In an increasingly digital world, younger shoppers still crave personal engagement, at least the perception of actual interactions. Nectar Social, a Seattle-area startup, is closing this gap using artificial intelligence to help brands connect with Gen Z and Gen Alpha on social media. With AI, the company is creating a modern-day version of the mall experience for digital natives.
Bringing the Mall Culture to Social Media
As e-commerce dominates the retail industry, many younger consumers feel disconnected from traditional online shopping. According to one Gen Z shopper, the appeal of the in-person mall experience was the interpersonal connection, especially engaging with sales associates and discovering products organically.
“You’re way more likely to buy something if you have an actual rapport with somebody,” she explained.
Founded in mid-2023 by sisters Misbah Uraizee and Farah Uraizee, Nectar Social leverages AI to replicate the experience of stepping into a mall. The platform engages with consumers directly on social media, helping them discover products, making recommendations, and fostering brand loyalty through real-time interactions.
Founders With a Tech Background
Misbah and Farah Uraizee bring extensive experience from major tech firms, including roles at Meta in product management and engineering. Their deep understanding of social media engagement has helped shape Nectar’s approach to AI-driven social commerce.
Shortly after launching, Nectar secured a $2 million pre-seed funding round led by Seattle’s Flying Fish Ventures. The company operates an engineering hub in Bellevue, Washington, and is establishing a sales and marketing office in New York City. Currently, the startup has 15 employees and six open roles as it scales operations.
Rethinking Digital Marketing
Traditional digital marketing relies on paid ads, email campaigns, and text messages. These have become expensive and less effective at reaching the right audience. According to the founders, social commerce presents a more organic and engaging alternative.
Misbah Uraizee believes that the focus now is on “social commerce.” She explains that a brand showing up on whatever social media platform its consumers use can more effectively reach the target customer base and help them discover products, make recommendations, increase engagement, and build a long-term relationship that leads to more sales.
Unlike conventional advertising, where conversions happen immediately or not at all, social commerce allows for longer engagement cycles. A purchase might happen directly after an interaction or weeks later “because this consumer loves you so much … they’ve built a relationship,” Misbah added.
AI as a Personalized Shopping Assistant
Skeptics may wonder whether AI-driven conversations feel authentic, but younger shoppers appear open to the experience. According to teen shoppers, today’s consumers are overwhelmed by endless online choices, leading to product dissatisfaction. An AI assistant that simplifies decision-making could create stronger brand loyalty.
The Future of Social Commerce
Nectar’s mission is to convince brands that social platforms are evolving into the following major retail hubs.
“If brands aren’t adapting to this kind of new wave of consumer behavior, they’re going to lose access to that entire generation,” said Farah Uraizee. “They’re kind of missing out on this wave of social platforms now becoming the storefront,” she added.
Nectar competes with companies like Shanghai-based SuperOrdinary, valued at $800 million, Algolia, Rebuy, and Loup. However, the founders believe their edge is demonstrating measurable ROI through data-driven insights.
“If you look at the current landscape of tools and platforms out there for these businesses, there’s a big gap trying to bridge social commerce to engagement and vice versa, and measuring the ROI from that,” explained Misbah Uraizee. “That’s our core thesis.”
As brands rethink their engagement strategies, Nectar Social positions itself at the forefront of this shift. It uses AI to transform how younger generations discover and connect with their favorite brands online.
