Social commerce is booming and has become a shopping channel favored by consumers

Although lockdown restrictions caused by the pandemic have eased in the region, social commerce in Southeast Asia is still on the rise.

According to a research report by technology solutions provider IKala, in the first half of 2021, orders and website transaction volume (GMV) in Southeast Asia jumped 102% and 91% respectively compared with the same period last year .

IKala CEO Sega Cheng said that Southeast Asia has a huge number of social media users, and stimulated by the epidemic , their use of social platforms for shopping is astonishing .

Today, even as physical stores reopen, social commerce has not been affected much. Its simplicity and convenience, as well as its wide range of delivery services, have earned it a place in the region .

While e-commerce ( 91%) remains the preferred channel for shoppers in Southeast Asia, social commerce (78%) is a close second, even surpassing traditional retail (35%).

According to the survey, as many as 42% of shoppers said they make 1 to 2 purchases via social media per month , and 35% use social media to shop more than 3 times per month.

Meanwhile, revenue per order grew 88% , meaning consumers were not only shopping more, but also spending more on each order .

In addition, payment preferences vary by region . Consumers in Singapore and Malaysia prefer credit cards and digital wallets, while consumers in Thailand and the Philippines prefer cash on delivery.

Despite this, there is still room for improvement in shopping on social platforms . Consumers who participated in the survey said that expensive shipping costs ( 51%) , no return and exchange policy ( 41%) and lack of customer service ( 34%) all need to be improved .

In addition, social commerce shopping fraud has increased , with as many as 70% of respondents saying they have encountered product fraud during social shopping.

Cheng also mentioned that the beauty of social commerce is that almost anyone with a smartphone and internet access can sell on social media , but the activity is also fraught with challenges.

Merchants need to meet consumer expectations and enhance the customer shopping experience . As the environment matures, sellers who can operate with integrity and adopt effective solutions to eliminate pain points will be able to maintain long-term engagement and trust in the social commerce field .

Social e-commerce

Etsy