Social media is fast becoming a powerful sales channel for retailers, but a significant trust gap is holding back its full potential.
According to SOTI’s latest retail report, “Retail Tech Assessment: Opportunities For Enhanced Consumer Experiences,” 19% of Australian consumers have made multiple purchases via platforms such as Facebook, Instagram and TikTok in the past six months. However, 93% still have concerns about shopping this way.
Growth Is Real, But Confidence Isn’t
For many consumers, social commerce offers speed and convenience with 65% of surveyed Australians saying it makes it easier to discover and buy trending products. However, this ease of access is being undermined by concerns around security, transparency and delivery reliability.
Data protection, security and fraud risks remain the biggest barrier when shopping via social commerce, cited by 72% of Australian consumers.
Beyond this, fulfilment issues continue to erode confidence, with 40% concerned about orders not being delivered and 39% worried about long delivery times.
A lack of transparency is also impacting trust. More than a third (34%) of shoppers say they receive insufficient updates on order status, while over half (53%) are concerned that products may not match what was advertised online.
Closing the Gap Between Demand and Delivery
While consumers are drawn to social commerce for speed, convenience and promotional offers, the post-purchase experience often fails to meet expectations.
Today, 83% of Australian consumers have concerns around item fulfilment when they complete a purchase.
Nearly seven in ten (69%) of social commerce users report having experienced issues such as delayed delivery, inaccurate product descriptions or poor communication.
These experiences come at a cost. Forty-three per cent of shoppers say they return items, while 55% are discouraged from making future purchases through social channels altogether.
“Social commerce offers enormous potential for the retail sector, but trust is the decisive currency for sustainable success,” emphasises Shash Anand, SVP Product Strategy at SOTI.
“Consumers expect transparent processes, reliable delivery times and fully traceable order information at all times, even when shopping via social media.
“If these expectations are not met, retailers lose not only individual sales, but also their customers’ long-term loyalty.”
“For retailers, this gap is more than a customer experience issue – it directly impacts revenue, margins and brand loyalty.” said Anand
Fulfilment failures increase returns and service costs, while poor communication drives customers to competitors in a low-friction, highly competitive environment.
Technologies such as real-time inventory visibility, AI-driven logistics and enhanced order tracking can improve fulfilment accuracy and transparency.
Strengthening these capabilities helps reduce friction, build trust and turn one-time buyers into repeat customers.
“Social commerce is raising the bar for what customers expect after they click ‘buy’. It’s no longer enough to create demand on social platforms, retailers also need the operational backbone to fulfil that demand quickly and transparently,” added Michael Dyson, VP of Sales, APAC at SOTI.
“That means having clear visibility of inventory, reliable last-mile delivery and consistent communication at every stage of the journey.” said Dyson
“With solutions like SOTI MobiControl XS, organisations can better manage and support their mobile workforce in real time, helping ensure orders are fulfilled accurately and customers stay informed.”
“Those that can connect their people, systems and data will be best placed to build trust and turn social engagement into repeat purchases.” he said.
