India-based social commerce to value USD 7 bln by 2025, Redseer reveals

According to Mint, almost 80% of shoppers on social commerce platforms come from towns and cities beyond the top metros. While for horizontal platforms, including Flipkart and Amazon India, almost 40% of their customer base comes from top metros, the remaining 60% shoppers are from non-metro towns.

Furthermore, Redseer reported that there are three kinds of social commerce models currently prevalent: the reseller model, group buying, and live commerce. The reseller model is currently the largest, as it allows resellers to sell products from suppliers, with social commerce platforms taking care of shipment and logistics. The total reseller market in India was pegged at USD 600 million in 2020, according to the company. 

On the other side, when it comes to categories, the social commerce sector has deeply penetrated into wear and accessories, which are largely unbranded and have low ticket size. Currently, fashion dominates the sales on these social commerce platforms, with significant potential for home furnishing, costume jewellery, and electronics accessories, to grow on these platforms among tier-II shoppers.