Today we will learn more elaborately about social commerce; in our previous article, we have learned an overview of the social commerce of what it is. First, let's see how and social commerce work, things such as how to get started, how to handle shipping, how to gain more sales, etc.
What is Social Commerce?
When you sell your products through any social media platform such as Facebook, WhatsApp, Instagram, and Twitter, that is called social commerce. Commerce that takes place on a social media platform is known as social commerce. There are two classifications in social-commerce They are Accountable and non-accountable commerce. These two are the most used business strategies in social commerce.
If you start a website and collaborate with the third party, it must be an accountable process.
Registered businesses that engage with social commerce are accountable. Facebook page is the backbone of these kinds of businesses. Let's assume you are starting a social commerce business. You would have to create a Facebook page for your business.
If you want to do an accountable business, you should utilize the shop option in the tab. Everything you do is saves as a transaction, such as how many products you sold, what is profit, etc. You should acquire the required license for the type of business you do. For example, if you are selling drugs, you should own a drug license legally. When people buy your products, you can redirect the users to your website to complete the order through a payment gateway, or use the third-party apps provided by Facebook. For example, you can use Stripe to complete the transaction without even redirecting your customer outside Facebook.
If you're going to do a non-accountable business, you can share your products as posts and by sharing that with friends and family. Initially, small businesses often go for this type of commerce. The product images and details are all included in a single message or single post. You can then share the post or message on social media. To sell the products, you can ask your friends to share the product-messages with their friends or share them in groups. Most orders are prepaid payments for this type.
How to start?
Let's see how to start your business through Facebook. First, you will have to create a Facebook page matching your business name and set the respective category of your business. Take a look at the terms and conditions to learn what you can do and cannot do. With the Facebook Ads Manager and Facebook Business Manager, you will able to structure your online store correctly.
After you list your products in the Facebook shop, you will see an option to promote your product. By using this promotion, you will be able to reach a lot of customers. Or let's assume you are posting something about your new product. The Facebook algorithm finds which post does better reach the audience So that you can boost that particular topic to reach more people. Also, this can help you find new customers.
In non-accountable type, There will be no trust So that you will only be able to reach your closer circles like friends and families. It is almost impossible to build trust among users in the non-accountable process.
If you have your Facebook shop, You will be able to list your products under different categories. Users will be able to browse through you were each product by categories and sections.
If you're Posting your products as posts, your customers will not be able to go through it quickly. If your customer wants to buy a product from the non-accountable process, They would have to contact the business owner directly through messages And enter about the product, its prices, and its variants. As you can see, the non-accountable process is lousy.
Most people will not trust the non-accountable social commerce because there is no guarantee involved. You can overcome this by providing cash on delivery services or prepaid orders. If you want to offer cash-on-delivery for orders, you will have to register GST to tie up with all courier partners. You won't need a GST registration if you are delivering your product as a Personal courier.
There is a wide range of opportunities to expand your business if you are registered. So it is advisable to go for an accountable social E-Commerce. At a minimum of Rs.35, there are many courier companies providing courier services. It cost around Rs.65 for a Kg.
Most business vendors have asked for payment solutions. Some businesses have set up the Facebook store, but they do not know how to figure out the payments. For that, you will have to sign up for a payment gateway to receive payments from your customers. Some of the popular payment gateways are PayUmoney, RazorPay, PayUbiz, etc. Whatever payment gateway you choose from these, you will have to pay a commission fee for every transaction made to your account. For example, if a customer orders at a total of Rs.100, the payment gateway charges a 2% of total and will credit you Rs.98 to your account.
Even the regular businesses will have to come to social media to run the promotions of their products. Social commerce is not an exception for it, because you cannot promote your products anywhere else. So you could create a small video about your product and boost content. Whatever you advertise on the Facebook page, That can be promoted on the Instagram page too, which will help you reach even more audiences.
If you have a Google Merchant account, you will be able to add products to Google shopping. And it's not fully launched in India.
If you are going to test-run for your business, you can do non-accountable social commerce. But when your business reaches More than 100 people, you should definitely go for accountable commerce. That's it for social commerce; stay tuned for more business lessons.