Improve your dropshipping business by using the latest statistics. Learn about your target audience and how they behave on social media. This data is gold when putting together a marketing plan to encourage social commerce.
Online shopping on any social media platform such as Instagram, Facebook, or TikTok is referred to as social commerce. Products are purchased entirely within the social media channel, without being directed to an ecommerce website.
According to Accenture’s 2022 report, “Why Shopping’s Set for a Social Revolution,” the social commerce industry is forecast to increase three times faster than ecommerce. By 2025, social commerce should be worth USD 1.2 trillion.
Gen Z and millennials are suggested to be the reason for the huge growth. It is predicted that they will be responsible for 62% of spending on social commerce by 2025.
Insider Intelligence estimates that almost 50% of US adults purchased via social commerce in 2021.
Reasons for those that didn't buy on social media platforms include the preference for physical shops (44%), not trusting social media with payment details (43%), and being unsure if products were fake (33%).
A huge number of Facebook users take advantage of the social media platform to make a purchase. Influencer Marketing Hub reports that as many as one-quarter of a billion people.
Sales from social commerce in China reached USD 363 billion in 2021 comp ared to USD 36.1 in the US, says WeForum. The three biggest social commerce platforms in China are XiaoHongShu (Instagram, Pinterest, and Amazon in one), Pinduoduo (similar to Groupon and Amazon combined), and WeChat (the most popular Chinese messaging app).
The Global Web Index 2020 survey reported that 7 in 10 American internet users would likely buy products based on the recommendations of influencers they watch regularly.
Short videos are preferred by all ages (Gen Z, millennials, Gen X, and boomers), but Gen Z leads with 96% preferring videos less than 4 minutes. This data comes from the GlobalWebIndex 2022 survey by Hubspot. An impressive one-quarter of consumers enjoy branded content and watch one per month.
As per a report from Accenture in 2022, there are more social media shoppers from developing countries. The majority of Chinese social media users (80%) use these platforms to make purchases. Meanwhile, in the UK and US, social commerce is less mainstream.
It is interesting to note that shoppers in China, India, and Brazil are more concerned with "features that help them discover and evaluate potential purchases" but British and American consumers care more about pricing.