I read an article in the Dallas Morning News today about retailers using Facebook as a platform for building online stores. You can read the article online here. People have been attempting to monetize social media since the phenomenon began, but this is the most direct effort I’ve seen. With over 50 million people active on Facebook, there’s plenty of incentive for retailers to get in on the action. However, I think that it would be a mistake to only focus on sales, and therefore overlook the social aspects of Facebook.

Why are retailers doing this? According to the article which quoted Henry Wong (CEO of Adgregate Markets) “Because this is where the customer is hanging out. They’re not hanging out on websites.” Hmmm, why could it be that customers aren’t hanging out on websites? Could it be that mindset which refers to visitors as customers? I think that has alot to do with it. It’s been a while since I’ve visited a website with no advertising; one that isn’t just trying to sell me something. Facebook is a place where people go to goof off and check in on friends that they may not see on a daily basis. No one goes to Facebook thinking, wow, I hope I can find something to buy. Retailers need to be aware of this and remember not to press the sale too hard. Otherwise, they could force visitors to move on to other time wasting websites.

The big boys are doing it, but what about small business? I think that Facebook and social media in general could be a fantastic avenue for small businesses to create awareness and even sell their products (or services). Why? Back in the old days, if you wanted to sale something, you advertised. If your advertising budget was substantially larger than your competitor (and you weren’t a total buffoon) then you would take home more profits. Today though, when a youtube video of some kid playing a video game can go viral and generate hundreds of thousands of views, it seems like there’s a more level playing field. There’s nothing to stop small businesses from taking advantage of social media to generate sales, and if they are creative about it, they could even outsell some of their bigger and badder competitors.

So, is “social retailing” the obvious next step in monetizing your social media success? Actually, I think it is. It’s a fact in business that if business can make money doing something that isn’t against the law (even that doesn’t stop some) then they will do it. Retailers can and will sell on Facebook, and they will generate some income. The bottom line though is that people only have a finite amount of disposable income, and I don’t think setting up another sales channel (which incidentally will compete with your own storefront / website) is going to have a dramatic effect on sales unless retailers start getting creative in leveraging the social aspects of social media.

Think I’m full of it? You know what to do.