75% of consumers worldwide will purchase products through social media

Recently, Essence, a world-renowned data monitoring organization , conducted a consumer behavior survey on 2,200 people from 11 countries and found that brands have huge opportunities in social commerce, with three-quarters of respondents saying they would purchase goods through social media.

The report also shows that 41% of respondents have made or intend to make a purchase through social media channels, and four out of five consumers see live streaming and conversational commerce as key mechanisms for facilitating purchases.

Essence estimates that the global social commerce market size was approximately US$474.8 billion in 2020 and is expected to grow at a compound annual growth rate of 28.4% from 2021 to 2028.

Globally, China is the clear leader in social commerce, which will account for 13% of total e-commerce sales. 93% of consumers said they would shop on social media in the future; 90% of consumers said they had bought items during live broadcasts; clothing (64%), groceries (64%) and takeout (61%) were the most purchased categories; 50% of consumers said the average spending would exceed RMB 200 per transaction.

In the United States, 66% of consumers said they would shop on social media in the future; 66% of consumers said they had bought items during live events, and 88% of them said they liked the shopping experience. Clothing (30%), beauty (26%) and home furnishings (24%) were the most purchased categories; more than 57% of consumers said the average spending per transaction was between $100 and $200.

In the UK, 70% of consumers said they would shop on social media in the future; 52% of consumers said they had bought items during live events, and 85% of them said they liked the shopping experience. Clothing (23%), beauty (20%) and home electronics (20%) were the most purchased categories; more than 50% of consumers said the average spending per transaction was between £31 and £100.

In social commerce, the most important factors that influence consumer decision-making are: ratings and reviews ( 36%), promotions and discounts (36%), and product pages (35.5%).

Essence said that just like any other shopping experience, the social commerce experience needs to be seamless and complete. Other factors that drive sales on social platforms throughout the purchase process include the convenience of social media, shipping options, advertising, payment options, brand or seller awareness, pre-sale engagement and influencer promotion.

Merchants also need to be aware of the barriers to entry in social commerce. For example, many shoppers are discouraged by high shipping costs for products purchased through social commerce. Most importantly, if the product or service being offered is not authentic, safe, or satisfactory, there is no place to hide on social media. Merchants should constantly listen to and address negative reviews and ratings left by customers.

worldwide

Social e-commerce