SOCIAL MEDIA COMMERCE

Social commerce is a form of online commerce that uses social networks

as another sales channel, both for products and services. You can consider
social media as a direct sales platform or as a place to push your store
from. In general. Companies include social selling among their
omnichannel management strategies.

What characteristics do SSR channels share?

A profile that can be shared with other users. Shows the connections you
have in common with other Community members. Create content related
to your profile Search for users based on shared contacts, common
interests, etc.
Selling in RRSS is not easy.
Primary goal: Drive website traffic for increased sales.
Social media is a complementary tool to attract interested customers.
Execution of a plan and strategy is crucial for social media success.
Paid promotions are necessary to grow followers.
"Shoppable bottoms" enhance the seamless purchase experience on social
media.

Community Manager
Professional responsible for building, handling and managing the online
community around a brand on the Internet, creating and maintaining
stable and lasting relationships with customers, fans or any user interested
in the brand.
A Community Manager is the voice of the company through digital or
online terrains... he is a content creator, a strategy designer, a firewall, a
data analyst, a searcher of topics and people of interest, a community
energizer.
4 types of KPI objectives for a Community Manager.
Acquisition: Acquire identified users as part of our digital strategy.
Engagement: Measure the feeling of belonging with the brand we
represent.
Conversion: Get our audience to take the actions we propose.
Loyalty: Make our community loyal, and always maintain communication
with our users/customers.

Social commerce – Facebook

If you want to sell on social media, you have to start with Facebook, unless
your potential customers:
• Be teenagers (go to TikTok)
• Be obsessed nerds living in a bunker (a YouTube video, you'll love it)
If you already have a store on your Facebook page, have it on Instagram at
the same time (Meta group). It's a way to do it without resorting to setting
up a Shopify or similar store. You'll be able to tag photos in your Instagram
feed with your products and people will see that they can be purchased by
clicking on them.
If you have a Facebook page, creating a store is as simple as activating the
"store" tab in the menu of your page, accepting the terms of use, starting
to upload products and adding a description and price. You will be able to
make massive product uploads. Facebook has been trying to integrate its 3
networks for some time. It has just bought Giphy (platform specialized in
GIFs),
If you have an online store, include the product URL. Customers who click
"Buy" will be redirected to your eCommerce store and complete the
purchase using your payment plan. Facebook Pay works in Spain.
If there is no e-commerce store, customers can message you to express
interest. Payment and delivery methods can be arranged, including picking
up the product in your physical store or using a payment system such as
Paycomet, Bizum, or PayPal. This allows features such as graphic logos to
display sales.
Social commerce - Instagram
1.- Activate Instagram Business
It will allow you to access functionalities such as those related to the
analysis of our profiles.
2.- Activate Instagram Shopping
3- Generate links in your photos, stories or carousel to take you directly to
your website

Social commerce – YouTube

YouTube does not yet allow you to make purchases, but it is a good
platform to generate potential purchase leads through awareness
campaigns such as Unboxing, product testing or directly through YouTube
Ads.

Social commerce – WhatsApp

WhatsApp Business offers a quick and free way to sell on social networks.
It serves as a fantastic sales tool, enabling you to upload a product
catalogue with prices. You can send promotions and updates to customers
with their mobile phone numbers, adhering to data protection laws. For
those without mobile access, advertise your WhatsApp Business number
in your physical store, allowing customers to enter and view your
catalogue.
The WhatsApp Business company profile comprises contact details,
location, product types, opening hours, and a crucial product catalogue
with photos, features, and prices. Given the limitation of one WhatsApp
account per phone, options include transforming a personal account into
Business, retaining all contacts and conversations, or using a dedicated
mobile for the Business account. Payment must be completed outside the
platform by sending messages with access to a payment platform or
directly through PayPal.
Social commerce – Twitter
You don't have direct selling tools on Twitter and, promoting products
aimed at the general public does NOT work in 99% of the cases. It is useful
to drive traffic to your web site but not to sell directly.
Twitter Shops allows merchants to curate up to 50 products for display on
Twitter. This free feature enables users to explore products from their
favorite brands directly from brand profiles. The "View shop" button on a
merchant's profile opens a dedicated shop section, where users can
browse items. When ready to purchase, clicking on a product opens an in-
app browser for more information and checkout on the merchant's
website. Currently in Beta stage and available in the U.S. for select
merchants.

