Social commerce growth slows, but long-term outlook remains promising - Business Insider

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Social commerce sales should continue to grow as networks introduce new features and social buying reaches critical mass

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Despite increased use of social networks during the pandemic, US social commerce sales growth will slow this year because of reduced spending on nonessential items, according to our latest estimates: Sales from products sold via social networks will reach $23.3 billion in 2020, up about 20% from 2019, but roughly $2 billion less than our pre-pandemic estimate.

Consumers spent less on nonessential items during the pandemic, which are commonly discovered and purchased on social networks. As a result, most of the drop in sales from social commerce occurred in Q2 2020, the height of the pandemic.

 

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