The digital landscape in the UK has reached unprecedented levels of connectivity, with 97% internet penetration and 79% of the population—approximately 54.8 million people—actively engaging on social media platforms. This digital saturation has created a fertile environment for innovative marketing and sales strategies, particularly for small businesses.

Small businesses form the backbone of the UK economy, comprising 99% of all companies and employing nearly half the nation’s workforce. As these enterprises navigate an increasingly competitive marketplace, many turn to emerging platforms like TikTok and social commerce solutions to drive growth, build resilience, and connect with new customer segments.

The convergence of entertainment and shopping through social commerce represents one of the most significant shifts in consumer behaviour since the rise of e-commerce itself. For small businesses with limited marketing budgets, these platforms offer cost-effective ways to reach highly targeted audiences and convert engagement directly into sales.

The fusion of entertainment and commerce we’re seeing on platforms like TikTok has fundamentally altered how small businesses approach digital marketing,” explains Ciaran Connolly, Director at ProfileTree. “What’s particularly exciting is how these platforms democratise visibility—a small local shop in Northern Ireland can now compete for attention alongside major retailers through creative, authentic content that resonates with specific communities.”

TikTok’s Impact on UK Small Business Marketing

TikTok has evolved from a niche entertainment platform to a critical marketing channel for businesses of all sizes. By early 2025, TikTok’s UK user base reached 24.8 million adults, representing a 9.2% increase in ad reach year-on-year. This rapid growth trajectory makes TikTok one of the fastest-expanding social platforms in the UK market.

User Demographics and Engagement

The platform’s demographic reach is particularly valuable for businesses targeting younger consumers:

• Age Distribution: 74% of 18-24-year-olds in the UK now use TikTok, making it the leading platform for reaching Gen Z and younger Millennials.
• Time Spent: Young adults (18-24) spend an average of 64 minutes daily on TikTok, compared to 13 minutes for UK adults.
• Gender Balance: TikTok’s audience is nearly evenly split, with 52% female and 48% male users in 2025, offering broad appeal across gender demographics.
• Regional Adoption: While initially concentrated in urban areas, TikTok usage has expanded significantly across all UK regions, with robust growth in Northern Ireland and Scotland.

Business Impact and Marketing Effectiveness

TikTok’s distinctive short-form video format has proven exceptionally effective for small businesses across multiple dimensions:

• Brand Storytelling: The platform’s narrative-driven content style allows businesses to showcase their personality, values, and behind-the-scenes operations in ways that traditional advertising cannot match.
• Viral Marketing Potential: TikTok’s algorithm-driven content distribution enables even small businesses with minimal follower counts to achieve viral reach through compelling content.
• Authentic Engagement: Users respond more positively to genuine, unpolished content from small businesses than to highly produced corporate content.
• Ad Performance: TikTok ads reach 45% of all UK adults aged 18+ and 36.6% of the UK’s internet user base, with engagement rates often exceeding those of other social platforms.

Small Business Success Stories

The platform has proven particularly valuable for businesses in creative sectors, local retail, and service industries:

• Independent fashion boutiques using TikTok to showcase new arrivals and styling ideas
• Local food establishments are creating content around signature dishes and preparation methods
• Service-based businesses demonstrate their expertise through how-to and tutorial content
• Craft and artisan businesses showcasing their creation processes and unique selling points

These businesses leverage TikTok’s visual nature to communicate value propositions that might be difficult to convey through text or static imagery alone.

The Social Commerce Boom

Integrating shopping functionality into social media platforms has created a seamless path from discovery to purchase, with substantial implications for UK small businesses.

Market Growth and Consumer Adoption

The UK social commerce market is experiencing explosive growth:

• UK social commerce sales are projected to reach £7.4 billion in 2024 and nearly £16 billion by 2028, representing a compound annual growth rate (CAGR) of 21.2%.
• 56% of UK consumers have already made purchases directly through a social or entertainment platform, with this figure expected to rise further throughout 2025.
• In 2025, 82% of consumers use social media for product discovery and research, with platform preferences varying by category and demographic.
• Platform preferences for product research show YouTube leading (52%), followed by Facebook (45%), Instagram (38%), and TikTok (34%).

