Social e-commerce market will reach 1.2 trillion US dollars, but the consumer trust crisis still needs to be resolved

It is learned that recently, according to the latest research report released by SOTI, "The Rise of Social E-Commerce: Converting Technology-Driven Browsing into Influenced Buyers", it is expected that the growth rate of social e-commerce will be three times that of traditional e-commerce, and the market size will reach 1.2 trillion US dollars in 2025.

With the rise of platforms such as TikTok Shop and Instagram Shop, and the continuous launch of new platforms, social commerce has indeed achieved significant growth and provided new opportunities for brands and retailers to connect with consumers. However, this shopping method has also caused some consumers to question its convenience.

The report points out that consumers face a crisis of trust in social e-commerce. Data shows that 70% of American consumers are concerned about data security when shopping through social media, and 61% of consumers say they have given up online shopping due to concerns about security issues. For small sellers, 63% of consumers expressed concerns that they would not be able to keep their personal and payment data secure. Overall, 76% of consumers are concerned about the security of their personal information when shopping online, and another 25% expressed concerns about the security of social media purchase links.

The study also found that delayed delivery and poor communication are among the factors hindering the growth of social commerce. In the past six months, 34% of U.S. consumers reported experiencing delivery delays in social e-commerce orders, 29% said the items they received were significantly different from what they ordered, and 22% said they did not receive updates about the product after asking the seller for product details.

In contrast, personalized experiences can effectively promote consumer engagement. The survey shows that 64% of American consumers prefer sellers that provide a personalized shopping experience, and 68% are interested in loyalty programs with customized offers. 57% of consumers said they would prefer shopping with personalized experiences using new technologies. Nearly 50% of consumers believe that AI should provide tailored offers, and 48% believe that AI can better recommend products, but issues such as data leaks and security breaches still make them worried, leading to distrust.

As social commerce continues to grow, to unleash its full potential, sellers need to focus on using secure platforms, payment options and courier service providers, commit to maintaining consumer trust, put the protection of consumer privacy data first, and use advanced technology to ensure the security of information, thereby restoring consumer trust and laying the foundation for sellers' success.

Author✎ Summer/
Disclaimer: This article is copyrighted and may not be reproduced without permission. If you need authorization, please contact: happy