On August 30th, the official website of ARK saidThe emergence of social e-commerce is a "win-win" for consumers and retailers, but it will have a great impact on traditional e-commerce..

Earlier, TikTok announced that it would continue to expand its partnership with e-commerce platform Shopify Inc, adding in-app shopping function, and announced that it would conduct a pilot test of "TikTok Shopping" among Shopify Inc merchants in the United States, Britain and Canada in the coming weeks.

Social e-commerce will pose a threat to traditional e-commerce

ARK said the advent of social ecommerce could make shopping easier for consumers and a "win-win" for retailers to reach global customers more easily. With the influence of platforms such as Facebook Inc, Instagram, TikTok, Snapchat and Pinterest, retailers can reach millions or even billions of customers.

However, this will pose a threat to traditional e-commerce, and Amazon.Com Inc's moat, "one-click checkout and fast delivery", is now everywhere. In addition, social media sites can personalize our shopping experience, and the combination of convenience and personalization can enhance user participation.

Social ecommerce is likely to grow at a compound annual growth rate of 50 per cent over the next five years, from about $390 billion to nearly $3 trillion, according to ARK.

ARK concluded that social e-commerce combines the convenience of online shopping with the network effects of social media, and these strong growth drivers may have an impact on traditional e-commerce.

In FAAMG, only Amazon.Com Inc did not reach a new high.

This year, in FAAMG, except for Amazon.Com Inc, Facebook Inc, Alphabet Inc-CL C, Apple Inc and Microsoft Corp either set new highs or are on the road to innovation.

Amazon.Com Inc released its Q2 results on July 30th, Amazon.Com Inc's first financial report since Bezos left office. Amazon.Com Inc's net sales in the second quarter were $113.08 billion, up 27 per cent from a year earlier, while net profit was $7.778 billion, up 48 per cent from a year earlier, according to the financial report.

Although the overall trend of its e-commerce business is still on the rise, due to the gradual recovery of the epidemic, consumers' enthusiasm for online shopping has waned, and Amazon.Com Inc's e-commerce business sales growth has slowed down compared with the same period last year, which will make the investment market cautious about Amazon.Com Inc's future e-commerce business growth.

In addition, some analysts pointed out that Shopify Inc, Amazon.Com Inc's competitor in the field of e-commerce business, is also rising rapidly. Because of Amazon.Com Inc's high service rates, the SaaS e-commerce service model provided by Shopify Inc can help build independent websites and become more attractive to third-party merchants. At present, its platform GMV has surpassed ebay and occupies 6% of the e-commerce market share.