The Influence of Social Media on E-commerce in the USA

The USA is the land of limitless opportunities, where commercial and economic developments along with technological breakthroughs in the e-commerce industry have been observed by many. The American mind recognizes how big of an impact social media has on consumer buying decisions.

According to Demandsage, around 90% of the US population actively uses social media. Social media undeniably exists in American people's lives, and digital shopping on these platforms has become a norm.

The Rise of Social Media and E-commerce

Social media descents back to 1997, when Six Degrees was introduced as the first social media site. But a significant rise could be observed when platforms like Friendster, Myspace, and then Facebook came into being.  Facebook is one of the most popular social media platforms in the USA. 

The idea of online shopping took off when Michael Aldrich created an online purchasing system in the 1970s. Since this invention, many small e-commerce discoveries emerged in the early 1980s, 90s, and 2000s. E-commerce drivers were the World Wide Web and the Internet. The awareness and benefit of buying things online among people fully developed when sites like Amazon, eBay, and Etsy slowly began to dominate the market. Today the largest and most popular e-commerce platform in America is Amazon.

Social Commerce

Online shopping on social media platforms has become a routine procedure, it has changed the way consumers analyze products. Social media is a flourishing space for SMEs and major brands to take advantage of. TikTok, Facebook, and Instagram actively generate revenue for e-commerce retailers. According to Statista social media penetration in the USA is 91.56%.

There will be 110.4 million social media buyers in the US as estimated by EMARKETER. Product buying generation; the GEN Zs and millennials spend most of their time online, browsing products. Various components like influencer marketing, targeted ad options, and more are part of social commerce. The visual representation of various products, their reviews, and the discovery of new products online, allow users to surf the social media platforms for online shopping without going to the store.

Social Media & E-commerce Statistics in the USA

Social media prevails in America as Statistics 2024 show that 239 billion are social media users. According to the Pews Research Center, America's most used platforms are YouTube (83%), Facebook (68%), and Instagram (47%).

In America, according to Yaguara number of e-commerce buyers is 282.97 million in 2024. As per Statista 2023 report Amazon took the spot as the biggest retailer in the US, penetrating 37.6% of the market. 

Figure 1: Market share e-commerce companies in the United States in 2023, Source: Statista

Key Social Media Platforms In America

Here is a breakdown of the most popular social media platforms in the USA: 

YouTube

As per Statista YouTube in America has 239 million users. According to the social media statistical report provided by the Pews Research Center, YouTube is highly popular among Ages 19-29 (93%), and ages 30-49 (92%). The usage at ages 50-64% amounts to 83% while in the case of 65%, it stays leveled at 60%. YouTube usage is very similar between men and women. For both genders, YouTube usage is reported as 82% and 83% respectively.

YouTube offers a vast space of tutorial and product review videos, and that’s why many Americans watch YouTube before buying any product online or in-store. One major reason that urges people to consume is driven by influencer marketing. Viewers get influenced easily if any of their trusted individuals praise, recommends, suggests, or promotes a particular product on their channel.

Beauty hauls, daily V logs, unboxing, comparison videos, and many other influencer marketing videos become a point of the purchase decision for many Americans. YouTube advertising campaigns and tools help businesses target millions in seconds, while also allowing brands to build brand awareness through impactful video content creation that showcases brands' message, products, and services.

Facebook 

There are 190 million Facebook users in America as reported by Statista in 2024. Facebook usage in the US differs by age. According to the Pews Research Center social media fact sheet, the age group 18-29 has (67%) usage, the 30-49 age groups have (75%) usage, and the 50-64 age groups have usage of (69%). The usage declines to 58% when it comes to the 65+ population.

There is a prominent Facebook usage difference between men and women. Women make up a significant portion (76%) if compared to men (59%).
Meta advertising targeted ads based on different demographics. By analyzing internet behavior, Americans watch ads according to age, gender, location, and online activity (likes, shares, and comments). These personalized ads resonate with users and this compels them to buy the advertised product or service. Most American consumers see Facebook to check the news, but most of them get influenced by what their friends think.

On their social feeds, posts from groups, friends, and others come from their celebrity or influencer followings. In this way, consumers feel the urge to buy products and services. Through Facebook Live many influencers show product demonstrations. Many restaurants and businesses have pages on Facebook, which allow users to post reviews. Purchase decisions are made when a user reads another user's review or a recommendation on a page or in a group. Facebook marketplace integrates the shopping experience into the platform. Published ads allow American consumers to browse research and products without leaving the platform.

Instagram 

According to Statista's January 2024 report, Instagram has 169 million American users. In the United States, the Pews Research Centre social media fact sheet indicates that Instagram is dominated by mostly young adults with 78% usage, the usage then gets lower at the age 30-49 making up 59%, while age groups 50-64 and 65+ have a usage of 35% and 15% respectively. Women Instagram users (54%) outnumber male users (39%).
Many brands on Instagram upload organic content that includes posts, stories, reels, live streams, and videos to promote their products. Attractive and engaging content products motivate customers to buy brand products.

