Social Platforms Engage Consumers, Yet Conversions Lag Behind

Key Takeaways from the Report:

• Shoppers globally are eager to explore a wide range of products and services across various channels, yet they primarily make purchases through channels they trust, as highlighted by a recent ESW report from June. ESW surveyed 23,000 consumers across 18 different markets.
• For instance, while 62% of consumers indicate that social media influences their shopping decisions, only 6% prefer to finalize their purchases through these platforms.
• Approximately one-third of consumers favor buying directly from brand or retailer websites. In the U.S., this preference is even stronger, with 37% choosing brand websites, and 52% of baby boomers showing similar inclinations.

Understanding Consumer Behavior in Social Media Commerce:

Social media has emerged as a primary avenue for consumers to discover new products. the lack of trust in social commerce checkout experiences complicates the customer journey.

About half of consumers report finding new products through social media channels. This trend is particularly pronounced among Generation Z, where three-quarters rely on social media for product discovery. In contrast, only 38% of global shoppers report using search engines for new product discovery, and 36% turn to physical stores.

Despite this discovery trend, trust issues hinder actual purchases. In the U.S., only about 25% of consumers express trust in social commerce checkout processes.

“American consumers are open to innovative methods for discovering products and extracting value,” stated ESW CEO Eric Eichmann in an official release. “While nearly half are at ease using AI for price comparisons and 45% find products through social media, their confidence significantly diminishes as they approach the checkout and payment stages.”

ESW emphasizes the importance of designing for fragmented commerce journeys. A typical scenario may involve a consumer discovering a product on Instagram, confirming its quality or price via a third-party review site or AI tool, and ultimately making a purchase on a trusted platform.

During this transition, any friction can lead to consumer abandonment. Businesses can enhance consumer confidence by offering transparent pricing, familiar payment options, and a secure purchasing environment, as advised by ESW.