In 2025, social media isn’t just about staying connected—it’s a major driver of impulse buying, with Australians spending millions each year based on what they see online.
According to new research from Finder, 40% of Australians have made an online purchase after seeing an ad or product on social media—equating to a huge $3.5 billion in sales. From clothes to gadgets, Facebook, Instagram, and TikTok are leading the charge, turning scrolling into shopping.
For small businesses, this presents a massive opportunity. Social media’s highly targeted ads can help SMEs reach specific audiences, turning casual browsers into buyers with just a swipe. But it also comes with challenges—getting lost in the noise or pushing too hard could turn potential customers away. So, how can small businesses capitalize on the social media shopping trend while avoiding common pitfalls?
The impulse-buying wave
Social media is no longer just a place for socializing; it’s a major marketplace where Aussies are dropping cash. On average, Australians spent $420 on social media-driven purchases in the last year alone, with clothing (25%), beauty products (16%), and electronics (15%) being the top categories.
Platforms like Facebook (61%), Instagram (52%), and TikTok (40%) are proving to be the most influential, with Gen Zleading the charge—68% of them confessing to buying something after seeing it online. For small businesses, this opens the door to targeted, cost-effective marketing. But competition is fierce, so standing out in a crowded social space is key.
Turning social media trends into sales
As social media platforms get smarter with algorithms, ads are more personalised than ever before. Advanced data strategies allow platforms to serve up content based on users’ interests, previous activity, and behaviors. For example, Gen Z often sees tailored ads for products they’ve already discussed or shown interest in—leading to more immediate purchases.
For SMEs, this presents an opportunity to engage potential customers with highly relevant and attractive offers. However, there’s a fine line—overdoing it or being too “sales-y” can quickly turn consumers off. Crafting ads that feel like they’re a natural extension of users’ interests, rather than an interruption, is crucial to maintaining a loyal following.
The balance between treating yourself and managing impulse purchases
While social media can spark excitement and drive sales, it also encourages impulse buying, which can add up. Rebecca Pike, a money expert at Finder, advises Australians to balance their “treat yourself” mentality with financial health. For small businesses, this could mean finding ways to connect your products to customers’ everyday needs while offering irresistible but practical deals.
To keep consumers from experiencing buyer’s regret, here are some quick tips to limit impulse buying:
- The 24-hour rule: Encourage customers to take time before making a purchase by sending them gentle reminders or letting them know about limited-time offers.
- “Want vs Need” list: Help customers prioritize by offering solutions that meet their needs, rather than simply appealing to their desires.
- Unsubscribe from tempting emails: As an SME, keep your marketing emails streamlined to avoid overwhelming potential customers with too many offers. Focus on providing value and relevance in each message.
- Reward yourself: Offer incentives like discounts or loyalty points for customers who wait to make a purchase, adding a layer of satisfaction and financial benefit.
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