People follow their favorite celebrities, influencers, and other motivational people. Instagram influencers show relatable content that consumers can trust, and so convince them to buy that product. Moreover, Instagram shopping tools allow brands to create shopping ads. Consumers land on the brand's website as soon as they click the ad. Hashtags allow consumers to browse content and see what’s popular. In this way, they discover products continuously which creates an urge to buy certain products. The fear of missing out factor also plays a major role in changing buyer behavior. 

TikTok

TikTok is popular in America for its short video-sharing content. In America, there are almost 150 million TikTok users as per Statista's January 2024 TikTok report. According to Pews Research Centre People aged 18-29 have usage of 62%, people aged 30-49 have 39%, people aged 50-64 have 24% and people aged 65+ have 10% usage. The gender gap persists between men and women, with the female category having 40% usage and male about 25%. 

TikTok shows relatable content that grabs the attention of the user and compels them to find out more about the products shown in the video. TikTok ads and ad campaigns help spread awareness about a product or service. When users scroll on their “for you” pages they can across multiple ads in a significant amount of time. The for-you pages also have personalized content that the user can relate to and make use of and the TikTok algorithm makes users revisit the same content they have engaged in before.

TikTok influencer marketing involves the brand collaborating with well-known celebrities and influencers which attract their following towards the marketed product. The TikTok Made Me Buy It hashtag trend enables users to see various viral videos about different products and services that other people have purchased. The TikTok shop enables in-app purchases and caters to impulse buying, as brands can showcase their products directly in the app.

Marketing Strategies Employed by Ecommerce Brands

Amazon

Amazon Prime provides free shipping to customers, this makes the customers feel as if they have saved their money in the right way. This convenience of free shipping encourages the customer to repeat their prime purchases. The eMarketer reports that around 2024 67.4% of Americans are prime users. Moreover, prime offers multiple benefits, streaming, and special discounts. Amazon loyalty programs help in retaining old and attract new customers.

eBay

Through eBays email marketing campaigns buyers can remind sellers of their recent products and promotions, ultimately driving traffic back to their stores. As you sign up on eBay you can gain discounts and coupons on your next purchase, but as a seller, you can take advantage of coupons as they increase bidding and the number of buyers. Through the affiliate marketing program, affiliate partners redirect customers to the eBays marketplace through affiliate links.

This process helps attract new customers, increases familiarity, and can even motivate them to buy some things, this in turn also helps build brand loyalty. Moreover, eBay's authenticity guarantee gives buyers peace of mind when looking for authentic preloved high-end items, this increases customer satisfaction, and enhances trust in the brand. eBays industry experts check preloved items, this makes the customer confident enough to spend, while also spreading the word.

Walmart

Walmart has a membership program for those who frequently buy or consume products from Walmart. Walmart Rewards are points for Walmart Plus members whenever they purchase items. Moreover, Walmart Plus members get access to benefits like free delivery, and fuel discounts. With these value-added Walmart reels in new customers and encourages loyal membership customers by offering them benefits.

Walmart's Omni channel retail strategy allows customers to order online and pick up from their local Walmart store. In this way, they foster customer loyalty with this order and collect option, letting customers order online with peace of mind and collect at their convenience. People pay and skip the checkout plan with the Walmart Mobile Scan and Go option. The America at Work initiative prioritizes American-made products and jobs, making customers feel proud of shopping there.

Social Media's Impact on the US E-commerce Industry: Challenges & Opportunities

Challenges	Opportunities
Competition There is growing social media competition between big brands and small businesses. Both of these fight for customer attention.	Building Communities with Trust Responding to comments, hosting Q&A and live sessions, valuing customer feedback, posting engaging content, and utilizing hashtags can help make deeper customer connections.
Social Media Frauds Social media fraudsters commit multiple e-commerce frauds and payment scams which result in a damaged reputation, business loss, and lack of trust in the eyes of the customer.	User-Generated Content Benefits What a brand should do is uplift UGC content and make it visible on their social media profiles. In this way, new followers start trusting your products and services and provide the opportunity to reach untouched markets.

The Future of Shopping: Trends Shaping E-commerce

• We can expect future shopping trends that will be created by social media, fundamentally altering e-commerce.
• Businesses could make use of AI machine-learning algorithms to predict consumer trends and preferences. 
• Live shopping could become mainstream where consumers actively engage with live influencers. 
• Blockchain technology could be integrated into social media marketplaces for advanced security and protection. 
• Facebook Metaverse could revolutionize shopping and elevate social commerce beyond imagination. Sustainable practices could encourage brands to be eco-friendly and considerate towards the climate.

Conclusion

In America, social media and e-commerce exist side by side as two essential components of the digital world. Where one, bridges connections, engagement, and awareness, while the other for transactions, and to foster a reliable way of connecting consumers to buyers. Together they can be utilized to produce a powerful shopping ecosystem for American users.