Global E-commerce: Will You Refuse Extra 10% Profits?


The rise of the cross-border E-commerce makes the procurement easier and more convenient since Internet procurement is unlimited to order quantity and has more advantages in price which is much more competitive than traditional wholesale. Meanwhile, shipping duration of the cross-border procurement has been shortened to a large extent. For example, in case of shipping goods purchased online from China to the United States, the shipping duration by ePacket has been shortened to about 10 days at fastest. The cross-border E-commerce has become more and more important for medium and small-sized merchants from all over the world.
As is well known, the E-commerce has great advantages in rich products and competitive price. However, as a purchaser, have you really been benefited from such advantages? In a word, cooperating with a purchase platform which provides products of higher quality at more competitive price is always the most important to purchasers.
Let’s talk about commissions charged by several main E-commerce platforms. Nothing comes for free. It seems that you get the benefit, but the price has been paid. (The commission proportion shall be compared with each other taking accessories as example for equal comparison).
I. Global E-commerce platform is the main procurement channel, but the price shall not be the advantage as for medium and small-sized merchants upon comparison of the following data.
1. Amazon: about 15% of order totals shall be charged as the commission.
2. AliExpress: about 8% of order totals shall be charged at least as the commission.
3. Wish: about 15% of order totals shall be charged as the commission.
4. Ebay: about 10% of order totals shall be charged as the commission.
II. Many regional emerging E-commerce platforms charge commissions no less than the aforementioned main platforms, and price of products supplied is not much lower in fact.
1. Newegg: an E-commerce website of the United States, charging 12% of order totals as the commission.
2. Cdiscount: an E-commerce platform of France focusing on wholesale, charging 15% of order totals as the commission.
3. Lazada: the largest E-commerce platform of Southeast Asia, charging 12% of order totals as the commission.
4. ioffer: small-amount wholesale platform of the United States, charging 10% of order totals as the commission.
Compared with traditional procurement channel, advantages of cross-border E-commerce are self-evident. With stable development of those large platforms, the price shall not be taken as advantage any longer. What’s more, more and more terminal consumers begin to buy from the E-commerce platform directly taking the price into consideration. As a result, wholesalers’ profits are squeezed imperceptibly.
However, in fact, traditional retail market won’t disappear due to E-commerce. In order to ensure their profits, the medium and small-sized merchants need a more advantageous procurement channel.
More and more enterprises have separated themselves from those large platforms and begun independent development. They establish independent PC client and mobile client platforms to conduct transactions with overseas purchasers directly. They would rather spend resources developing their own apps than lose the advantage in competitive price.
As for the cross-border E-commerce, costumes and accessories are always developing fastest. There are several highly-recommended emerging vertical E-commerce platforms as follows. They implement independent operation through signing contracts with factories directly. Without any commission, their price is obviously more affordable and more reasonable.
1. PatPat. Available in 2014, PatPat focuses on maternal-neonatal toys market and implements B2C mode by developing mobile client. The platform takes the United States as target market and lower-middle income and young families of Europe and America as target consumers. Price of products on the platform is equivalent to 30% of that on Amazon on average.
2. Chic Me. Available in 2015, Chic Me focuses on female costumes market and implements B2C mode by developing PC client and mobile client. The platform takes females of Europe and America as target consumers. Price of products on the platform is 20%-40% lower than that of local retailers on average.
3. FashionTIY (www.fashiontiy.com). Available in 2016, FashionTIY focuses on jewelry and accessories market and implements B2B mode by developing mobile client. At present, 15 categories are added in the app, and about 1,000 products are updated monthly. The platform supplies accessories for the United States, Europe, Middle East countries, Russia and other regions, and mainly serves medium and small-sized accessory purchasers. All the products are sold at factory price without minimum order quantity. Price of products on the platform is equivalent to 10%-30% of that on Amazon on average.
If you have demands on procurement and want to get more profits, the aforementioned platforms are highly recommended because you can get extra 10% profits at least.

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