Social commerce soars but barriers like data security remain — Retail Technology Innovation Hub

39% of US consumers have made a purchase on social media and would do so again, according to research by Mintel.

2,000 people were surveyed for this.

With 90% aware of brand pages/accounts on social media, and only 10% who say they avoid brands’ pages, the opportunity for engagement is huge, MIntel believes.

Katie Hansen, Retail and E-commerce Analyst at Mintel, says: “Social commerce is the next evolution of e-commerce and will benefit from Americans’ heavy use of online shopping in recent years.”

“As with the adoption of online shopping, it will take time for consumers to become comfortable purchasing items via social media, and even more time for them to do so on any kind of regular basis, but the category will see a boost as a result of increasing engagement from younger consumers as they grow into adulthood and earn more money.”

“That said, social commerce will in no way replace traditional e-commerce or in-store shopping, but it will become a key part of their shopping repertoire.”

While consumers are increasingly curious about social commerce, barriers such as data security and shipping hold some back from participating.

Two in five of those surveyed haven’t made a purchase directly on a social media platform due to the lack of trust in the security of their payment information, while 23% say it’s because they are worried they will never receive their purchase.

“As with any new concept, consumers still need a fair amount of education and reassurance on the process, as they are concerned that their data might not be secure and/or that they’ll never receive the item they purchase,” says Hansen.

“Brands will need to demonstrate to consumers how shopping on social media is quite similar to shopping via a website or mobile app and how, in fact, social commerce can even further streamline the process.”