Social-media commerce accounts for 79% of online selling in India

Social media platforms have emerged as a major channel for online commerce in India, accounting for more than 79 per cent of total online sales of goods and services, according to a PayPal report released on Thursday.

The report, titled “Beyond Networking: Social Commerce as a Driver of Digital Payments”, highlights how rising internet penetration and rapid digitisation are changing the way Indian consumers discover, evaluate and purchase products.

India has also emerged as a strong market for social commerce across Asia. According to the survey, Indian merchants use platforms such as Facebook, WhatsApp and Facebook Messenger more extensively than merchants in any other surveyed Asian market, excluding China.

The growing use of social platforms for commercial activity is closely linked to the increasing adoption of digital payments. India recorded the highest share among the Asian markets covered in the survey, with 84 per cent of merchants using mobile-enabled payment methods.

The findings indicate that social media is no longer being used only for advertising and customer engagement. For many businesses, particularly smaller merchants and online sellers, these platforms have become part of the sales process itself, allowing them to showcase products, interact directly with customers and facilitate payments.

Consumer demand through social commerce is particularly concentrated in the beauty sector. The survey found that cosmetics and beauty products accounted for around 52 per cent of total consumer demand generated through social media commerce.

The strong presence of beauty and personal-care products reflects the role of visual content and direct customer interaction in social commerce. Product demonstrations, reviews, recommendations and promotional content can influence purchasing decisions and help sellers reach consumers without relying solely on traditional online marketplaces.

The report's findings also underline the growing connection between social networking and digital payments in India. As smartphones and mobile internet become more widely accessible, businesses are increasingly able to reach customers and complete transactions within the broader digital ecosystem.

The trend could be particularly significant for small and emerging businesses, which can use established social platforms to build customer networks and sell products without the infrastructure traditionally required for a standalone online store.