Users have significantly more trust in shopping platforms on social media compared to other channels. According to a study by Chubb, 85% of online shoppers trust sellers on social media networks, while the remaining percentage shows trust in traditional e-commerce platforms.
This statistic is intriguing, especially
considering the problems users encounter when shopping on social media marketplaces:
● Financial Fraud Issues: 75%
● Delivery Problems: 61%
● Payment Failures Due to Technical Issues: 55%
● Received Damaged Goods: 42%
Additionally, user comfort with social media purchases tends to decrease with age. The Gen-Z cohort shows the highest engagement, with 46% of respondents shopping through social networks, compared to 30% of Millennials, 22% of Gen-X, and 0% of Baby Boomers.
Despite the high level of trust consumers place in e-commerce platforms on social media, sellers have a different perspective. For instance, while 81% of surveyed sellers use social media for sales and marketing, their trust in these platforms for inventory management is only 35%. Trust levels are similarly low in other areas: user navigation (30%), product returns or exchanges (31%), order fulfillment and delivery (33%), and payment processing (35%).
The authors of the study point out that lack of trust is a significant issue in the e-commerce sector, hindering both consumer and seller loyalty. Regardless of the platform—be it social media or traditional online stores—the shopping experience must be straightforward, quick, and reliable. Issues like delivery problems, damaged goods, and online fraud can quickly erode trust, which is crucial in the digital marketplace era.