Social media platforms are reshuffling the cards in e-commerce. Sales on social networks should grow 3 times faster than traditional e-commerce. This is shown by the survey done in India, China, the United States, Great Britain and Brazil.
A purchase within the social media platform
Social commerce is the fact that a person lives the shopping experience entirely within a social media platform, such as Instagram or Tiktok, from the discovery of the product to its payment. Growth in social media shopping will be driven primarily by Gen Z and millennials according to the study. Generation Z is people up to 24 years old. As for millennials, these are people over the age of 41. Musicians are looking for the extra income source and there was a petition to the Spotify developers to create a similar ‘in-built’ shopping system as it’s visible on Instagram. It could become reality because Spotify is always taking care of the musicians. So, in this case, musicians may sell their product (brand related – merch included) in the app. So, you can buy Spotify playlist followers, get more organic reach and use the app for selling branded merchs without hesitation.
The center of gravity of commerce on the Internet is moving towards social networks, where the customers are. On the downside, half of social media users say they’re concerned that purchases on social media aren’t protected or refunded properly. Lack of trust is the biggest barrier to adopting this type of purchase, as was the case with e-commerce in its early days. Product return, refund and exchange policies are areas for improvement.
Clothing purchases lead
By 2025, social commerce purchases worldwide will be primarily in clothing (18% of all social commerce), consumer electronics (13%) and home decor (7 %). Food and snacks are also an important product category (13%), although sales are made almost exclusively in China. Beauty and personal care, while smaller in terms of social commerce sales, is expected to rapidly gain traction in e-commerce and capture over 40% of average digital spend for this category in key markets by 2025
Another finding from the survey is that consumers in developing countries are more likely to use social commerce and use it often. Eight out of ten social media users in China use social commerce to make purchases for a given category, while the majority of social media users in the UK and US have yet to make a purchase through social commerce.
Customers in developed countries more sensitive to promotions
Customers in China, India and Brazil care more about features that help them discover and evaluate potential purchases, while those in the UK and US place more importance on prices and discounts. Finally, the issue of trust is more important for older generations than for younger generations.
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