest content creators. He’s also the host of the Business of Creators, a leading podcast and creator economy network featuring creators, managers, investors and entrepreneurs. He has 25 years commercial experience having previously built and sold a creator economy business and held executive positions at Disney, Universal Music and WarnerMedia.
