This research paper examines the concept of E-Commerce 2.0 and Social Commerce and their growing importance in the digital marketplace. The study focuses on how social commerce has emerged as an extension of traditional e-commerce by integrating social media platforms, user-generated content, and interactive technologies. It highlights the role of social interactions, influencer marketing, and community engagement in shaping consumer behaviour and purchase decisions. The paper also analyses the working mechanism, components, benefits, and consumer behaviour patterns in social commerce.