Which social commerce platform delivers better ROI?

Social commerce has evolved from experimental feature to revenue driver, with US sales expected to hit $107 billion in 2025 according to eMarketer. For brands evaluating where to invest resources, the choice increasingly comes down to two platforms: TikTok Shop and Instagram Shopping. While both enable in-app purchasing, they deliver fundamentally different customer journeys, conversion mechanisms, and ROI profiles that demand strategic consideration.

The conversion rate divide

TikTok Shop currently outperforms Instagram Shopping on pure conversion metrics. According to Billion Dollar Boy’s 2025 social commerce analysis, TikTok Shop drives conversion rates between 8–12% through short-form video content, compared to Instagram Shopping’s 2–4% average. This gap reflects structural differences in user intent and content format. TikTok’s “For You” algorithm surfaces products mid-scroll within entertaining content, reducing purchase friction. Instagram Shopping requires users to actively click through product tags in static posts or Stories, adding decision-making steps that dampen conversion momentum.

The platform architectures create distinct purchase pathways. TikTok Shop integrates checkout directly within the video feed, enabling impulse purchases without leaving the content experience. Instagram Shopping redirects users to either in-app checkout or external websites, introducing navigation barriers that particularly impact mobile conversion rates. For products under $50 where spontaneous purchasing dominates, TikTok’s seamless flow demonstrates measurable advantages.

Platform performance comparison

Audience demographics and purchasing power

Instagram Shopping commands an older, higher-income demographic. Meta’s 2025 data shows 35% of Instagram users are aged 35–54, with household incomes skewing 20% higher than TikTok’s user base. This translates to higher average order values – Instagram Shopping transactions average $95 compared to TikTok Shop’s $67, according to Shopify’s social commerce benchmarking report. Brands selling premium products, considered purchases, or targeting established consumers see stronger per-transaction value on Instagram despite lower conversion rates.

TikTok Shop dominates Gen Z purchasing behavior, with 67% of users aged 18–34. Nielsen research from 2025 found that 48% of Gen Z consumers have purchased directly through TikTok Shop, compared to 31% through Instagram Shopping. This younger demographic exhibits different purchase patterns: higher transaction frequency but lower order values, greater responsiveness to creator recommendations, and stronger engagement with limited-time offers and viral product trends.

Creator partnership economics

The platforms incentivize creator collaborations differently, impacting partnership ROI. TikTok Shop’s affiliate commission structure typically ranges from 5–20%, with creators earning directly on sales generated through their content. This performance-based model aligns creator and brand interests around conversion rather than awareness metrics. Instagram Shopping partnerships still predominantly operate on fixed-fee sponsored content arrangements, disconnecting creator compensation from actual sales performance.

TikTok Shop’s creator marketplace provides structured tools for discovering affiliates, negotiating commission rates, and tracking sales attribution. Instagram requires brands to manually coordinate product tagging permissions and lacks native affiliate tracking, complicating performance measurement and creator accountability. For brands prioritizing measurable creator ROI, TikTok Shop’s infrastructure reduces administrative overhead while improving attribution accuracy.

Strategic allocation framework

Platform selection shouldn’t be binary. Brands with diverse product catalogs benefit from portfolio approaches: using TikTok Shop for impulse-friendly items under $75 targeting younger demographics, while positioning Instagram Shopping for considered purchases, premium products, and audiences aged 35+. The optimal strategy maps product characteristics and customer profiles to each platform’s structural advantages rather than pursuing exclusive channel commitments.

The social commerce landscape continues evolving rapidly, but current performance data reveals clear patterns. TikTok Shop delivers superior conversion rates and Gen Z engagement, while Instagram Shopping provides access to higher-income demographics and larger transaction values. ROI optimization requires matching these platform strengths to specific brand objectives rather than chasing competitor presence or platform hype.