Social Commerce
Social MediaAlso: Social Shopping · In-App Shopping
Quick definition
Social commerce is the integration of shopping functionality directly into social media platforms, allowing users to discover and purchase products without leaving the app. Instagram Shopping, TikTok Shop and Pinterest Shopping are the primary examples. It collapses the traditional path from product discovery to purchase by removing the step of navigating to a separate website.
How it varies across Australia
Social commerce conversion rates are typically lower than direct website conversion rates because users are in a browsing mindset rather than a buying one. However, the volume of discovery events can be substantially higher, making the absolute number of conversions significant at scale.
Explore benchmarks →Linking your product catalogue to a social platform's commerce tools. Once linked, individual products can be tagged in posts, stories and ads, allowing users to tap through to a product detail page and purchase.
Meta's feature set allowing businesses to create a Shop tab on their Instagram profile, tag products in feed posts and stories and enable in-app checkout (available in some markets). Requires a Business or Creator account with a connected product catalogue.
TikTok's integrated commerce platform allowing merchants to list products that creators can tag in videos and lives. Purchases happen within TikTok. Highly influential for impulse purchases in categories like beauty, fashion and home goods.
Livestreamed video where hosts demonstrate products in real time and viewers can purchase directly during the stream. Dominant in Asian markets and growing in Australia, particularly on TikTok.
What it actually means
Social commerce describes the evolution of social media from a channel that sends traffic to a website into a channel that completes transactions directly. Platforms like Instagram, TikTok and Pinterest have built shopping infrastructure into their core experience so that a user who sees a product in a post can tap on it, view product details and complete a purchase without ever opening a browser. For brands, this means the social feed is not just a top-of-funnel awareness tool. It is a full-funnel channel capable of completing transactions. The experience works best for visually compelling consumer products where the desire can be captured in an image or short video.
Social commerce works because discovery and desire happen in the same place. When you can buy the thing you just fell in love with without leaving the app, the moment of impulse becomes a purchase.
The Australian context
In-app checkout for Instagram Shopping is currently limited in its Australian availability, meaning many Australian social commerce transactions involve a handoff to the brand's website for the final purchase step. TikTok Shop launched in Australia in 2023 and has grown rapidly in beauty, fashion and home categories. Australian Consumer Law and ACCC disclosure requirements apply to social commerce transactions equally to other forms of e-commerce. Product descriptions, return policies and pricing displayed via social shopping tools must comply with the same standards as your website.
Where people get this wrong
The most common mistake is treating social commerce as a passive product catalogue rather than an active content channel. Simply listing products on Instagram Shopping without producing content that features those products in use rarely drives meaningful transactions. Social commerce requires ongoing creative output, whether by the brand itself, through creator partnerships or through user-generated content. The second mistake is not keeping the product catalogue synchronised with actual stock levels, leading to customer frustration when they discover an item is unavailable after engaging with it.
Related terms
Common questions
Do I need a website to sell via social commerce?
For most Australian social commerce setups, yes. Instagram Shopping and Pinterest Shopping link through to your website for checkout unless you have access to in-app checkout features, which are not universally available in Australia. TikTok Shop has more complete in-app checkout functionality. A Shopify or WooCommerce store typically integrates most readily with social commerce platforms.
What products work best for social commerce?
Visually compelling products with clear lifestyle appeal and accessible price points for impulse purchase (typically under $150) perform best. Beauty, fashion, homewares, food and fitness products have the strongest social commerce track records. High-consideration purchases like furniture, electronics and professional services convert less well because social commerce does not support the research process these categories require.
How do I set up Instagram Shopping?
You need a Business or Creator Instagram account, a Facebook Business Manager account and a product catalogue linked via Commerce Manager. Once your account is approved for shopping, you can tag products in posts, stories and reels. Approval is subject to Meta's Commerce Eligibility Requirements and typically takes a few days.
How does social commerce affect my attribution data?
Transactions that originate and complete within a social platform may not appear in your website analytics at all. If the checkout occurs on Instagram or TikTok, no session is recorded in GA4. This means your website analytics undercount the true contribution of social commerce. Tracking social platform-native sales separately from website analytics is necessary for accurate channel attribution.
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About New Rebellion
New Rebellion is a marketing intelligence consultancy. We build tools, score Australian businesses on how their marketing actually performs, and publish Debrief every day. This dictionary is part of how we work in the open.
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