One in five Australians have bought a big-ticket item on social media

Social media is influencing a growing number of Australians to make purchasing decisions. These include large transactions such as cars, holidays or housing, according to research from Finder.

A survey of 1003 respondents found that 20 per cent of Australians have purchased a big-ticket item through platforms such as TikTok, Instagram or Facebook Marketplace. 

This represents an estimated 4.4 million Australians who said they bought a major item after being influenced by social media.

The most common purchases include a car (10 per cent). Holidays, artwork or jewellery account for 5 per cent, while collectibles represent 4 per cent. Three per cent of respondents said they purchased a house through social media.

“For a growing number of Aussies, social media isn’t just entertainment. It’s influencing some of the biggest financial moves of their lives,” said Rebecca Pike, money expert at Finder. She described the platforms as a “sales engine”.

She said targeted advertising, influencer content and recommendation algorithms repeatedly expose users to products linked to lifestyle interests or aspirations. This can shorten the path to purchase.

Pike also warned consumers to take care when transacting through social platforms, particularly for high-value items. 

“A 30-second video or a glowing comment section shouldn’t replace doing your own research,” she said. 

She advised buyers to verify sellers, review contracts and avoid transferring large sums without safeguards.

Pike said the findings show the role social media plays in financial decision-making. She added that these platforms can contribute to feelings of FOMO and post-purchase regret.

To reduce unplanned spending, Finder recommends applying a 24-hour rule before making purchases outside a budget. The waiting period can create distance between an initial impulse and the act of purchasing. 

Consumers are also advised to distinguish between wants and needs. They should also limit exposure to promotional emails or alerts that may prompt spending.

Finder also suggests that when consumers decide not to make a purchase, they can transfer the planned spending amount into a high-interest savings account.

• This story was originally published on Inside Small Business.

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