Americans Spent $90B on Social Media Shopping, Sparking Buyer Regret and Fraud Concerns

Social media has transformed consumer shopping habits, with Americans spending approximately $90.6 billion on social media-driven purchases last year. This surge in social commerce is fueled by targeted ads and influencer marketing, which facilitate impulse buying. However, this trend has led to significant buyer's remorse, with over half of consumers regretting at least one social media purchase.

A notable share of these purchases are perceived as scams, and many consumers report buying items they did not need. Financial experts suggest strategies for mitigating impulsive social media spending, such as reviewing bank statements to track purchases, unfollowing commercial accounts, removing saved payment methods, and setting specific budgets.

Employing a waiting period before purchasing can also help consumers evaluate their true needs and avoid regret. This evolving social commerce landscape presents both opportunities and challenges for the insurance industry, particularly concerning consumer financial protection and fraud prevention.