Things to Keep in Mind When Selling on Social Platforms

When it comes to drama, the social media ecosystem rarely disappoints. Now, however, instead of simply hosting controversial content, social media platforms themselves are raising eyebrows. 

From new owners to new rules, today’s social platforms are in constant flux. The ripple effects of ever-changing business models and policies are felt far beyond their walls, especially by retailers that depend on the reach and resilience of the social marketplace. 

If your business sells on social platforms—or is thinking about starting—consider instituting a few of the following best practices. Doing so may help you enjoy the benefits of a wider customer net without getting tangled in it.  

Know your network rules: Every social media platform has its own set of rules that merchants must follow. These include things like which products you can sell, how you will handle returns and what type of payments you are allowed to accept. Beyond the e-commerce rules specific to each network, payment acquirers and card networks also have guidelines for what merchants can sell and to whom. Subscribe to newsletters and set alerts to help you stay up to date on these rules, as they change often. 

Know your buyer: Most of the major social platforms and card networks offer built-in safeguards from identity thieves and other illegitimate transactors. However, they don’t often require merchants to use them. Consider seriously your risk tolerance and budget for fraud protection. An investment in powerful platforms with scalable tools that watch your back could pay dividends if your business falls into the crosshairs of a fraudster—or worse, an organized ring of fraudsters. 

Know your rights: It’s important to understand who’s on the hook when things go wrong. Some social platforms offer checkout tools that include chargeback mediation, but that’s only if you use their systems. If you link out to your own site, on the other hand, chargebacks and disputes will likely fall entirely on you (or your payment processor). Make sure you’ve activated all available protections and have a clear plan for handling disputes, especially when gearing up for high-volume shopping times, like Black Friday-Cyber Monday and Amazon Prime Day.

Know your banker: Partnering with a community bank will give your business more personalized service with bankers who know your name and your goals. Community banks like Bank Iowa are generally more eager than megabanks to help local businesses scale with strong treasury management services, like merchant processing, lines of credit and receivables. To keep the relationship strong, schedule regular check-ins and be transparent about your plans for and experience with social selling.

Turning social media turbulence into online sales traction

Social selling offers powerful opportunities for scalable sales—if you're up for the challenge. Keep in mind that you don’t have to go it alone, nor should you try. Good payment and fraud mitigation partners, as well as strong third-party tools, can help you more easily navigate the complexity behind the clicks. 

Bank Iowa would be proud to be considered part of your social selling team. Reach out to our Treasury Management team to share your goals, and we’ll create a plan together.