Social Commerce -Challenges and Future Prospects

Abstract Social commerce (s-commerce) represents the convergence of social media platforms and e-commerce, enabling consumers to discover, evaluate, and purchase products directly within social environments. Coined in 2005 with Yahoo!’s Shoposphere, s-commerce has evolved from basic user ratings to sophisticated in-app shopping, live streaming, and AI-driven personalization. This paper provides a systematic review of its historical development, key theoretical foundations, current market dynamics, major platforms, consumer behaviour impacts, real-world case studies, persistent challenges, and emerging opportunities. Drawing on recent market data (2025–2026), the global social commerce market is valued at approximately USD 1.5–2 trillion in 2025 and is projected to grow at a CAGR of 29–37% through 2030–2034, reaching multi-trillion-dollar scales. Key drivers include short-form video, creator economies, and frictionless checkout. While opportunities abound in personalization and impulse buying, challenges such as data privacy, trust deficits, and platform integration remain critical. The paper concludes with strategic recommendations and future research directions for businesses and academics.