PayPal: UK social commerce to double in next six months

UK social commerce is set to double in the next six months, according to one of the findings of PayPal’s fourth annual Commerce Index.

Social e-commerce opportunities

Almost a quarter of UK businesses (24%) allow customers to transact via social media channels. This figure is set to double over the next six months as mobile shopping expands into social channels. There seems to be value in the stronger customer connections businesses can build on social channels. Those companies that already sell on social say 38% of sales come from social media. That’s a big number, but compare that to the global average of 45%. 8.4 million UK consumers currently shop via social media, with Facebook, Instagram and Snapchat being the most popular channels. Of those who already buy via social media, a fifth do so weekly, with the average social media spend by individuals being £71 per month.

Who buys what on social media?

Nearly a quarter of Millennials (24%) and just over a fifth of Gen Z (22%) have purchased or paid for something on social media in the past six months. This compares to a sixth of Gen X (17%) and a ninth of Baby Boomers (11%). Perhaps unsurprisingly, the most popular categories for social commerce are apparel and accessories (15%) and health and beauty (10%). Other popular categories include home and garden (8%), books and magazines (7%), food and beverages (6%) and toys and games (6%).

Safety is always the most important

‘Ensuring the privacy of customer data’ was ranked as a top priority for businesses (34%). ‘Ensuring the security of IT/technology systems’ was a close second (33%). For shoppers, nearly three-quarters (73%) use mobile devices for shopping and payments due to convenience. Nearly half (48%) use their mobile phones to shop and pay at least weekly. However, security or trust issues remain a potential barrier, with nearly two-thirds of shoppers (64%) citing this. This is the highest level of the 11 markets surveyed. One-quarter of UK shoppers (26%) have given up on mobile transactions due to security concerns. As social commerce grows in popularity, there will be closer scrutiny of the data collected during social shopping and its potential impact. So it’s no surprise that this is reflected in the research:

39% of respondents said: "I don't trust the shopping process on social media platforms."

38% of respondents said: "I don't want my financial information linked to my social media."

37% of respondents said: "I am concerned about the security of my personal information on social media."

Don't miss cross-border opportunities

While one-third of UK businesses have made international sales in the past six months, only 10% actively target international buyers. But global online shoppers are increasingly interested in cross-border shopping. Research shows that more than half of consumers (55%) shop cross-border on a regular basis. The top reasons for shopping on international websites are:

Access to items not available in the domestic market (50%).

Better prices (46%).

Discover new and interesting products (28%).

17% of merchants said that "selling to international customers helps us grow our business."

199IT.com Originally compiled from: PayPal. Please do not reprint without authorization