Novice sellers have some misunderstandings before entering the shop
Many novice sellers think that they must choose a good product before opening a store, or find a good source of goods, and regard the selection and the source of goods as the preparatory work for opening a store, the two most important conditions
But this is not the case, because product selection is a long-term affair, and product selection is more based on data judgment and empirical judgment before making a certain correct choice.
The process of product selection is a long-term topic. In the process of operating a store, continuous product optimization, adjustment and re-selection. For novice sellers, it is necessary to select products before opening a store. Very difficult things are actually useless. Because in the absence of any data experience, I rely solely on my own imagination to choose products. The resulting error is very large, so it is a mistake to waste time on selecting products and not being able to start the shop too late.
The same is true including the supply of goods. Many sellers heard that they took the goods in 1688. I feel that it is a no-source delivery model, or that there is no advantage. As an old seller of Xiaopi for three years, we have also studied many peers. Some companies in the industry that have done quite well are actually getting the goods in 1688.
The principle is very simple, this is an era of e-commerce. Basically, most factories in China opened stores in 1688 or Taobao, so even if we find a certain offline factory to cooperate with us, in fact, this offline factory, they also have a store in 1688. Think about it this way, in fact, when we got the goods in 1688, we were in contact with the factory, and we didn't have to kill the factory. To a certain extent, this has some advantages over the factory itself, and the biggest advantage lies in the flexibility of the product.
If we ourselves are factories and we can only sell our own products, then if our products do not meet the requirements. The needs of shoppi platform customers may meet the needs, but it does not meet the aesthetics of shoppi platform customers. It is difficult for our shops to proceed. On the contrary, if we get the goods on 1688, we can get in touch with many factories across the country. In terms of choice and change, we have a lot of room for manipulation
Therefore, in fact, the selection and source of goods are not shrimp skins, and the sellers most need to spend time studying in the early stage. Recommendations given in terms of product selection and supply. When the store just opened in the early stage, the product does not need to be entangled repeatedly, as long as we first find a major category we want to make. 3C beauty, make-up. For these categories, we choose a category that we want to make, and go within this category. Randomly select some sub-categorized products, and then we can go to the shelves.
In the course of operation, we use the feedback data from the products we have already put on the shelves, and then proceed to the next step of product selection and adjustment. In this way, there is no need to have nothing. Before we start, we have to repeatedly struggle with what products to sell, which is a waste of time and inaccurate. Similarly, our former futures source buys goods from 1688 or Taobao. In fact, Pinduoduo is also very good. s Choice
So what are the preliminary preparations for a new seller of Xiaopi? In other words, what issues must be considered clearly. Here is a suggestion that you must first make a position for your business model.
In Xiaopi, there are usually three business models, the first is the distribution model, the second is the vertical category, and the third is the mixed model.
The mode of distributing goods is usually called the no-source mode in the market. It is essentially a mode of making a difference. Through some erp or software, a large number of products from other platforms are collected and put on the shelves, and the flow and orders are obtained by quantity. The advantage of the distribution mode is that it does not occupy inventory, invests, and invests in less business risks, easy to adjust business directions, etc.
The distribution model is very suitable for novice sellers with limited funds and no experience in e-commerce operations. However, the distribution model also has certain disadvantages. Let's explain the disadvantages of the distribution model.
The first is that the unit price of the product is slightly higher. Compared with the purchase and stocking of large quantities, the distribution model cannot get a lower price.
Second, because our product types and quantities are very large, usually there are even tens of thousands of products in stores that do shop. With so many product categories, it is difficult for us to achieve effective and accurate inventory management. To give a simple example, if there are some unpopular orders in our store, we will find the 1688 store where the goods were originally obtained. Maybe the 1688 store is also out of stock. At this time, we may not get the goods. Of course, there are other ways to solve this problem. It's just a little troublesome. Because after all, it is basically impossible for the same product to be sold by only one seller on 1688. We can also directly select the product to search for pictures and find other sellers who sell the same product to get the goods from another place.
The third seller's freight cost for the distribution model will be relatively higher than that of the seller who stocks in large quantities. Because we need an express delivery for every order we make, and a seller who stocks goods in large quantities, if he says to make 100 orders a day, all the goods are in his own warehouse, and it can deliver 100 orders in one express delivery. All shipped out. One disadvantage of the fourth mode of distributing goods is that there is no way to actually contact the goods, and the quality of the products cannot be guaranteed. At this point, we actually need to look at a certain amount of luck. Novices who open a store can contact me on WeChat shopify101. But in fact, buyers in Southeast Asia are not very demanding on product quality. The maturity of Chinese e-commerce also guarantees Chinese e-commerce. Sellers like 1688 Taobao sellers will also check the integrity of the goods before shipping. In general, we have no way to control the quality of the products. We can only look forward to the delivery from our previous home and conduct careful inspections.
Vertical business model
The second is the vertical business model, which is very suitable for brand owners or manufacturers with stable supply.
This kind of sellers often have strong financial strength, and it is recommended to adopt a vertical business model that can bear a certain inventory risk. Compared with the distribution model, sellers who use the vertical business model. Because I am a factory, I have products that can carry out refined operations for my own products, and can also upgrade products or make some new improvements based on feedback from customer groups. Such sellers can also turn their stores into branded stores to create a certain brand influence, so that the brand can have a certain added value. The biggest advantage of the vertical mode is that it is very easy to control the upstream and downstream channels, and the strong financial strength also helps sellers to promote the market.
Of course, the vertical business model also has some disadvantages. The biggest risk of the vertical business model lies in the occupation of funds and inventory. If the products cannot be sold on a large scale, it is easy to cause huge losses.
The last mixed mode is actually a combination of vertical mode and distribution mode.
Distributors with multiple brands or sellers who are not completely sure of the business direction, but have certain strength, can adopt this model. The products of this model require that you need to stock up some goods, store the best-selling products in your own home, and use the form of drop-shipping the products that are not popular. This can reduce the risk, because the risk of hoarding the best-selling products is relatively low, and at the same time there is a certain amount. flexibility. This mode of operation is that the seller uses the distribution mode to test the products in the early stage. When tested, some products in the entire store have very good sales, some products are not sold well, and some products are not sold. , This time we can. By optimizing and re-selecting products, we can find a more stable and low-cost supply chain for the best-selling products, and then carry out a certain amount of purchase, and re-select the best-selling products.
The mixed model is often adopted during the period of business model selection or transformation. The advantage of this model is that it has the advantages of both the distribution mode and the vertical mode, but the disadvantage is that it is re-distributed in the middle or the vertical transition. It must be done well. .