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Shopping on social media appears to be the next trend in e-commerce. Brands love the idea because they can reach customers in the social channels they use everyday — while closing the gap between discovery and purchase. Shoppers love it because they use Instagram, Facebook and Pinterest to discover stuff they want to buy, so why not purchase items there as well?
But a new Business Insider article says that millennials (and their growing purchasing power) still aren’t clicking buy buttons very often. Also, the article cites Custora research finding that just 1% of all 2015 e-commerce orders resulted from a direct social media referral.
The article, however, offered plenty of evidence that the tide is turning. It cited a GlobalWebIndex study which found that “40% of global consumers ages 16 to 24 use social media to research products. And 30% of the general population use these platforms for product research before they buy.”
With so many young people relying on social channels for discovery, it’s likely that more and more of them will discover ways of purchasing through social as well. It’s just a matter of time.
Instagram is likely to break through first: “New buy buttons on paid posts, as well as increased targeting capabilities, could make the app a more important direct-response driver,” said BI.
Here are a few more takeaways from BI:
- “Social media increased its share of e-commerce referrals nearly 200% between the first quarters of 2014 and 2015.”
- “Social media users are 35% less likely to share a brand’s or retailer’s social post on mobile than they are on desktop computers.”
- Facebook’s “changing demographics could make older consumers a strong target for retailers leveraging the platform.”