Social commerce – Linkedin

Consider it only if you are in B2B, or selling education services and for the
time being as a lead generation tool through targeted campaigns or
organic content.

Social commerce – Pinterest

Pinterest has great power when it comes to visual tools. Its users use it to
discover innovations. 98% of people state that it helps them find new
things. Pinners are 39% more likely to be active shoppers than non-
pinners; When they do shop, they spend approximately 29% more. 93% of
pinners have used Pinterest to plan, research or make purchases.

Social commerce – Tik-Tok

Use Tik Tok Ads to increase reach, visibility, and engagement It is possible
to sell on TikTok with Shopify and here we tell you how to do it. It is easy
to use because you only need to have one account on both platforms.
Shopify's service comes at a cost to all users.
Livestream shopping events on platforms like TikTok enable brands to
connect with followers in real-time, driving conversions through
engagement and interaction. Once a brand reaches 1000 followers, they
can host live videos showcasing products, providing followers with an
immersive shopping experience without visiting a physical store.
Walmart's partnership with TikTok, for instance, attracted 100 million
viewers who could make purchases without leaving the platform. TikTok's
shopping tab for business profiles allows brands to showcase their product
catalogs organically, seamlessly guiding customers to the online store for
checkout.

Social commerce – Snapchat

Invest in social shopping features like Discover tabs, Shopping tabs,
Shoppable Buttons, Augmented Reality, Virtual Shopping Groups, and
Integrative AR to simplify product discovery for your consumers. You can
also virtual shopping parties and direct chats where friends/family can
share purchases with each other.

Payment Methods and Transaction Security

TYPES TRADITIONAL
Cash:
Checks:
Transfer: more secure method, but its biggest problem is the deadlines,
since the transfer takes time to be effective. It does not encourage
compulsive buying.
Cash on Delivery: highly insecure. In disuse Very slow and not very
operative.
Credit/Debit Card
Documentary Credits: Banks guarantee the legal security of the
transaction. The transaction occurs when both parties communicate to
their bank documentation that the transaction has taken place. It has a
high cost so it is not recommended for low amounts. It is used for B2B
transactions.

ONLINE
Payment Platforms: Paypal...
•Digital money
•Electronic wallet
•Payment by phone
•Smart cards
•Private-to-private cash exchange: Bizum

An e-commerce platform should offer as many payment options as

possible to customers trying to meet their preferences. The more
convenient and more payment flexibility, the higher the sales will be 3 or
more payment options increase conversion rates.
What do retailers want?
 Costs: professional solution but affordable in price (between 1% and
2%)
 Fast "sign-up" process
 Ease of integration: HTML, API, module development for all major
"e-commerce" platforms and team integration support ... and
avoidance of "bottleneck" solutions (Redsys)
 Security: trust in the brand offering the service
 Flexibility in the implementation of 3D Secure
 Customizable solutions, fraud management and support services
 Excellent customer service
 Quick purchase ("One click"): for recurring payments and mobile
payments (tokenization)
 Exportable management tool with real-time reports
 Seamless integration with the look and feel of the site.
 Telephone payments (MOTO / Mail Order Telephone Order). Multi-
currency payments or DCC for international transactions.
 Integration with other domestic and international payment methods
 Analytical payments and A/B testing
 Specific advanced system solutions (authentications, pre-
authorization, etc.) for vertical solutions (NGOs, digital products,
games).
 Additional modules (invoicing, tax calculations, shipping, etc.).
 Value-added services in marketing: loyalty platform and advertising
(paid media provide greater visibility and increased traffic).
 Affordable micropayment rates (<10 euros).
POS and Payment Gateway
The payment gateway is a service that is implemented in e-shops, to make
it easier for customers to pay. Depending on the payment gateway used,
the customer experience will be different.
It is useless to have the best design or the most desired products, if when
the customer wants to pay for their content in the shopping cart,
everything is complicated with what he cannot or does not know how to
pay.
•Let's differentiate between a virtual POS and a payment gateway
Technically a payment gateway and a virtual POS are the same but there
are logistical differences.
POS:
1. Customer completes the purchase using debit/credit card at
checkout.
2. Customer's browser encrypts card data using SSL or TLS for secure
transmission.
3. Encrypted data is incorporated into the store's payment platform.
4. Payment platform securely contacts the merchant's bank, providing
customer's card details.
5. Merchant's bank forwards information to the customer's bank for
verification and authorization.
6. Customer's bank checks data; if correct, it sends authorization and
approval to the seller's bank.
7. If the transaction is not approved, the customer's bank sends a
message indicating the reason.
8. Despite the appearance of complexity, the entire process takes only
a few seconds until approval or rejection is communicated between
all platforms.

