According to a survey conducted by Essence, 30% of Indian shoppers prefer using digital wallets
41% of respondents worldwide made purchases or intend to make purchases involving social platforms, according to a social commerce report by Essence. As per the report, social commerce is forecast to account for 13% of total ecommerce sales in China this year with almost 80% of consumers in China purchasing items on social media. Singapore, India and Indonesia followed China with 50%, 49% and 48%, respectively.
While social media platforms have always provided an environment for buyers and sellers to interact, the survey demonstrates a shift towards organised commerce on platforms, Essence survey stated. Furthermore, social commerce enables discovery, browsing and purchasing to take place on one platform without the need to interact with any external websites or applications. Ultimately, it creates a seamless experience with fewer clicks and higher potential revenue and conversion rates.
Customers tend to be exposed to new and innovative products as they browse more on social media or encounter algorithmically mediated recommendations from friends and family on social platforms, Aniket Basu, senior director, technology and ecommerce, Essence, said. “We expect that the future of online shopping – and not just social commerce – will be discovery-driven. Ecommerce is maturing as a field, with social media giving brands and retailers new ways to reach audiences and new growth opportunities. In this environment, social commerce serves as a key future-proofing method for the next five years and beyond,” he added.
In most countries, the average transaction value on social commerce is higher than the average transaction value on ecommerce transactions. Respondents in Japan recorded the highest average transaction value, between $96.74 – $483.67 for social commerce, followed by the United States, which had an average transaction value between $101 – $200. China, on the other hand, had a lower average transaction value between $31.48 – $78.30. As per the report, the higher value transactions look to be driven primarily by men (35%) and by millennials in the 25 – 44 age segment (72%). Both the male and the 25 to 44 age segments are skewed towards the purchase of higher-value categories such as hardware, home cleaning, luxury and furniture.
In India, beauty emerged as the most favoured category to shop from on social platforms, accounting for 39% share. Following beauty was food delivery/takeaway with 30% share and grocery with 29% share pf the total pie. According to the report, 52% of the respondents are spending between Rs 1,000 – 5,000 on average on a single transaction on social media with nearly 88% of the respondents (highest after China) likely to buy via social media. Furthermore, India has shown a growing preference for newer payment methods such as digital wallets (30%) and mobile payments (34%).