Talk about a minority e-commerce project — second class e-commerce, similar to 1688 no supply, but heavy advertising.
I’ve talked to you about a lot of e-commerce related projects, such as Amazon Blue Ocean, Amazon Arbitrage, AppStore account sharing, 1688 No supply, and so on. You will find that I have a lot of e-commerce projects
Projects are like pearls, and we will gradually find that many projects can be linked together. Today, let’s talk about a small e-commerce project — the second type of e-commerce. It is similar to 1688 No Supply, but it is heavy on advertising.
I. Underlying logic of the project:
One type of mainstream e-commerce is increasingly weak (Washington
East, Amazon, etc.), more and more second-class e-commerce began to be known. Like when you were brushing
, was suddenly planted with a skin care product, and then you directly click the window to buy. In other words, the shape of e-commerce is changing.
In third – and fourth-tier cities, there is a group of middle-aged and elderly people who have not experienced PC
In the age of computer, they enter the mobile Internet directly with their children’s mobile phones. They may not have wechat Pay or use Alipay. They like to believe in getting paid and getting delivered. This group of people has always been relatively partial, mainstream platforms have not paid enough attention to their needs have not been adequately met.
As a result, a group of people directly adopt COD COD payment on delivery. When users are browsing the content, they suddenly see this product and think it is good. They fill in the form directly, and the merchant will send the product according to the form, which will be collected by the express company, unpack and check, and pay if there is no problem.
Better address the needs of this population.
4. Revenue Composition:
Profit = Revenue (user payment) – Cost (commodity cost + advertising cost)
Ii. Specific implementation
1. Selection and supply
Generally speaking, the COD products of the second class e-commerce are profiteering products, such as the telescope that played relatively hot before,
Balance car this, also some people do health tea, as well as a variety of black Friday products. In short, buy low, sell high. Why buy low and sell high? Because of the high advertising costs, the profit margin is not high, at any time may lose money)
Usually for 10 bucks, or a few bucks, you sell it for 10
Around 0, plus there is a 70% signing rate, it is possible to make money. Explosive products of second class e-commerce generally have some characteristics, which may not be available or easy to see on ordinary e-commerce websites.
The source of goods is generally to find the merchants on 1688, but now do COD of second class e-commerce is very specific source of goods. because
The so-called manufacturers on 1688 are all second dealers, not directly operated by the manufacturers. So there will be a problem, when your product exploded bubble net profit, but because you are not the upstream of the docking, it is likely to lead to the delay of your order (the factory capacity can not keep up, or the manufacturer’s goods are stolen by others through connections
There are a lot of people playing the second type of e-commerce, and the popular products are like a gust of wind, which may be outdated at any time. Therefore, to do COD of the second class e-commerce, we must first have a reliable source of goods. When the order comes, we should ask the merchants to deliver the goods as soon as possible, and then we can let the users receive the goods as soon as possible. If after five, six, seven, eight days, the user forgets or
If we don’t want it, it will affect the delivery rate and directly affect our profit (after all, we have already spent the advertising cost in advance, if we can’t recover as much as possible, it is very possible to lose money).
So do two kinds of e-commerce COD, one is to choose the product, to choose the right product (or with explosive products to follow fast, a explosive products out, immediately
Find the source of goods, materials, advertising), the second is to deliver fast (manufacturers should be reliable, otherwise you can not quickly put a lot of harvest, a little attention is easy to let you lose money in the receiving of goods)
2. Account opening on advertising platforms
Generally speaking, each advertising platform, they need a lot of advertisers, especially like the second class e-commerce, medical
Therapy advertising budget, high profit advertisers. However, due to the policy restrictions in recent years, many categories are not allowed.
Choose the platform, many people play the platform will have some different, such as Weibo,
Social networking Sites
Google and so on, there are a large number of players in play, the attributes of each platform is not the same, so
The methods are different. Generally, it takes dozens of dollars for second-class e-commerce to acquire a user. Therefore, how to reduce the cost of advertising as much as possible is the skill of every advertising personnel.
Luban e-commerce for example, generally open Luban shops, is required to pay a deposit. When opening an account, there is a straight
Camp center and agents two ways to open an account. In fact, the operation of the direct marketing center is basically ignorant of operation. More objectively, it should be called sales. They only have one purpose, that is, let you make more money, let them complete the performance and get commission, and finally they don’t care whether you make or lose. So the general advice is to find an agency, the most
At least in order to compete with the direct marketing center advertisers, they have to highlight their operational ability (although the real reliable is not much), but at least will give you some operational analysis, basic data, will help you to stare at the data background adjustment.
So the general ideal is, how do you want to move the AD, the average account
To agents to operate, generally operate their own.
3. Advertising materials:
Generally, second-class e-commerce is single-page advertising, and this kind of production is relatively simple. If you make a single page, the copy can be directly copied from your competitors. After all, their copy has been tested by N sets of schemes, and the transformation may be better. Let’s go again
From a number of copywriting, choose some high conversion rate material out, can be amplified.