Evolving Features and Functionality

Social commerce capabilities continue to evolve rapidly, with several key developments shaping the landscape:

• Live-stream shopping events allow real-time product demonstrations and Q&A sessions
• Shoppable posts and videos enable immediate purchase without leaving the platform
• AI-driven personalisation targeting users with products based on their engagement history
• Augmented reality (AR) try-on features for apparel, accessories, and cosmetics
• User-generated content integration showing products in real-world contexts

These features democratise access to advanced e-commerce capabilities previously available only to larger enterprises with substantial development resources.

Consumer Spending Patterns

The confidence in social commerce is reflected in consumer spending behaviour:

• 86% of UK consumers made an online purchase in the last month
• 36% spent £200-£400 on online purchases, showing strong consumer confidence in digital retail channels
• Mobile shopping continues to dominate, with 73% of social commerce purchases completed on smartphones
• Impulse purchasing is notably higher in social commerce environments, with 62% of consumers reporting unplanned purchases through social platforms.

Small Business Success and Industry Impact

The UK’s small business sector represents a vital economic force increasingly leveraging digital platforms for growth.

Small Business Landscape

The scale and significance of small businesses in the UK economy cannot be overstated:

• The UK has 5.5 million small businesses as of 2024, accounting for 99% of the business population
• These businesses generate £1.8 trillion in turnover, representing approximately 52% of all private sector turnover
• Small businesses employ 16.7 million people, approximately 61% of the private sector workforce
• Start-up rates have increased by 12% year over year, partly due to the accessibility of digital marketing and sales channels.

Digital Marketing Investment

Small businesses are strategically reallocating marketing budgets to capitalise on social media effectiveness:

• Social media ad spend in the UK is projected to reach £9.95 billion in 2025, with a 13% year-on-year growth
• 60% of UK businesses now have a dedicated SEO strategy, with 56% specifically employing local SEO tactics
• Content created for platforms like TikTok is increasingly repurposed across other marketing channels, maximising return on content investment
• Digital marketing spend by small businesses has increased by 27% since 2023, with social commerce driving much of this growth

E-commerce Integration

The boundaries between social media and e-commerce continue to blur:

• E-commerce users in the UK are expected to reach 62.1 million in 2025
• Over 60% of British consumers now use smartphones to make online purchases
• For Gen Z consumers, TikTok (41%) and Instagram (53%) are increasingly the preferred platforms for shopping inspiration and transactions.
• The average small business now sells through 3.4 different digital channels, up from 1.8 in 2022

Fashion, Retail, and the Power of Social Video

Social commerce has particularly transformed the fashion and retail sectors, with video content driving discovery and purchase decisions.

Market Size and Growth

The fashion e-commerce sector continues to expand rapidly:

• The UK’s fashion e-commerce market is expected to hit £86 billion by 2030
• Over 25% of textile, clothing, and footwear sales are now made online
• Social commerce accounts for approximately 18% of online fashion sales, up from 7% in 2022
• Mobile shopping represents 71% of fashion e-commerce transactions

Content Strategy and Effectiveness

Video content has proven exceptionally effective for fashion and retail businesses:

• Fashion and beauty brands are leading on TikTok, with #fashion tagged in over 63 million posts globally
• Product demonstration videos achieve 3- 4x higher conversion rates than static imagery
• User-generated content featuring products receives 28% higher engagement than brand-created content
• “Shop with me” and styling videos have emerged as particularly effective formats for driving fashion purchases

Technology Integration

Advanced technologies are enhancing the social commerce experience:

• 50% of fashion executives see generative AI as key for product discovery and recommendations
• 82% of customers want AI to reduce shopping research time
• AR try-on features increase purchase confidence and reduce return rates by up to 30%
• Virtual shopping assistants and AI stylist tools are becoming increasingly sophisticated and widely adopted

Practical Tips for SMEs

For small businesses looking to capitalise on these trends, several practical strategies stand out as particularly effective.