Payment Gateway:
Payment gateways, like PayPal or Stripe, serve as independent alternatives
to traditional banks for e-commerce transactions. Payments made by users
are received in the merchant's PayPal or Stripe account, and depending on
configuration, periodic transfers are made to the provided IBAN account.
Customers often prefer payment gateways due to the convenience of not
having to re-enter card details on different websites, enhancing security by
limiting card usage across various platforms.

Benefits of third-party payment gateways:

In some countries, payment through third-party platforms is the most
recognized and reliable payment. If you are going to sell to other
countries, find out if they consider these platforms more secure than your
own stores.
• The fewer screens the customer has to navigate, the better. By sending
them to another platform to pay, you simplify the whole process.
• You avoid the customer a long process of registration and data entry that
can make them think twice to continue shopping in your store.
• Family Payment Methods

Paypal
Fast: PayPal allows you to send online payments instantly with a bank
account, credit card or any other source.
Easy: Make secure payments at the touch of a button. With PayPal, you
don't have to re-enter credit card information every time you make a
purchase.
Secure: You never share financial information because merchants don't
see your credit card or bank account numbers. It also has a fraud
prevention team.
Global: PayPal PayPal is a worldwide company, with more than 100 million
accounts and growing. PayPal is accepted by hundreds of thousands of
businesses worldwide.
•Free (Buyer): You can pay for purchases or send money for free to anyone
with an email address in +190 countries and regions. The merchant has a
commission which is what gets the company monetized.
PayPal introduces "Pay in 3 Steps," allowing consumers to split eligible
purchases (30 to 2,000 euros) into three interest-free installments without
commissions for late payments. The option is accessible during payment in
three steps, subject to PayPal approval. Customers can manage
subscription plans in the app, receive email notifications before fee
refunds, and make partial or total advance payments.

Amazon Pay: payment systems for Amazon and its network of online
stores. It allows a myriad of services such as the creation of as many
different accounts as you wish with different credit limits (e.g. for
children).

Analysis of the customer's creditworthiness

Customer purchase history. Available credit information and solvency files.
Online browsing behavior. Geolocation. Data provided by fraud prevention
service providers.
Other relevant data provided by various know-your-customer and anti-
money laundering service providers (KYC and AML services).

SCORING
Scoring is the anti-fraud protection system based on the scoring of the
different risk factors so that when it reaches a certain value the transaction
is rejected.
• Typical risk factors are:
• Purchase in a country that is not the buyer's usual residence.
• Purchase from several different IP addresses
• Multiple simultaneous purchase requests with the same card or from the
same computer on the same day
• Total purchase value or higher value than the usual buyer.
Apps that allow BNPL Buy Now and Pay Later are seeing a massive increase
in consumer demand, fueled by a pandemic that pushed shoppers toward
mass online purchases.
•These services, which allow the shopper to split an online purchase into
multiple payments that can be made over time, are seen as a "budgeting
tool" that avoids the high interest rates charged by traditional credit cards.
SSL (Secure Socket Layer)
Most websites incorporate SSL when requesting user data.
• It guarantees:
• Confidentiality: the message is not readable by a third party as it travels
encrypted. Integrity: the message cannot be changed but preserves
authenticity only for the seller.
• Disadvantage:
Does not guarantee the identity of the buyer (authentication) to the seller,
since by providing a valid card with sufficient balance, anyone can buy on
most sites.

