A social commerce application is a web or mobile application that enables users to buy products and services using their social connections. Social commerce apps typically allow users to create a profile, follow other users, and send them virtual "gifts" in exchange for discounts on items they want. Users can also post comments about the gifts they receive from their friends and view sales trends for individual merchants.

Social commerce apps are similar to most other retail apps with the exception of shopping apps, which are also considered social commerce. Groupon is one of the more common examples of a social commerce app.

• A social media app focused on shopping. Users post a product or deal they find in a store with picture, description and price. Users can see a wall showing the other users posted near them via zip code. Businesses can promote certain posts based on business subscriptions.

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Social commerce apps can grow quickly by capturing the attention of a large group of users with an in-app promotion, such as a “flash sale” or “limited time offer.” Having limited time offers helps to build customer loyalty and increases the app store rankings of social commerce apps that are able to drive viral growth. Users are more likely to return to social commerce apps if they feel that their purchase was worth it. Social commerce apps should also provide incentives for returning customers, such as points for referring new users or special discounts for existing users.

Social commerce apps rely on customer-facing social interactions or the development of a network of users in order to generate revenue. If your app is built upon the premise that users will share their information with friends as a condition of using the app, you need to make sure that your privacy policy is clear about what information is shared with third parties. There are also compliance risks associated with payments processed across social media platforms.

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