Report: Asia leads global rise in social commerce

Social commerce continues to rise in popularity, with Asia firmly leading the way, a new report from DHL eCommerce has revealed.

According to the survey which was carried out on 12,000 consumers in 24 countries, 57% of online shoppers use their smartphone as their primary device for purchasing. App-based platforms such as Shein and Temu have gained immense popularity globally due to their vast product offerings at affordable prices while 65% of global shoppers stress the significance of knowing the delivery provider before purchasing.

“With our Online Shopper Trends Report, we cover all major markets within Europe, the Americas, the Middle East and Africa as well as Asia Pacific and China. Therefore, we gain crucial and valuable insights into the behavior of online buyers worldwide. By understanding the emerging trends in the e- ommerce landscape, such as the rising popularity of social media shopping or the impact of delivery options on purchase decisions, we can adapt our services to meet the evolving needs of our customers,” Pablo Ciano, CEO of DHL eCommerce, said.

 

The power of social media and smartphones in e-commerce

According to the report, social commerce is becoming the next big thing in e-commerce. It allows users to buy products directly via networks like Instagram and Facebook. Sales through social media platforms are expected to reach 8.5 trillion US dollars by 2030 compared to estimated 700 billion US dollars in 2024. This would represent an approximately twelve-fold increase within a span of six years. Asia is at the forefront of this trend, with countries like China seeing 53% and Thailand 59% of shoppers purchasing via social media. With this also comes a shift in preferred devices for buying

Most online shoppers prefer to browse and purchase products with their smartphones. 57 % use their smartphone as the dominant shop window and purchasing device. Of course, this also has implications for the presentation of products and the structure of online stores.

The global phenomenon of app-based marketplaces has witnessed a remarkable surge in popularity, with Shein and Temu leading the way. These platforms share the everyday appeal of offering online shoppers an enormous range of products seamlessly integrated into user-friendly mobile apps.

Shein is immensely popular with shoppers in the UAE, Morocco, and Brazil, while Temu has gained significant traction among shoppers in the USA and the Netherlands. However, in Europe, Zalando remains the preferred online shopping destination. Except for the Netherlands, emerging Asian marketplaces have not yet established a leading position.

Delivery services are a critical factor in online shopping success

 The report notes that today’s online shoppers are also highly conscious of costs, particularly when seeking affordable, flexible, and convenient delivery options. High delivery costs are a significant barrier, with 41% of shoppers abandoning their purchases due to expensive delivery fees. Even more, 65% of global shoppers emphasize the importance of knowing the delivery provider before purchasing. This underscores the significance of transparency and trust in the delivery process, as customers want to know the logistics partner responsible for handling their orders, DHL said.

The first chapter of the Online Shopper Trends Report 2024 can be found here