Social media buys on the rise: Study

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Bengaluru: About 62% of Indian businesses accept payments via social media as compared to the global average of 55%. This has led to an increased adoption of social commerce in the country, a survey by digital payments company PayPal and market research firm Ipsos has found.

Social commerce adoption has been increasing in India. About 57% purchased via this channel in the past six months, with over half of them doing so weekly.

For the businesses surveyed, 55% of their sales volume was generated via social media, compared to the global average of 45%.

The survey — conducted across 11 countries with about 22,000 consumers and 4,000 business respondents — examined how people shop and sell online. In India, this comprised 2,000 consumers aged between 18 and 74 who owned or used a smartphone and over 300 business influencers or decision-makers who sell or accept payments online.

“India has been rapidly moving towards digitisation and millennials are embracing innovative ways of transacting using technology. Mobile penetration gives an impetus to the adoption of digital payments across the country,” PayPal India managing director Anupam Pahuja said.

WhatsApp was the dominant player in social commerce, with 41% respondents using it, followed by Instagram at 28%.

The report also said Indian consumers preferred a smartphone for making payments or purchases, which is mainly dominated by bill payments and fashion. Since the country has come a long way in the adoption of smartphones, and with the availability of cheap data from telecom companies, 70% of consumers preferred mobile-optimised experiences compared to the global average of 43%. Indian consumers spend about Rs 9,000 per month purchasing utilities, clothes and booking online tickets.

The survey also said more than half the Indian respondents, 54% online shoppers and 55% mobile shoppers, shop cross-border. “Better product quality and ability to discover new and interesting products are key drivers for cross-border shopping. However, shipping costs, delivery time, lack of clarity on duty/ taxes/ and return shipping costs are some of the barriers for those who do not shop internationally,” it said.

[“source=economictimes”]