Social shopping is quickly gaining on ecommerce, with one in four people opting to shop via scrolling and swiping. That’s according to a report released by Horizon Media. “The Rise of Social Shopping,” is a research report from the Why Group, Horizon Media’s intelligence centre, and Night Market, the agency’s commerce affiliate.
Beyond Gen Z adopters, Millennials and Gen X are also quickly shifting online buying habits to social platforms including TikTok, Pinterest, Snapchat, Facebook and Instagram. In addition to live shopping, gaming platforms such as Twitch and Roblox are also now connecting brands to buyers, too.
Among social shoppers, 80% say they make a purchase twice a month and 73% expect to purchase at least once a month in the upcoming year. Millennials are most likely to be frequent shoppers. Those not currently shopping on social are open and ready with 75% of Gen Z, 76% of Millennials and 61% of Gen X saying they feel comfortable purchasing on social media.
More than half of products purchased through these platforms are brand names, with purchases spanning categories. More than 40% of purchases include Apparel, Beauty, Electronics and Personal Care. Impulse buys are big, for items including trending and seasonal products.
Although the research is based on a survey conducted in April and May with U.S. social and online shoppers aged 18 to 49, Caroline Bergeron, SVP Digital for Horizon Media Canada, says the behaviour of Canadians is very similar. “We’re seeing social shopping becoming a bigger force in driving sales, driving brand discovery, driving product discovery and in generating new purchases, impulse purchases and creating consideration. Someone can go from not knowing anything about a brand to fully considering purchasing it, or sometimes even purchasing it, within seconds.”
Bergeron adds that social shopping is shortening the path to purchase. “We’re seeing people come across new products, new brands, as they’re browsing social content and seeing demos, seeing reviews and it really builds a trust factor.”
Among social shoppers, 58% of Millennials have purchased from a livestream and would again, while 56% of Gen X are open to trying. This extends to virtual shopping with 48% of Millennials planning to do this again, and 40% of Gen X open to it.
The market opportunity is huge, with social commerce revenue projected to reach $6.2 trillion USD globally by 2030, according to Statista. Instagram, Facebook, YouTube and Tik Tok have already integrated shopping into their user experience and more brands are joining in. More than 72% of social shoppers say they could replace at least some of their online shopping with social shopping.
Beyond Tik Tok, there is significant opportunity across Meta properties and YouTube, especially with older consumers. Facebook is not only one of the most used platforms, it’s also the most trusted for social and non-social shoppers alike.
The report says that the biggest hurdle to more widespread acceptance of social shopping is scammers and the trustworthiness of online shopping. Brand verification is key and a large opportunity to generate sales. Marketers need to invest and promote safety in their brands. Once this happens, they will capture more market share.