SSL Certificate (https)

To ensure the security of data transmitted on a website, having an SSL
certificate is crucial. This certificate encrypts information, making it akin to
returning home in a private car from a store's parking lot, reducing the risk
compared to less secure methods. However, it's essential to use the
certificate selectively, especially during personal information input and the
payment process, as using it across the entire site may cause slowdowns.
Hosting:
•SSL ensures that information travels securely, but it does not prevent us
from having our site hacked or attacked.
•The place where we host our site (hosting) is an essential part of the
scheme, both physical and logical security.
•It is important when selecting our provider that we ask what the security
is and how this will minimize the risk of an attack.
SAFETY
Achieving a balance between safety and usability is essential in digital
systems. Biometrics, such as fingerprint or facial recognition, offers high
usability by eliminating the need for remembering passwords while
incorporating the security of individual body features into digital
payments. This makes biometrics a powerful and unstoppable tool.
Additionally, the application of artificial intelligence to payments focuses
on preventing and combating fraud. With millions of transactions passing
through platforms, AI has the capacity to learn and distinguish between
legitimate and fraudulent activities. This technology aids banks and issuers
in enhancing fraud prevention measures.
3D Secure is a secure payment method developed by Visa and Mastercard
for online purchases. It authenticates the buyer as the legitimate
cardholder by requiring the entry of a secret code sent to their mobile
phone. The purchase is only authorized if the correct password is entered,
enhancing the security of online transactions.

Online Fraud Metrics

The percentage of total transactions rejected during credit card data
validation is a key metric in risk management.
Denials often occur due to solvency issues, limits, card expiration, or
technical problems. The denial rate may temporarily increase with the
implementation of a risk management system, as it scrutinizes
transactions more rigorously, potentially rejecting transactions that were
previously considered valid. This adjustment aims to enhance the accuracy
of transaction processing and minimize financial risks.
The Abandonment Rate reflects the percentage of transactions abandoned
during the purchase process, frequently due to challenges with 3D Secure
authentication systems. On the other hand, the Manual Review Rate,
applicable in companies with risk management systems, indicates the
percentage of transactions manually reviewed upon suspicion of fraud.
This figure has a notable impact on fraud management budgets as manual
reviews demand significant resources, involving human capital for
meticulous examination and verification. Balancing these rates is crucial
for effective fraud prevention and efficient resource allocation.
LEGAL ASPECT E-COMMERCE

How do I know if a site complies with current legislation?

Three basic types of "legal legends”
Privacy Policy, Cookie Policy, Terms and conditions of use

LEGAL IMPLICATIONS:
DATA PROCESSING
Users of an online store should know what will be done with their
personal data, where it will go and how they can request access,
rectification, cancellation or opposition to the use of such data. This
information must be clearly, simply and easily accessible in the online
store.
GENERAL CONDITIONS
The general terms and conditions of sale set out the obligations of the
online store owner and the rights of the consumer once an order has been
placed.

RETURNS
The consumer has 14 working days to return a product. Although, not all
products can be returned, so the online store must reflect in detail the
return policy that will be carried out about the state of the product and
deadlines.

THE WARRANTY
The warranties of the marketed product, how long that warranty lasts and
how the right to use it can be exercised should be described.

REPARATIONS
The situations in which the company will be responsible for defective or
deteriorated products must also be explained.
DELIVERY
Meeting delivery deadlines provides value to an e-commerce site. The
general terms and conditions must provide information on delivery times,
the shipping company, situations where products are not in stock and
penalties in case of delay.

