Social commerce is transforming the retail landscape as consumers increasingly seek streamlined shopping experiences. Yet, growing concerns about security, fulfilment disruptions and product discrepancies remain significant barriers. However, the retail industry can use existing technologies and platforms to build brand trust and loyalty.

According to SOTI’s new retail report, The Rise of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers, consumers continue to seek out new purchasing channels with a growing preference for a hybrid shopping model. Three key themes appeared in this year's retail report: social commerce is becoming a critical channel for retail growth, driven by consumer demand for improved and more personalised shopping experiences. However, there is a lack of robust security in the sector and all retail channels, which remains a critical issue for buying online and with in-store devices.

The Rising Importance of Social Commerce

The surge in mobile-first and application investment is changing how consumers shop, blending personalisation to meet consumers’ evolving preferences. Nearly two thirds (63%) of Australian consumers say that phones are the most convenient way to make an online purchase. Nearly half (44%) of consumers say social media offers a quick and effortless way to keep up with trends, making  social commerce an essential channel for retail growth. Personalised content and promotions keep consumers engaged and on trend.

However, SOTI’s research suggests that the rise of social commerce has brought new challenges to retailers that they need to address. Of those making purchases through social media in the past six months:

• 35% of consumers report delayed delivery.
• 28% of consumers received little or no communication about . the delivery status for their item.
• 20% of consumers never received updates on product availability after expressing interest.

Fulfilment delays, product discrepancies and poor post-purchase communication can undermine the shopping experience.

"Consumers are increasingly drawn to personalised shopping experiences, with 59% preferring retailers that can tailor their offerings both online and in-store,” explained By Michael Dyson, VP of Sales & Marketing, APAC. “However, this enthusiasm for personalisation comes with a critical consideration—54% would not shop with a store if they felt AI was being used to monitor their purchases. This highlights the fine line retailers must navigate between delivering tailored experiences and respecting customer privacy."

To capitalise on the full potential of social commerce, retailers must not only balance personalisation with privacy but also prioritise seamless mobile-first platforms, secure payment systems and robust supply chain models to meet evolving consumer expectations.

Protecting Consumer Data & Instilling Trust: Navigating Security Concerns

When making purchasing decisions, consumers need confidence in the retail provider and the payment system protecting their personal data. In fact, 83% of consumers have concerns about entering personal details online or into an in-store device, with 66% having a fear of smaller retailers being unable to keep personal and payment data secure.

“Data breaches and vulnerabilities have eroded consumer trust, heightening the fears of data theft and fraud,” said Shash Anand, SVP of Product Strategy at SOTI. “As a result, 83% of consumers are hesitant to enter their personal details into online or in-store devices. Security concerns must be addressed in-store and online, with retailers needing to implement robust measures to protect consumer data in this growing wave of social commerce and  instill confidence in store and online to keep their customer loyalty.”

As social commerce channels grow, security is still a concern, with 28% of consumers expressing unease about following purchase links from social media. Now is the time for retailers to use secure mobile technology to manage consumer data, to simplify and enhance consumer experiences with retail brands. 

Download SOTI’s latest report, The Rise of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers, here.