Companies that do not sell directly to shoppers through social media are “missing a significant opportunity”, an industry report suggests.
Brands enabling purchases on social media, such as TikTok Shop or Instagram Shopping, are adopting a winning strategy, with 76 per cent of UK consumers planning to buy in that way this year, significantly up on last year.
The survey by the research consultancy Retail Economics of 8,000 people found that 21 per cent of shoppers globally made a purchase directly through a social media platform in 2024. In Britain that figure was higher at over 25 per cent.
However, the study found that only 46 per cent of online retailers are enabling direct purchases on social media. This is despite 66 per cent of consumers believing that having an effective social presence is a key factor in their buying decisions.
Platforms such as TikTok Shop let people buy products while watching videos from brands and influencers, without having to leave the app. Some top brands such as L’Oréal cosmetics, Karen Millen womenswear and Sweaty Betty athleisure clothing started using TikTok Shop in 2024.
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Retail Economics polled 400 ecommerce businesses and found that 84 per cent grew in 2024, with the average growth just over 5 per cent. Its survey of consumers suggested that shoppers are returning to the high street, with 54 per cent saying they will increase their visits to physical stores this year.
Albert Ko, chief executive of the US retail software firm Auctane, which commissioned the surveys, said: “It’s clear that retailers must adapt their strategies to stay competitive. In an environment where consumer expectations are higher than ever, the key to growth lies in innovation, agility and a customer-centric approach.”
The consumer survey suggested that shoppers remain cost-conscious, with almost 60 per cent concerned about rising delivery and return costs, and just under half worried about how long it will take and when goods will be delivered.
