Social commerce has shoppers' attention, but brands must build trust

Current reality vs. opportunity

While many new capabilities are coming in the near future, there’s evidence that social commerce already has momentum. According to Mintel, 39% of US consumer said they made a purchase on social media and would do so again. The adoption rate is even higher in the age range of 25-34-year-olds, of which 61% shop on social media.

As the platform plans indicate, there are also ample opportunity to increase that number within view.

Social commerce is often dependent on interfacing directly with brands on social media, and 90% of users are aware that these pages and accounts exist.

Of those users, one in 10 say they avoid brand pages on social media – a low number, given that a direct tie-in with a brand overtly seeking to market products may have been considered a turnoff in other eras of media.

Factor in how platforms like TikTok and YouTube are using video to make content from influencers and users shoppable, and there’s even more potential to create opportunities for engagement that don’t require navigating directly to a brand page.

The trust factor

Digital adoption often requires reaching a point of trust with users, especially when it comes to purchase and delivery of items. According to Mintel, current barriers include security and shipping:

• About 38% of consumers say they haven't made a purchase directly on a social media platform due to concerns about the security of payment information.
• Meanwhile, 23% of consumers say they haven’t made a purchase because they are worried they will never receive a product.

This offers a message for brands and platforms: Alongside new technology and great shopper experience, education about social commerce processes are necessary.

"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,” said Katie Hansen, retail and ecommerce analyst at Mintel, in commentary issued with the report. “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.”

Inspiring a purchase goes beyond getting the attention necessary for a like or share. This means brands must also forge a connection with users. One important step toward doing so is to ensure that users see themselves reflected on social media. That means reflecting the diversity of audiences present on these platforms, Hansen said.

Growing alongside ecommerce

Change can take time. Ecommerce grew steadily over 20 years as platforms like Amazon and Shopify built, with rapid acceleration in the last two years.

When judging the adoption curve of this area, consider that many of the tools for social commerce are just being put in place now. The factor that will push them into wide use may have yet to arrive.

When it comes to decisions about investing time and energy toward social commerce, it’s also worth remembering that shopping is likely to take place across multiple channels. Shoppers want options to buy an item easily and have it delivered to them wherever they are. Social platforms are where many potential customers are gathering, so they stand to be a viable option for shoppers. Yet it's worth pointing out that this is one of a growing number of choices consumers have about where to shop. They're also seeking out ecommerce marketplaces, Shopify sites, delivery services and brick-and-mortar stores, as well. And all of those channels are making digital upgrades to work together more seamlessly, as well.

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