About 67 per cent of Australian businesses now sell through social media, indicating social selling has become a mainstream commercial channel, according to PayPal’s eCommerce Index.

The shift is reflected in performance data. Social media accounts for 11 per cent of online sales in Australia, rising to 14 per cent among businesses that sell through these platforms.

Social media remains a core marketing channel, with 89 per cent of businesses using it to promote products or services and 60 per cent posting at least once a week. Its role is shifting to a transaction channel.

Small and medium-sized businesses (SMBs) are driving adoption. Nearly three-quarters sell through social platforms, compared with 65 per cent of micro businesses and 52 per cent of larger companies. Large businesses direct users to websites, while SMBs complete transactions on-platform, from discovery to payment.

Josh Grech, head of business marketing at PayPal Australia, said social selling has moved beyond the trial phase to become an expected channel.

“The doubling of adoption in a single year is extraordinary, and it reflects just how quickly social platforms have evolved into fully fledged storefronts.”

He said as purchase steps shorten, trust becomes a key factor. For new brands, a payment experience that is fast, secure, and familiar can affect conversion rates.

More than one-quarter of consumers have purchased and paid directly through social media or livestream in the past six months. The share is higher among Gen Z, at nearly one-half, about twice the level of Gen X and Baby Boomers, and above Millennials.

Platform use differs by age group. Facebook is used by 58 per cent of social shoppers, while Instagram is used more by Gen Z and Millennials. Gen Z also uses platforms such as Snapchat, Discord and Reddit.

The distribution of activity across platforms indicates a shift away from reliance on a single platform, requiring businesses to operate across multiple platforms.

With social media accounting for more than one-tenth of online sales, social selling forms part of the commerce journey, particularly for businesses that link engagement with payment to convert demand into revenue.

• Further reading: One in five Australians have bought a big-ticket item on social media.