Canada Social Commerce

The post-pandemic recovery has given rise to an increaseing in use of social media sites by consumers for many of their shopping needs.  As a subcategory of e-commerce, social commerce allows consumers to directly purchase goods and services from sites like Instagram and Facebook rather than from other sites like Amazon or a particular brand’s website.

With over 34 million social media users, Canada has high market potential for social commerce.  Current figures value the industry at almost $USD 6 billion in 2023, with conservative growth projections estimating the market size to increase to over USD $11 billion in five years.  Given the relatively low barriers to accessing Canadian consumers through social media compared to other methods such as in-store sales or other online shopping methods, U.S. companies seeking to expand their presence in Canada should strongly consider including social media in their market strategies. 

Direct integration methods:  Retailers can opt to establish virtual ‘stores’ directly on their social media pages. Similarly structured to their own websites, companies can display the products on offer as well as utilize social media’s in-app payment methods to better engage consumers.  Furthermore, retailers can produce social media posts advertising a particular product with a ‘tag’ that allows consumers to shop directly within the app. 

Strong product distribution chains:  Any e-commerce market strategy must be balanced with strong distribution and logistics networks that allow for fast and efficient transportation of goods and services from retailer to consumer. Particularly when shipping internationally to the Canadian markets, retailers should ensure that they have reliable and trustworthy partners at each stage of the delivery process to maintain the appeal of e-commerce for consumers.

For more information about opportunities for U.S. companies involving social commerce in Canada, and how the U.S. Commercial Service in Canada assists U.S. exporters, visit www.trade.gov/canada

For further information contact: Commercial Specialist Cat Le