Opinions expressed by Entrepreneur contributors are their own.
Content consumption is constantly evolving and businesses must keep up. Social networks are the place where brands find the user in a more relaxed and receptive way and there businesses find a new channel for sale: social commerce. But what about the user side?
A study carried out in Mexico, Colombia, Argentina and Brazil by Rapyd , global Fintech-as-a-Service (FaaS) and Israeli unicorn, analyzes how open we are in Latin America to host this channel.
Below we share an analysis of this study that gives us a regional thermometer of the incorporation and penetration of social networks as a sales channel, from which / which countries show greater resistance, which are the most used payment methods to what type of Products are purchased through this means, among others:
Argentina, more cautious: 63% of the Brazilians surveyed said they had already made purchases through social networks (IG / FB), not far behind are Mexicans with 57%, and Colombians with 54%. Argentines were the most reluctant to this new channel with only 38% of those surveyed responding affirmatively.
Facebook, the favorite to buy: of those who said they had already bought through social commerce, Facebook was the favorite social network with 88% positive responses in Mexico, 73% in Argentina, 72% in Colombia and 66% in Brazil. In Colombia and Mexico they are followed by WhatsApp with 53% and 39% respectively, and Instagram for Brazil (59%) and Argentina (43%).
What to buy: the 4 countries agree that the most popular category of purchases through social networks is clothing and clothing (Brazil 71%, Argentina 62%, Colombia 55% and Mexico 52%). For Colombia (44%), Mexico (37%) and Brazil (45%), cosmetic and beauty items were mentioned in second place, while in Argentina they were home decoration items with 34% and beauty items in a third place (30%).
What would not be bought: 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. This category obtained 51% negative responses in Mexico, 47% in Argentina, 41% in Colombia and 40% in Brazil.
Payment methods: for purchases through social networks, both in Colombia (61%) and in Mexico (54%), the most used payment method is bank transfer, while in Brazil the credit card predominates with 67% . In Argentina the podium is shared by bank transfer and cash payment at convenience stores; both options with 41%. In second place, in Brazil (46%), Mexico (51%) and Colombia (41%) is PayPal, while for Argentines (35%) it is the debit card.
Barriers to social commerce: the biggest concern about buying through this channel for Mexico (67%), Colombia (66%) and Argentina (59%) is that the merchant is a scammer, while for Brazilians (62%) is that your data is not safe. For Argentina (58%), Mexico and Colombia (both 53%), data security ranks second.
Secure payment: 52% of the Mexican respondents, 49% of the Brazilians, 46% of the Colombians and 45% of the Argentines highlighted their concern for the security of payments. This highlights not only the importance of the diversity of payment options but also security for a successful social commerce.
Influence of the “Influencer”: 83% of Brazilians admitted that their willingness to buy could increase if they see positive comments on their social networks from someone they follow. This trend is accompanied by Mexicans and Colombians with 81% and 78% respectively. However, only 55% of Argentines agreed with this 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 scammers and that their payments are safe. At Rapyd we understand the importance of providing collection tools that verify merchants and customers and that apply strategies that help combat fraud, it is essential for this channel to expand and flow more freely in the region. Having a partner to shield you in this regard will undoubtedly generate greater trust among merchants and buyers.