Online shopping continues to grow at a rapid pace. By 2021, revenue from eCommerce sales is projected to hit $4.9 trillion. Despite the industry’s incredible growth in just a few short decades, online retail still makes up only a small fraction of the total retail sales worldwide — and that includes sales from eCommerce giant Amazon. As online retailers try to close that gap, they will depend more on social media and emerging technology to increase their sales.
Despite data scandals dominating news feeds, consumers remain committed to their chosen platforms. Facebook, the biggest recipient of backlash over data and privacy concerns, did see a dip in popularity (-15% since 2016) while Instagram (+29%) and Snapchat adoption grew (+96%). Users are also still just as heavily influenced by retailers on social media, with nearly half of consumers having purchased products or services they discovered on those platforms.
While social media’s influence remains strong, escalating concerns about security and privacy when shopping through social media have halted the growth of social commerce and social buy button adoption.
While social media’s influence remains strong, escalating concerns about security and privacy when shopping through social media, have halted the growth of social commerce and social buy button adoption. Legitimacy is a concern as well, as those who have yet to try it wonder if social media is a credible channel for transactions.
But the future still looks bright as consumers become more familiar with emerging technology and ways of shopping, like chatbots and conversational commerce. More than one-third of consumers have interacted with a messaging chatbot, with 72% citing the experience as helpful or informative. While familiarity with conversational commerce, or shopping through chatbots on messaging apps, remains low, consumers are becoming more receptive.
How can retailers use social media as an eCommerce tool and implement best practices for social commerce?
For more insights, download the latest SUMO Heavy whitepaper ‘Social Commerce Revisited 2018’, an in-depth survey and refresh on how social media shopping has evolved over the last two years.