COMPANY DATA

Company data
Finally, the person responsible for the online store must provide
information regarding the owner of the store, as reflected in the LSSICE:
Name of the owner. CIF / CUIT / RUT or whatever the tax registration is
called:
Address. Contact us. Telephone. Mail
Registration data
When it is a page of a company that requires some type of administrative
authorization or inscription in any registry, this information must be
included. Also, if the company has a seal of quality or trust, it must be
included in the legal notice.

General Data Protection Regulation

Duty of information:
It is mandatory to inform all parties about:
➢ The existence of a file containing personal data.

➢ The purpose of the data collection.

➢ The mandatory nature or optional basis for response.

➢ The consequences of collecting and refusing to supply information.

➢ The possibility of realizing the right of access, rectification, cancellation

and opposition.
➢ The identity and address of the responsible file.
GDPR compliance is centered on protecting individuals' data. To minimize
risk, businesses should collect only necessary data and prioritize
transparency. Clearly communicate the purposes of data usage and
provide tools like an "unsubscribe" link. Ensuring explicit terms and
conditions, avoiding pre-ticked boxes, and prioritizing customer privacy are
essential for GDPR compliance. Respecting privacy and maintaining
transparency are key principles for aligning with GDPR regulations.

1. GDPR Governance:

 Encompasses strategy, regulatory analysis, assessment, policy

management, third-party and risk management, and
compliance.
 Essential for GDPR, it requires defining mechanisms to ensure
proper governance throughout the data lifecycle.
2. People and Communications:
 Addresses roles, responsibilities, and internal/external
communication.
 Emphasizes awareness among individuals handling personal
information, ensuring they understand the data they request
and store during interactions.
3. Processes:
 Involves defining controls, measurements, notifications of
non-compliance, and other processes.
 Examination of all personnel handling personal data to
effectively manage information rights.
4. Data:
 Encompasses personal data discovery, profiling, data catalog,
data quality, lineage, lifecycle management, data masking,
and citizen interaction.
 Focuses on managing all aspects of data—collection, sharing,
deletion, transformation, movement, or copying—in
compliance with GDPR.
5. Security and Privacy:
  Covers data security, leakage prevention, vulnerability
management, identity and access management, breach
prevention, security monitoring, and forensic analysis.
 Emphasizes measures to safeguard data and prevent
unauthorized access or breaches, aligning with GDPR security
and privacy requirements.

Law on Information Society Services and Electronic

Commerce (LSSI)
The information society service provider must give easy and free access to
the following information:
➢ Detailed identification information: name or corporate name, address,
entry in the commercial register data, VAT number.
➢ Administrative authorization, if necessary.

➢ If practicing a regulated profession: professional association, academic

degree, and where accelerated; professional standards applicable to
professional practice.
➢ If you carry out e-commerce activities: clear and accurate information
on price, applicable taxes, shipping costs, introduction of contractual
procedures, languages to formalize it.
Duty to cooperate with the various authorities and bodies forming part of
the administration.

Cookie Law
Users can decide whether or not to consent to the installation of cookies
on their terminals.
- Users must be provided with "clear and complete" information about
cookies: the information provided must be complete enough for users to
understand the purpose of cookies (if they can track their browsing habits,
for example), to know how their data is used, or who will have it.
Accessibility and Visibility:
No rigid guidelines are provided for the location of the cookie policy link,
but it should be placed in areas that attract user attention.
Informed Consent:
Consent can be obtained through express methods, such as clicking on a
specific section or inferring a particular user action.
Right to Information:
Users have the right to receive information on how to disable or delete
cookies and how to revoke previously given consent.
Excluded Cookies:
Certain cookies are exempted, including those used solely for
communication transmission and those strictly necessary for services
explicitly requested by users (e.g., login, authentication, identification, or
security cookies).

