A new study conducted by PayPal Canada finds that Canadians aren't afraid to shop on social media, with nearly half saying they already do so and almost 40% saying they plan to this holiday season.
The inaugural Social Commerce Trend Study found that Canadian social media users spend an average of $924 per year shopping on social media platforms.
According to eMarketer's 2019 Social Commerce Report, cited by PayPal Canada, the percentage of retailers in North America using social media as a source of e-commerce nearly doubled from 17% in 2017 to 33% in 2018. Canadians say they like the "fast and straightforward" experience social commerce provides.
An increasing number of retailers are offering social commerce purchase options while Canadian social media users spend 6.4 hours on social media platforms every day!
"A few years back, people could browse on social media platforms, but that's as far as you could go. Today, ‘Buy Now' buttons are a reality and allow people to shop when they are scrolling through social media platforms, making it a popular commerce trend," says Paul Parisi, President of PayPal Canada.
The study found that four in five (78%) Canadian social media shoppers like that social media shows them products they are interested in but would not have discovered otherwise. Shoppers are discovering these items through features and functionalities in apps like Instagram and Snapchat as well as through new social peer- to-peer marketplaces like Depop and Poshmark. And PayPal predicts that the popularity of social commerce in Canada will continue to rise and evolve.
The popularity of social commerce is largely being driven by Canadian consumers' expectation of convenience and a shopping experience that is hyper-relevant, targeted and interactive, says PayPal. However, there isn't a one-size-fits-all solution when it comes to who is buying, what they are buying, and where they are buying on social commerce. The study found that among Canadian social media users, men are shopping more (33%) than women (26%) on a monthly basis. The things they are buying most are fashion items such as clothing, shoes, and accessories (54%), electronics (26%), toys and games (21%), home décor (20%), and event tickets (19%). More than half of social media shoppers admitted to impulse purchases on social media platforms (52%).
Goods and services are now brought directly to the consumer on the platforms they frequent. Facebook was identified as the most frequently shopped social media platform among Canadians (29%) followed closely by Snapchat (26%) and Instagram (25%).
The study also revealed that when it comes to a preferred location or timing for shopping on social media, Canadians are all over the map. The study found that 42% have shopped on social media while commuting, and 32% have shopped on social media during a conference call or meeting at work.
On social media, consumers often follow content from influencers. The survey found that 41% of Canadian social media users say they are inspired by product and service recommendations from social media influencers and content creators. And 62% of Canadian social media shoppers say they are more inspired by the holiday gift recommendations they see on social media versus those they see in-store.
Half of single Canadian social media users report that they spend more time shopping on social media than they do on dating apps, and nearly half (48%) of Canadian male Millennial social media users (48%) have shared photos of engagement rings with their partners on social media compared to (33%) of female Millennial social media users.
More than half of Canadian social media shoppers (54%) find it hard to resist buying something they love that they see on social media.
The online survey was conducted in both English and French through the Logit Group's opt-in consumer panel. The study was in field between November 7-18, 2019, and surveyed n=1,825 Canadian social media users starting from the ages of 18 and older. To quality, respondents had to use one or more social media platforms once a month or more.