Social media is an important channel for brands and developers to reach and acquire customers and users. Yet social commerce revenue tends to be underreported by 245%. That’s according to the latest State of Social Commerce report from mCommerce shopping experts SimplicityDX.
Why social commerce reporting falls through the cracks
Social media has been touted as one of the top advertising trends for 2023. That’s because 64% of consumers learn about new products and services on apps such as Instagram and TikTok. Another 58% consider social influencers best for product discovery and recommendations. However, just 16% think it’s a great place for shopping.
Shoppers use social media apps to…
Source: SimplicityDX
Instead, consumers tend to head directly to a brand’s app or website to make a purchase rather than clicking through and purchasing on social media. 71% of shoppers who used social media for a recent purchase went straight to the brand app or website rather than clicking through.
Shoppers discover products on social apps and…
Source: SimplicityDX
The result is that brand site revenues from social are underreported by approximately 2.45x or 245%.
What’s the issue with social commerce?
A whopping 77% of consumers prefer to shop on a brand website or app. Livestream fares a little better with 36% of consumers saying they would buy from an influencer on a livestream. However, that leaves almost two-thirds who would prefer not to shop from influencers. So what exactly is holding them back from checking out their products on social apps?
Livestream purchases grew in Q4
Source: SimplicityDX
The vast majority (86%) complain of bad experiences on social sites and 77% aren’t sure how they would return a product. Trust in dealing with personal data is another major factor that keeps shoppers from using social checkouts and inventory issues can leave shoppers disappointed.
Issues with social commerce by quarter
Source: SimplicityDX
How do you succeed on social commerce?
The report highlights that brands should focus on driving discovery on socials and redirecting shoppers to their mCommerce stores or apps. Building and maintaining trust should be at the forefront of the customer journey given that 67% of respondents don’t trust social platforms with their personal data.
Consumers are worried about privacy on social apps
Source: SimplicityDX
To avoid disappointment, businesses must ensure their product inventories are synced between their social and online platforms. It’s best to upload the entire product catalogue to socials to enable easy checkouts on social apps.
Brands can also benefit from asking shoppers to subscribe and then retargeting them later.
Key takeaways
- Social commerce revenue is underreported by 245%
- 64% of consumers learn about new products and services on socials but 71% of shoppers go to the brand website to make purchase
- 86% complain of bad experiences on social sites and 77% aren’t sure how they would return a product
The post Social app and influencer commerce revenues are underreported by 245% appeared first on Business of Apps.
source https://www.businessofapps.com/news/social-app-and-influencer-commerce-revenues-are-underreported-by-245/
