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Businesses have to keep up with the changing content consumption habits. Businesses are finding a new channel for sale on social networks: social commerce. What about the user side?
Rapyd, a global Fintech-as-a-Service (FaaS) and Israeli unicorn conducted a study in Latin America to find out how open we are to host this channel.
Below we share an analysis of the study that gives us a regional thermometer of the penetration of social networks as a sales channel, from which we can see which countries show greater resistance, which are the most used payment methods to what type of Products are purchased through this means, among others.
The survey found that the majority of the Brazilians had already made purchases through social networks. Argentines were the most reluctant to participate in the new channel, with only 38% responding affirmatively.
Facebook was the favorite social network for those who had already bought through social commerce, with a positive response of 85% in Mexico, 75% in Argentina, and 70% in Brazil. They are followed in Mexico by bothWhatsApp andInstagram, and in Brazil and Argentina by both.
The countries agree that clothing and clothing is the most popular category of purchases through social networks. In Argentina, beauty items and home decoration items were mentioned in third place, while in Mexico and Brazil they were in second and third place, respectively.
More important decisions such as "Health Services" are what they seem least willing to acquire through a channel that seems to still be in an exploration and testing phase in these countries, such as social commerce. In Mexico, 45% of the responses were negative, while in Argentina, 45% and in Brazil, 40% of the responses were negative.
Bank transfer is the most used payment method for purchases made through social networks in both Mexico and Brazil, while credit card is the most used payment method in Brazil. In Argentina, the podium is shared by bank transfer and cash at convenience stores. In Brazil, Mexico, Mexico, and Brazil, the second place is occupied by PayPal, followed by Mexico, and Brazil, with the third place occupied by the debit card.
The biggest barrier to social commerce is the fact that the merchant is a scam, and for Brazilians it's not safe. Data security is second for Argentina, Mexico and Mexico.
Half of the Mexican respondents, half of the Brazilians, half of the Colombians and 45% of the Argentines highlighted their concern for the security of payments. The security of a successful social commerce is highlighted by the diversity of payment options.
The Influence of the "Influencer" is that 83% of Brazilians admitted that their willingness to buy could increase if they saw positive comments on their social networks from someone they follow. The trend is accompanied by Mexicans and Colombians. Only 45% of Argentines agreed with the statement.
One of the biggest concerns of Mexican consumers when talking about social commerce is the security of transactions, both that the merchants are not crooks and that their payments are safe. It is essential for this channel to expand and flow more freely in the region because we understand the importance of providing collection tools that verify merchants and customers and that apply strategies that help combat fraud. Having a partner that will protect you in this area will surely increase trust among merchants and buyers.
