Should You Do Business on Social Media?

With technology advancing so quickly, it is undeniable that selling on social media can bring high returns. However, not every investor succeeds with this business model. So should you do business on social media ? These questions are answered Mona Media in the article below.

What is the concept of social media?

Put simply, a social network is "a virtual ecosystem" that connects users who share something in common. There, people can follow a person, an event or an organization. Popular social networks today include Facebook.com and others around the world such as Instagram, Zing Me, Twitter, Pinterest and Google.

A social network is like a large newspaper where users are both readers and "journalists". When you share something on social media, the people connected to you can read it, and they can share and spread it. You can use social media as a tool to run your own online business. Ask yourself: how many people can read the content you share (your reach), and are they interested in your product?

See more:

• 10 social networks you should join and 100+ things you should know
• 9 unwritten rules of social media marketing
• Embed a fan page in your website

Should you do business on social media?

What are the benefits of social media for business?

In business and marketing online, social media is very powerful. If you catch a social media trend, you may not have to spend a cent on advertising, media services or expensive banner ads. The results can also be many times better than traditional marketing.

As the old sayings go, "good news travels far" and "one tells ten, ten tell a hundred". Today, the power of spreading shows up on social media as "sharing". The more people read and share your content, the more people learn about it and share it again. Among them, some will surely need your product. With the right social selling strategy, getting known by many people draws attention to your product and lifts your sales.

In the digital age, social media has become fertile ground for business. But not everyone succeeds, because many people hesitate, believing that doing business is "profiteering" or "exploitation". The video below will help you better understand the benefits, the challenges and how to use social media to starting an online business effectively.

See more:

• Guide to effective online selling: 10+ online sales channels for you
• Why do online sellers ask customers to inbox for the price?

Some benefits of doing business on social media:

Cost savings

Doing business on social media saves both sellers and buyers time and effort in transactions. Transacting online saves a fair amount compared with shipping through the post office. Payment costs can drop by up to 20% if the seller lets buyers pay by bank transfer. Advertising and product introductions happen mainly on websites or social media. Best of all, you do not need a nice storefront in a prime location. You can sell from home and save the most on premises costs.

Fast and effective advertising

Today, the internet is considered the most professional distribution channel, because users can reach information easily and conveniently. When launching a new product, the first thing a business needs to do is post announcements, run ads and introduce the product. With traditional methods this is an expensive step that needs a large budget. But instead of spending heavily on TV and press advertising, you can bring your product to many buyers through social networks, or run professional website design services at a low cost with good results.

Flexible time, less pressure

In traditional business, your working time is not just the "standard" office hours: you also have to meet customers and partners outside working hours to introduce your product. With online selling you have more flexibility, because your online store is open 24/7 as a website or social media page. One click and customers can "visit" your shop and order in an instant. Customers can ask about product information, delivery policy, promotions and more. Meanwhile you can handle personal matters and still respond flexibly to customers, without much pressure.

Saves on staffing

If you open a store, you need at least 4 employees working from morning to night across 2 shifts, not counting managers or store supervisors. That is a fairly large payroll. Staffing can also be disrupted when problems come up. When you do business on social media, you do not have to worry about these things, because you can do everything from A to Z yourself just by using technology in your sales process.

Understand customer psychology

Receiving feedback from customers after they buy makes it easy for them to say whether they are satisfied. That builds trust with customers.

See more:

• Marketing on Zalo: an effective way to sell online
• Secrets to selling on Facebook for high profit
• Guide to integrating Zalo chat into your website

The downside of doing business on social media

Selling on social media benefits both buyers and sellers, as covered above. But in a fiercely competitive market with “a hundred buyers and ten thousand sellers”, not everyone makes a high profit from this model. In reality, quite a few individuals and businesses fail, and some even go bankrupt. The main causes are the following:

Weak security

When a customer wants to buy a product from a well-known shop on Facebook or Zalo, waiting in an inbox queue for advice wears their patience thin. During some sales livestreams in particular, commenting your name, phone number and address or personal account means making that information public. Scammers can exploit it for bad purposes.

Online fraud

There are plenty of scams and fake orders that leave buyers and sellers alike worried. For buyers, the product that arrives looks nothing like the photos online, so they become wary or give up buying online altogether. Another example is pay-by-transfer, receive-later deals: quite a few people get cheated or never paid, which leads to lawsuits and public call-outs. Sellers can be hit by fake “boom” orders (the buyer refuses delivery), earning no profit and taking an immediate loss on shipping both ways.

Income is less stable and less abundant than you think

Many people assume that selling online right now earns far more than working for an employer: a nice car, travel here and there… That is true, but only for those who succeed and are extremely sharp in business; not just anyone can do it. Income in business is usually neither steady nor plentiful. If you take it seriously, invest in learning and master the skills, you may well succeed in this field.

Don't trust formula courses

There are now many business courses online teaching how to sell online from “experts”. They are priced far from cheap, yet many people still choose them because they play on the wish to succeed and see profit right away. However, not every online course is a scam. In some cases you can find a genuine expert who gives you useful knowledge. So weigh it carefully before joining any course.

Build more than one source of income

Keep a main source of income, because doing business on social media is not simple: you will face many difficulties and even real risks. A steady job keeps your budget from being interrupted even when you hit risks or business losses.

So, with the information shared above, you should now have an answer to the question: should you do business on social media? You can then make the right choice for yourself.

Doing business on social media in the 4.0 era brings great benefits to both buyers and sellers. But every approach has good and bad sides, and selling online is clearly not the easy money many people imagine. If you decide to build a long-term business and succeed, research thoroughly and put reputation and quality first so you can stand firm and go further. Good luck with your business!

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