Australian businesses are turning to social media as a mainstream commercial platform, according to a recent economic study.
The PayPal 2026 eCommerce Index has revealed that 67 per cent of Australian businesses now sell through social media, reflecting a changing digital marketplace.
PayPal Head of Business Marketing, Josh Greech said in a media release that selling through social media platforms has moved from experimentation to expectation for businesses.
“With social media now driving more than one in 10 online sales, it has evolved beyond a marketing tool into an integral part of the commerce journey,” Mr Greech said.
“When consumers are buying from newer or lesser-known brands through social, having a fast, secure and familiar payment experience can be the difference between a completed purchase and a lost sale.
“Businesses that combine strong social engagement with seamless, trusted payment experiences will be best positioned to convert attention into revenue.”
Alongside businesses, consumers have adopted shopping through social media with 28 per cent of Australians having made a purchase or payment through social media in the past six months, highlighting a fundamental shift in consumer behaviour.
University of Wollongong Associate Professor in Marketing, Michael Mehmet said this trend reflects where consumer attention lies.
“People don’t want to leave their phones and businesses know that so that’s where they put their content,” Ass Prof Mehmet said.
“The fact you don’t have to leave your phone reduces your chance of pulling out the sale. The more time we have to think about something the less likely we are to make a purchase,”
The identified trends are not solely based on younger social shoppers, but are representative across generations nationally.
The global social media market, valued at $US 218.03 billion in 2023, is expected to surge to $US 815.78 billion by 2033.
Dr Mehmet said the success in social media selling can be accredited to the built in algorithms.
“The better you understand the customer, the better your content’s going to be, the better your channels are going to be, and then the algorithm can take over the rest,” he said.
“These platforms have developed algorithms that are so precise… they can be used to manipulate us into being whatever mindset we need to be [in] and they understand based on what we look at, exactly what we’re doing, and how we’re feeling when we’re doing it.
“They are able to target us with very specific messages that they know will work in order to elicit whatever response they want.”
Australian businesses continue to lead new marketing approaches adapting technologically to reflect changing consumer behaviours.
Additional reporting: Harry Evans, Amelia Brennan
Feature image: Medium