Advertising, you need video material. Generally, a professional shooting team can solve the problem of this kind of material. The video needs to consider various indicators such as the broadcast rate, the like rate, the comment rate and the forwarding rate, so for the converted video
Material, to enlarge, the conversion of poor material immediately replace.
Some advertising agencies will also shoot videos for you, so sometimes you can save this, depending on the agency’s service.
4. Logistics/Express delivery
Since express is acting as a collection agent, that is to say, our capital turnover can not be around the express company, so
The quality of express companies will have a great impact on the rate of signing, many express companies will not choose to deliver goods to the door, if the user does not sign in time, it may be returned.
Generally, the COD of second-class e-commerce is mainly used by SF Express, Jingdong and Deppon, which can directly inform users and collect on behalf of them. although
The cost is more expensive, but at least the signatory rate will rely on a little bubble net income. But it is best to have one or two alternative express, four or one da or post, after all, some places, SF Express, Jingdong and Deppon may not have coverage.
Express fee this should pay attention to some, in Jiangsu, Zhejiang, Los Angeles, Guangdong, these areas, due to competition
Large, so we can negotiate the price by quantity. After all, what we do is quantity. Sometimes we can run thousands of orders a day. Even if the price difference is 1 dollars, it will be tens of thousands of thousands of dollars a month. What you save is what you earn.
Signatory rate: The annual Double 11, 618 such big promotion festival, suggest taking it easy
Points. Because it is often easy to produce logistics warehouse explosion, COD of second-class e-commerce values the speed most. If the goods are delayed in the logistics warehouse explosion, it may be directly rejected when the user’s hand, resulting in a decline in the signing rate or even a slump.
5. Special attention:
Signing rate: Signing rate is the life of COD of second class e-commerce
Line, the cost of advertising input is fixed, the cost of commodity procurement is also fixed, but there is an essential difference between 80% and 50% signing rate. If you do 80%, you’ll probably make some money. If you do 50%, you’ll probably lose money.
Payback rate and payback: general logistics company on behalf of the payment for goods, will
Payment will be collected after deducting logistics expenses. Therefore, the return rate indirectly indicates the cost and signatory rate of logistics, which should be paid special attention to. General logistics companies have different policies, some weekly settlement, some monthly settlement, some cash, some can hit the bank card, etc., so this also needs to be a good choice, quick recovery of money
A Courier company that doesn’t bother you.
Secondary delivery and forwarding: For COD of second-class e-commerce, there will certainly be some goods rejected, resulting in a long-term backlog of goods (Generally speaking, if the user refuses to accept, the primary manufacturer may add more price for you to deal with, but the second-hand business is impossible to deal with these returns for you.
So there will be a certain amount of backlog, which will either be sent back to your company or sitting in the logistics company). You can cooperate with a logistics company for fast forwarding, that is, you don’t need to deliver goods from the manufacturer, but directly ask the express company to deliver the goods to you. This will revitalize assets and reduce storage costs.
Iii. Project Evaluation
1. Suitable for people:
This project is more suitable for people with a certain amount of advertising experience, and there is a certain amount of capital ability, after all, when a large amount of capital flow, it will inevitably involve the cushion capital.
This piece of cost is still relatively heavy, and more to eat dividends, if there is a flow dividend, buy
The volume cost is low, so it’s easy to make money.
3. Risk and Control:
Signatory rate: Signatory rate is the biggest risk of this project, it is very easy to affect the profit or loss. So to find a reliable manufacturer, there is a high quality reliable supply, it is possible to have no flow dividend, but also to make money.
Explosive rate: this part mainly depends on the ability to put hands, to material, advertising fast, with explosive products with fast and accurate, only in this way, it is possible to produce as many explosive products as possible.
This project is mainly to eat explosive money and flow dividend.
For example: a product 1688 is 10 dollars,
The cost of the order obtained by advertising is 40 dollars, the price of the product is 100 dollars, and the signing rate is 70%. A total of 1000 orders have been placed. In other words, your advertising cost is 40,000, your payment return is 70,000, and your commodity cost is 7,000 (not counting the processing of returned goods for the time being).
, then your gross profit = 70,000-40,000-7000 = 23,000.
That is, in this single order, you make a gross profit of 23 dollars per item. If you can run 10,000 items, you make 230,000 dollars. If you run 100 pieces, you make 2300. But when you step on one of them
Hou, a day to run four or five thousand, even ten thousand, is possible. The COD of the second type of e-commerce, a few years ago the birth of more than N millionaires, multimillionaires.
5. Project extension
Overseas advertising: The biggest cost of this project is actually the advertising cost. As long as the cost of buying quantity has dividends, it is easier to earn money.
In China, it is difficult to find such flow depressions. In foreign countries, due to the wide range of places and different policies, it is easy to form flow depressions. That’s one of the reasons so many people are doing overseas advertising these days.
This project is quite complex, need to do a good data model, need to be skilled in this field
Plowing carefully, constantly optimize. If you have a certain amount of experience in advertising, you can actually do it. After all, many advertising practitioners earn their first bucket of gold from this kind of easily amplified advertising.
The above items are shared for reference only, the project is changing, the idea remains the same