Canadians worry over security, privacy when it comes to social commerce retail
Social commerce is transforming the retail landscape as Canadian consumers increasingly seek streamlined shopping experiences. Yet, growing concerns about security, fulfillment disruptions and product discrepancies remain significant barriers. The retail industry, however, can use existing technologies and platforms to build brand trust and loyalty.
According to SOTI’s new retail report, The Rise of Social Commerce: Turning Tech-Driven Browsers into Influenced Buyers, which surveyed 1,000 Canadian consumers, shoppers in Canada continue to seek out new purchasing channels with a growing preference for a hybrid shopping model.
Three key themes appeared in this report: social commerce is becoming a critical channel for retail growth, driven by consumer demand for improved and more personalized shopping experiences. However, security issues remain a critical issue for buying online and with in-store devices, emphasizing the need for a security-first approach across the sector and all retail channels.
The growth of social commerce
The surge in mobile-first and application investment is changing how Canadian consumers shop, blending personalization to meet consumers’ evolving preferences. In Canada, 59% of consumers say that phones are the most convenient way to make an online purchase. Almost half (48%) of consumers say social media offers a quick and effortless way to keep up with trends, making it an essential channel for retail growth. Personalized content and promotions keep consumers engaged and on trend.
However, the rise of social commerce has brought new challenges to Canadian retailers that they need to address. Of those making a purchase through social media in the past six months:
- 37% of consumers reported that it took a long time for their item to be delivered.
- 25% of consumers received products that looked significantly different from what was ordered.
- 23% of consumers never received little to no communication about where their item was.
Fulfillment delays, product discrepancies and poor post-purchase communication can undermine the shopping experience.
"Online and social commerce are revolutionizing how Canadians shop," said Stephanie Lopinski, VP of global marketing at SOTI. "Our research highlights that 72% of consumers have opted for online purchases delivered to their homes in the past six months, while 63% expect tailored interactions throughout their journey. To keep pace with these expectations, retailers must prioritize personalization and smooth, efficient ordering and delivery processes to ensure a standout shopping experience."
To meet these demands, retailers must focus on delivering seamless mobile-first platforms, implementing secure payment systems, and strengthening supply chain models, SOTI recommended. These elements are essential to aligning with consumer expectations and unlocking the full potential of social commerce.
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Protecting consumer data and building trust
When making purchasing decisions, consumers need confidence in the retail provider and the payment system protecting their personal data. In fact, 83% of Canadian consumers are concerned about entering personal details online or into an in-store device, with 66% fearing that smaller retailers cannot keep personal and payment data secure, the report found.
“Security concerns remain a critical barrier to unlocking the full potential of social commerce in Canada. Our research shows that 53% of Canadian consumers worry about who is responsible for protecting their data when a third-party payment solution is used,” said Shash Anand, SVP of product strategy at SOTI. “This heightened awareness stems from real issues like data breaches and payment fraud, which erode trust at every level. For retailers, addressing these challenges means implementing secure, mobile-first technology that builds confidence in every interaction. Retailers who act now to secure their platforms will set themselves apart as trusted partners in this fast-evolving marketplace.”
