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Is the Chinese factory affordable to supply the self-operated business of the cross-border e-commerce platform?

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In recent years, traditional manufacturing companies or foreign trade factories have transformed more and more cross-border e-commerce fields, and most of them have entered the role of “sellers” or “suppliers”. Can be "this is the same root", different trading models lead to the fate of the two to different roads: first Amazon self-employed to eat the interests of third-party sellers, VC account and selling were criticized; after the trade was self-employed was exposed due to financial constraints in arrears ...... Behind the frequent occurrence of self-operated business slots, is it possible for traditional manufacturing companies or foreign trade factories to supply self-operated platforms?

Ordinary sellers and self-operated supply to the platform, which role is more popular?
There is such a phenomenon that cannot be ignored: the combination of self-operated gameplay and platform gameplay is becoming a new focus for cross-border e-commerce industry competition. For example, the self-operated Amazon has a strong role in cross-border e-commerce online retail platform, and the revenue growth has become more and more popular. In the fourth quarter of 2018, Amazon’s net sales amounted to US$72.4 billion. , a year-on-year increase of 20%. The "old driver" who is deeply involved in the platform game, Alibaba, has also set his sights on self-employment. In 2017, he quietly launched the "Taobao Heart Selection".

Quanzhou shoes and clothing owner Chen Qinghe (a pseudonym) told Hugo. "With the Amazon platform and its own business as an example, under the platform play method, the investment manager will select and invite third-party sellers of different categories, different regions and different mass levels to settle in. The Amazon platform is more of a channel and information carrier, enabling third-party sellers to provide a trading platform for their cross-border trading. Under the self-operating game method, it is equivalent to Amazon's own products purchased by the factory, and then rely on its own resource channels. The 'Amazon' brand is sold, in which case the factory is defined as a supplier."

One party is a platform attribute that absorbs third-party sellers. One party is a self-operated output that is directly connected to manufacturers and factories. For self-operated games and platform games, will Chinese suppliers be more optimistic about who?

1. Multi-channel revenue generation, digesting stocks

James said, "We are all in the above two channels. For several years in the market, we officially joined cross-border supply and sales in 2013. At this stage, the platform for creating independent brands is mainly AliExpress, Amazon, eBay, Wish, Lazada, etc., in addition, we also supply cross-border e-commerce sellers and Jingdong platform."

Since the hatchery channel of the self-owned brand has been hatched, why does the factory want to supply the platform?

“Multi-channel revenue generation, digesting stocks”, this is the answer from James and some factory owners.

2. Self-operated gameplay brings new revenue growth points, which are favored by factories?

Industry insider said frankly: "No matter what mode, how to deal with consumers under the existing conditions under the existing conditions may be the key to discussing the platform and the self-operated model. The online and offline dual layout may be Campplay brings new revenue growth points to the factory."

Like the platform where third-party sellers are stationed, the online gameplay of the self-operated platform must be well understood, but what is the layout of the offline? A number of self-operated platforms, including Taobao's selection and Netease's strict selection, will also move to the offline mode in the form of physical stores while they have existing online channels. Relevant data shows that since the official opening of the store under the Taobao heart-selection line in April 2017, eight stores have been opened. At the same time, it is expected that in 2019, NetEase's strictly selected physical stores will be radiated to Shanghai, Beijing, Chengdu and other first- and second-tier cities. In the future, flagship stores and community stores will be opened.

Gary pointed out that the difference between the current stage is only relying on the online channel platform gameplay, and the online and offline two-way channels opened by the self-operated game method are added points for the supplier's order quantity and product popularity. In addition, suppliers who become platform-operated suppliers can also avoid operational and logistics disputes. The factory only needs to do a good job of focusing on products, perhaps this is the reason why most factories favor self-operated gameplay.

Step by step, clean up the potential "mines" behind the supply of self-operated platforms
In fact, long before the domestic e-commerce opened up and valued self-employment, and the self-operated platform of Amazon's cross-border e-commerce platform, part of the head sellers relying on B2C to start their own business, under the blessing of the capital side, began to set up a self-operated platform. For example, cross-border e-commerce practitioners, including Global Easy, Tree, Saiwei, and Export Easy, have played channel distribution under the self-operated platform.

