Social commerce gains ground in Canada amidst concerns

The latest report by SOTI indicates that social commerce is increasingly influencing the retail market in Canada, though security concerns continue to pose significant challenges.

The report, entitled "The Rise of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers," surveyed 1,000 Canadian consumers and identified a clear shift towards a hybrid shopping model. The findings suggest a growing consumer preference for purchasing via social media, a channel that 48% of respondents perceive as a quick and efficient means of staying current with trends. However, 74% of these consumers express concern over data security when engaging with these platforms.

Stephanie Lopinski, Vice President of Global Marketing at SOTI, commented on the development: "Online and social commerce are revolutionizing how Canadians shop. Our research highlights that 72% of consumers have opted for online purchases delivered to their homes in the past six months, while 63% expect tailored interactions throughout their journey. To keep pace with these expectations, retailers must prioritize personalization and smooth, efficient ordering and delivery processes to ensure a standout shopping experience."

Despite the rising popularity of mobile and online shopping, issues such as fulfillment delays, product differences, and unsatisfactory communication about order status continue to hinder the experience. From those surveyed, 37% who purchased via social media reported long delivery times, 25% received products that did not match their expectations, and 23% cited receiving minimal communication about their orders.

Shash Anand, Senior Vice President of Product Strategy at SOTI, emphasised the need for improved data security in social commerce: "Security concerns remain a critical barrier to unlocking the full potential of social commerce in Canada. Our research shows that 53% of Canadian consumers worry about who is responsible for protecting their data when a third-party payment solution is used. This heightened awareness stems from real issues like data breaches and payment fraud, which erode trust at every level. For retailers, addressing these challenges means implementing secure, mobile-first technology that builds confidence in every interaction. Retailers who act now to secure their platforms will set themselves apart as trusted partners in this fast-evolving marketplace."

The report also delves into consumer hesitations, with 83% of Canadian consumers expressing discomfort about using personal details online due to concerns over privacy and security. Furthermore, 66% feel that smaller retailers are less equipped to safeguard their data compared to larger establishments.

As social commerce continues to expand, ensuring secure payment systems and robust data protection measures is crucial for retailers aiming to meet consumer expectations and tap into the potential of these channels. This strategic shift is vital for building customer trust and enhancing the shopping experience.

The survey was conducted with 12,000 participants across ten countries, including Canada among nine other core markets, to provide insights into the dynamics of global consumer shopping behaviours. The findings underscore the increasing importance of social commerce in the retail landscape and the need for a focused approach to security and personalization by retailers.