Purchase barriers slow social commerce growth

Social commerce will only deliver a modest 7% of US e-commerce sales by 2025, with many consumers lacking trust in this channel, according to research firm Mintel.

Why social commerce matters

Social commerce has long been discussed by marketers as a channel with huge potential; as yet, however, the reality lags well behind such optimistic thinking. Understanding the factors which discourage people from shopping in this way is a vital step.

Takeaways

• Social commerce made up 5% of e-commerce sales in 2022, and that percentage will only inch upwards over the next couple of years, according to Mintel.
• This is partly because consumers skew toward familiarity, with 41% reporting they’re more comfortable purchasing from a brand website over a social channel.
• Trust is another barrier to social purchases: 40% of consumers say they’re wary of how their payment information is stored on these platforms.
• Twenty-five percent are concerned that they will never receive a purchase made through social platforms.

The long view

“This doesn’t mean that social commerce has reached a dead end for the US consumers. It will just take time for shoppers to adjust and adapt to this new way of shopping,” Katie Hansen, senior analyst of retail and ecommerce at Mintel, said.