You can often walk by the river, where there are non-wet shoes. Gary said with emotion, "There is actually hidden murder behind the supply of the self-operated platform. If the supplier is unfortunately recruited, it is more difficult to withdraw from the whole body."

Why did you say this? James’s cry of the “account period” tells why.

“Supply to the self-operated platform, mainly the billing period and the payment period of the payment, cannot be effectively guaranteed. Therefore, many of our peers have been ruined or closed down, largely because of the disputes and payment between the platform and the self-operated platform. Caused by the contradictions of clearing," James said.

In fact, there are no fewer than 10 similar cases in the past year when understands the payment dispute between the platform and the supplier. From the “overlord clause” of the damages, the tens of millions of goods from the supplier to the bank, the pressure on the supplier’s account period, the individual self-operated platform was smashed due to the shortage of funds or the tight payment of the supplier’s payment... a series of operation methods Between the self-operated platforms and suppliers that should have been shared with each other, it has also turned into a situation of revenge.

Unfortunately, this is far from the case. Fragile security controls have also caused some Chinese suppliers to become more nervous. Recently, foreign media reported that "China's cross-border sales of its own website leaked millions of records every week, including customer data, orders and payment records. The server is not password protected, allowing anyone to search for data."

The first-line brand foundry is popular on the self-operated platform. How do bystanders enter the game?

The pros and cons are clear, whether it should be laid out on the self-operated platform, perhaps every factory owner and foreign trade enterprise has a scale in mind. How to make a profit and deduct is the true test of the wisdom of each practitioner.

In this regard, the industry said: "When the e-commerce platform develops to a certain scale and seeks to transform and upgrade, it seems logical to cut into the 'self-operating' model." In Chen Qinghe's view, not only the e-commerce platform, mass scale and Cross-border e-commerce sellers or independent station sellers with slightly superior overseas resources will be part of the main force in the layout of the self-operated platform. However, at present, the foundry of a big brand may be one of the most popular objects of the olive branch at the current stage.

“In view of the self-operated status of our own independent sellers, in fact, we prefer the foundries of big brands or suppliers with perennial foreign trade orientation. Large wooden toy manufacturers are preferred, and other types of toy suppliers are also welcome. In terms of supplier entry standards, we do not have so many objective criteria, because cooperation is biased towards business negotiation is difficult to standardize, and the success of business cooperation is actually affected by the combination of factors such as profit stratification and entrepreneurial temperament. Wu Jiayang said.

In line with the selection of suppliers by independent sellers, Gary said that based on the big brand foundries, the self-operated platform will also strictly control the quality of suppliers' products, and take product definition, product design, industry manufacturing standards and qualifications seriously. And product inspection and other audits.

However, do you have such doubts: Why are suppliers from big brand foundries so open? Gary explained, "The reason is that the identity of the 'first-line big brand foundry' has already had a convenient channel to submit identity qualifications ahead of those suppliers whose origins are unknown and require post-screening verification, and there is still a guarantor behind it. In addition, in addition to the lack of brand-added value-added services, the products produced by the first-tier big-name foundries are fixed, so that buyers can enjoy almost the same product quality experience with less money than the first-line brands. The reason why the self-operated platform mainly chooses this part of the foundry."

In addition, as the branding trend of cross-border e-commerce industry becomes more and more obvious, the self-operated platform also incorporates the brand concept into the business layout. In this regard, the relevant person in charge of Global Eslite pointed out to "Global Easy's self-operated platform represented by Gearbest has always focused on brand and word of mouth. In the business port, it is hoped to attract suppliers with certain brand capabilities. When entering the market, such businesses often have certain capital operation capabilities, and they will have independent competitive product analysis and market analysis capabilities. The products also have certain characteristics and market competitiveness. For such suppliers, we will give different levels of policy inclination. And support, such as open sharing product information, customer complaint information and other data, to promote internal and external promotion, traffic support, but also from production capacity, quality control capabilities, delivery speed, price, service, supplier's own supply chain, etc. In terms of certification and management of suppliers, and development and win-win with suppliers."

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