Content Strategy

Content approach is critical to success on TikTok and other social commerce platforms:

• Focus on short-form, authentic video: TikTok users respond best to creative, relatable content that doesn’t feel overly produced or commercial
• Showcase personality: Highlight the people behind the business and authentic brand stories
• Demonstrate products in action: Show practical applications and real-world benefits rather than simply listing features
• Leverage trending formats: Adapt current viral trends to showcase products or services in relevant ways
• Maintain consistent posting: Algorithms favour accounts with regular content schedules

Technical Implementation

The technical aspects of social commerce require attention to maximise effectiveness:

• Optimise for mobile and social search: Over 42% of UK shoppers start their purchase journey on search engines, but social platforms are rapidly closing this gap
• Ensure seamless checkout processes: Minimise steps between discovery and purchase
• Leverage platform analytics: Use platform-provided insights to refine targeting and content strategy
• Implement proper tracking: Ensure attribution models correctly capture the impact of social commerce on overall sales
• Test multiple formats: Experiment with various content types, from short videos to live streams, to identify what resonates with your specific audience.

Community Building

Building engaged communities around a brand creates a sustainable advantage:

• Respond to comments and messages promptly: Engagement signals to algorithms that content is valuable
• Create two-way conversations: Ask questions and solicit feedback from followers
• Feature customer content: Showcase user-generated content to build a community and provide social proof
• Develop platform-specific communities: Tailor community-building approaches to the unique culture of each platform
• Collaborate with micro-influencers: Partner with relevant creators who have highly engaged followers in your target market

Trust and Security

As social commerce grows, trust factors become increasingly important:

• Maintain transparent policies: Communicate shipping, returns, and privacy policies
• Showcase authentic reviews: Highlight genuine customer feedback across platforms
• Secure transaction processes: Ensure payment processing meets the highest security standards
• Protect customer data: Implement robust data protection practices that exceed regulatory requirements
• Address concerns publicly: Respond to customer issues openly and constructively

Preparing for Future Developments

Several emerging trends will likely shape the future of social commerce for UK small businesses:

Voice Commerce Integration

Voice-activated shopping through smart speakers and digital assistants is poised to integrate with social commerce:

• 43% of UK households now own at least one smart speaker
• Voice-initiated shopping is projected to reach £5.6 billion in the UK by 2026
• Social platforms are beginning to explore voice command integration for shopping features

Social Search Evolution

Platform-specific search functions are becoming increasingly sophisticated:

• 38% of Gen Z users now start product searches on social media rather than traditional search engines
• Visual search capabilities allow users to find products based on images rather than text queries
• Social platforms are developing enhanced search algorithms specifically optimised for product discovery

Decentralised Commerce

Blockchain and cryptocurrency integration are beginning to influence social commerce:

• NFT-based loyalty programmes are emerging as engagement tools
• Cryptocurrency payment options are being tested on several major platforms
• Decentralised marketplaces are creating new opportunities for peer-to-peer commerce

Conclusion

TikTok and social commerce are fundamentally reshaping the UK small business landscape in 2025, offering unprecedented opportunities for growth, engagement, and sales conversion. The platforms provide cost-effective routes to market that were previously unavailable to businesses with limited marketing resources.

Businesses that embrace these platforms and invest in high-quality, authentic content are best positioned to succeed in the evolving digital marketplace. The integration of entertainment and commerce creates powerful opportunities to connect with consumers in more meaningful ways than traditional advertising allows.

For UK small businesses, particularly those in retail, fashion, and consumer goods sectors, social commerce represents an additional sales channel and a transformative approach to business growth that merges brand building, community engagement, and direct sales into a cohesive strategy.

As we move into 2025, the businesses that most effectively adapt to these evolving platforms will gain significant competitive advantages in customer acquisition, retention, and lifetime value, regardless of their size or marketing budget.

Additional Resources

For businesses looking to enhance their social commerce and digital marketing strategies, ProfileTree offers specialised services in:

• Digital marketing in Northern Ireland
• Small business digital marketing statistics
• Social media statistics
• Gen Z social media statistics
• The shocking time spent on social media statistics
• Purchasing guide social media shopping statistics
• Content marketing services