Analysis on Sharing of Different Operating Modes in cross-border electronic commerce

Representative companies: Tmall International and Ocean Terminal.

Summary: The two companies are different in scale, but in essence they all enter the platform with the merchants. The transactions are conducted by the merchants and consumers themselves, and the payment and information communication are solved through the platform.

Advantages:

The mode is light and the investment is low. Although there is no profit model, due to the special timeliness of cross-border, the turnover cycle of cash flow is very long, and a lot of cash can be deposited on hand. It doesn't matter how you make money. What the platform has to do is actually the volume of transactions. It doesn't matter if you make money or not.

JD.COM lost money at 10, but still went to the market. He thinks that e-commerce makes money by selling goods, which is a layman. The most important thing of the platform model is to maximize the essence of the Internet and reduce all intermediate links, which is the essence of e-commerce.

Disadvantages:

No profit point; Unable to control the quality of goods; After-sales service is poor, and cross-border disputes are different from those in China after all. Once there is a problem, returning goods is a very troublesome thing.

One thing that must be done to build a platform is to solve the supply chain. Although the essence of e-commerce is to solve the supply chain, the platform needs to be done more. The reason why local e-commerce is so strong is that there are so many express logistics companies to solve the supply chain, but none of them are mature cross-border.

Therefore, Tmall and Ocean Terminal will build their own warehouses to build logistics, and Ocean Terminal even has its own transshipment company to solve supply chain problems. Indeed, the platform is to solve the supply chain.

Suggestion: The threshold of platform mode is here. If anyone wants to take the platform route, it will be a little late, unless your operation team is as good as Tmall, and your supply chain solution has several express delivery capabilities. Otherwise, it is better not to touch it.

Second, C2C buyer mode

Representative companies: Global Purchase, Ocean Terminal Sweeping app, Street Honey, etc.

Summary: It is beyond reproach that Ocean Terminal first made the goods sweeping app, and later it was plagiarism. Several apps even copied the same interface. Of course, at the beginning of plagiarism, everyone began to develop in their own direction. For example, street honey and sea honey take non-standard goods routes.

Advantages:

Compared with merchants, the number of buyers is geometrically huge. Before we can find a suitable merchant, the buyer mode is the most suitable platform.

The problem of Sku is very easy to solve, and buyers themselves will introduce their own customer circle into the platform to help platform marketing. If you do it early, it will be easier to seize the mountain. The early Taobao is the best example. If you are a businessman from the beginning, you will never be able to do it. Only by relying on a small C can we slowly transition to the business. Cash flow precipitation is large.

Disadvantages:

High management cost and huge after-sales customer complaints; Too many fakes; If the background function is not done well, it is easy to lose buyers; The timeliness of logistics cannot be controlled; Homogenization competition is too fierce, and there are too many repetitions of goods; The interface display of pure app is limited, which will cause a lot of redundant information. Whether it can effectively prevent the display of commodity information is a problem that needs to be considered. There is no profit model.

Third, the B2C model.

Representative companies: JD.COM, SF Express, cross-border enterprises with various traditional industries in transition.

Overview: More and more tycoons are participating in cross-border electronic commerce, and the competition is fierce. B2C is not something ordinary people can do. Capital, team, supply and logistics are indispensable.

I strongly recommend that entrepreneurs who want to do cross-border e-commerce in this mode think clearly. If you are a traditional importer, you should be careful. The operation of e-commerce and traditional enterprises are not the same thing at all. The above four things are indispensable in the cross-border B2C field.

If you are an e-commerce practitioner, unfortunately, you still can't succeed without one of the above four. Cross-border e-commerce is different from domestic e-commerce and there are too many problems to be solved. You should not only do a good job in local e-commerce operations, but also solve the logistics warehousing, source procurement and the demand for huge benign cash flow, which ordinary people simply do not have.

Advantages:

The purchase price is low, so it is easy to attract consumers with cheap prices, because the essence of cross-border Haitao is "I want good and cheap goods". Cheap is a very important feature. The quality of goods is easy to control, the after-sales difficulty is not high, and the customer complaint rate is not high. Because of the unification of logistics, it is relatively easier to control the timeliness and reach consumers in the shortest time. With sufficient financial support, it can be spread horizontally in categories, making it easier to enrich product lines.

Disadvantages:

It burned a lot of money. The profit is meager, although there is a difference in goods, but the funds above the personnel cost, logistics cost and payment are too high, and it is already very strong to make it even. At the beginning, it was basically to burn money to grab the market. The model is too heavy and the threshold is too high, which may be the model of cross-border e-commerce in the future, not suitable for the present. Only mature e-commerce companies can do it, and entrepreneurs should never touch B2C.

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