Consumer Law
Law 3/2014, June 13, amending the revised text of the General Law for the
Defense of Consumers, approved by Royal Legislative Decree 1/2007.
Changes affecting e-commerce:
- Pre-contractual information obligations: Sellers must provide the
consumer before the free contracting of products or services, at least in
Spanish, with the following information:
Main characteristics of the goods and services.
Ways in which the customer can complain.
Commercial guarantee, after-sales services and legal guarantee.
Payment, delivery and performance procedures, as well as delivery date.
The company undertakes to deliver the goods or perform the provision of
services.
MOBILE ECOMMERCE
M-commerce (mobile commerce) is the buying and selling of goods and
services through wireless handheld devices such
as smartphones and tablets. M-commerce is a form of e-commerce that
enables users to access online shopping platforms
without the use of a desktop computer.
But mobile commerce is more than just an evolution of e-commerce.
It has also served as a trigger for new industries and services, or helped
existing ones grow, including:
Mobile money transfers.
Electronic tickets and boarding passes.
Purchases and delivery of digital content.
Mobile banking.
Contactless payments and in-app payments.
Location-based services.
• Mobile marketing, coupons and loyalty cards.
• Over time, content delivery through wireless devices has become faster,
more secure and scalable. As a result, mobile
commerce has grown rapidly.
Mobile Shopping:

Customers make purchases using a mobile device, utilizing applications like

Amazon or web apps. App commerce, a subcategory, involves transactions
through native apps.
Mobile Banking:
Transactions are conducted through a mobile device, offering online
banking tailored for handheld technology. Customers access accounts,
perform financial transactions, pay bills, and make stock trades via secure
dedicated apps or platforms like WhatsApp chatbots.
Mobile Payments:

Customers pay for in-person purchases using a mobile device, presenting

an alternative to traditional payment methods. Digital wallets (e.g., Apple
Pay) and payment apps (e.g., PayPal, Google Pay) allow users to buy
products without physical cards or cash. QR codes are also utilized for
mobile payments, enabling users to send money directly to recipients'
phone numbers or bank accounts.
Examples of m-commerce use in specific industries include the following:
• Financial services. Mobile banking and brokerage transactions are done
from mobile devices.
• Telecommunications. Handheld devices are used to make service
changes and bill payments, and to do account reviews.
• Service and retail. Consumers place and pay for orders on-the-fly
through online stores.
• Information services. Financial, sports, traffic, weather and many other
news updates are accessed through mobile devices.
ADVANTAGES
Large Customer Base and Better Retention:

M-commerce offers a broader customer base and improved retention

compared to e-commerce, thanks to its wider accessibility. The
convenience of accessing M-commerce capabilities contributes to
enhanced customer loyalty.
Convenience for Customers:
M-commerce simplifies the shopping experience by allowing customers to
compare prices, read reviews, and make purchases at their preferred time
and location, providing unparalleled convenience.
Automation and Omnichannel Experience:
M-commerce automates customer interactions and sales through various
mobile contactless payment options. It creates an omnichannel
experience, facilitating product sales across multiple channels, including e-
commerce websites, Amazon, eBay, Instagram, and mobile apps.
Location Tracking Capabilities:
M-commerce utilizes advanced location tracking features, enabling
personalized recommendations and content based on a user's location.
This is particularly effective for sending targeted push notifications, such as
personalized discounts, when users are in proximity to specific stores.
Enhanced Reachability and Convenience:
M-commerce enhances reachability to target audiences. Mobile apps
enable businesses to connect with a larger audience, providing a seamless
and faster buying experience for customers.
DISADVATAGES
Poor Execution:
Designing intuitive mobile user interfaces for the smaller screens of
phones and tablets is challenging and costly. Specific navigation
functionality is required for effective mobile experiences.
Payment Issues:
Mobile payment options may not be universally available, and they may
not support every type of digital wallet. Geographic limitations and
compatibility issues can pose challenges for seamless mobile transactions.
Security Vulnerabilities:
Security concerns deter users from making purchases via mobile devices.
Despite two-factor authentication, mobile fraud is increasing, and not all
merchants have adopted effective fraud prevention practices for smaller
screens. Emerging threats like SIM swaps and mobile malware further
contribute to security apprehensions among users.