Sydney, 4 May 2026: Australian businesses have embraced social commerce at a remarkable pace, with 67% now selling through social media platforms according to PayPal's 2026 eCommerce Index. The figure signals that social selling is no longer an emerging experiment for early adopters, but a mainstream commercial channel for Australian businesses of every size.
The results can be seen in sale numbers. Social media now drives more than 1-in-10 online sales in Australia (11%), and for businesses already actively selling via social, that figure rises to 14%, or one-in-seven, of their total online sales volume. The channel's rise from marketing tool to sales channel has been swift and is showing no signs of slowing.
Small and medium-sized businesses (SMBs) are spearheading the shift, with almost three-quarters (72%) now selling through social platforms, compared to 65% of micro businesses and 52% of larger enterprises.
For many SMBs, social platforms have become full storefronts rather than simply promotional channels. Although big businesses remain more likely to use social for brand awareness while funneling traffic to their own websites, SMBs are closing the loop on social, letting consumers discover, evaluate and buy without ever leaving the platforms.
Social media is already an established mainstay of business marketing in Australia. Almost nine-in-ten businesses (89%) now use social media to promote their products or services, with 60% posting weekly or more.
Australians are shopping where they scroll
On the consumer side, social shopping has also gained significant traction. More than a quarter of Australians (28%) made a purchase or payment through a social media or streaming platform in the past six months, highlighting a fundamental shift in how and where consumers shop.
This trend is being led by younger Australians. Almost half of Gen Z (46%) report shopping via social channels, nearly double the rate of Gen X (24%) and Baby Boomers (20%), and well ahead of Millennials (26%). For many Gen Z, social commerce is not a novelty, it’s simply how shopping works.
Fragmented platform preferences reveal generational divide
While Facebook remains the most popular platform overall, used by 58% of social shoppers, behaviours differ sharply by age.
Instagram is the platform of choice for Gen Z and Millennial social shoppers (41% and 52% respectively). However, Gen Z's purchasing is also spread across a broader mix of platforms, including Snapchat, Discord and Reddit – channels that businesses outside youth-focused categories may not yet be treating as serious commerce environments.
The diversity of social platforms shopped by consumers signals a further move away from traditional "one-platform" approaches, requiring businesses to meet consumers across multiple ecosystems simultaneously.
Josh Grech, Head of Business Marketing, PayPal Australia, said, “The numbers tell a clear story, social selling has moved from experiment to expectation for Australian businesses. The doubling of adoption in a single year is extraordinary, and it reflects just how quickly social platforms have evolved into fully fledged storefronts.
"As the path from inspiration to purchase collapses into a single, seamless journey, trust becomes critical. 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.
"With social media now driving more than 1-in-10 online sales, it has evolved beyond a marketing tool into an integral part of the commerce journey. Businesses that combine strong social engagement with seamless, trusted payment experiences will be best positioned to convert attention into revenue.”
ENDS
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About the research: This research report was produced by PayPal Australia Pty Ltd, based on a study conducted by Fifth Quadrant with n=1,012 consumers and n=410 businesses. The research was in field 16th October - 14th November 2025. All businesses had to sell partially or wholly to consumers, and partially or wholly online. Quotas were set on turnover and location, and the industry. The consumer sample was weighted by age, gender and location to ensure data was nationally representative.
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PayPal Australia was established in 2005 and has more than 9.5 million active Australian customer accounts. PayPal enables Australian consumers and businesses to easily and securely send, receive, and manage their money. The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence number 304962. PayPal credit services are provided by PayPal Credit Pty Limited (ACN 600 629 258) which holds Australian Credit Licence 568848. For more information visit PayPal Australia Newsroom for more information and follow us on Instagram or Facebook.
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