Insights on why social app commerce revenue is underreported by 2.45 times

Social media platforms have played an important role in connecting brands and developers with their customers. However, commerce revenue on such platforms is not fully reported. As per SimplicityDX’s recent State of Social Commerce report, the revenue is underreported by 245 percent.

Social platforms are considered to host the highest ad trends for the ongoing year. Advertisements on social media apps such as Meta’s Instagram or ByteDance’s TikTok lead to 64 percent of the audience learning about new offers and items. Whereas 58 percent believe that influencers help them discover new items, only 16 percent of them use the platform for online shopping.

Buyers prefer using a brand’s website or application to place their order instead of using social media apps. Almost 71 percent of those who recently bought something via online shopping used the main website or application. Similarly, 77 percent of buyers prefer the same method when it comes to e-commerce. Almost 36 percent of the audience would buy products that would be displayed by their influencers during their live streaming.

Two of the main reasons behind such figures are that 86 percent of the customers didn’t have a good experience while using social platforms to order things. The other reason is the confusion over how the product will be returned. Furthermore, a large number of users don’t want their data or banking details to be compromised while using social platforms to place an order.

The survey shows that 67 percent of the respondents did not trust social sites with their personal information, whereas 49 percent don’t trust brands with the same information. Moreover, 62 percent of the survey participants didn’t trust social platforms with credit card information, while 44 percent had trust issues with the brand.

To break the trend, building trust is a key task for sellers. In addition to this, the brands and businesses need to keep their stock available on both social platforms as well as the main website. This will help customers with easy checkout, even on social media sites.

Read next: 66% of Consumers Worry That Generative AI Could Cause Privacy Issues on Social Media
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