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B2C Merchants Defeat Logistics, Merchants Fight "Logistics War"

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B2C Merchants Defeat Logistics, Merchants Fight "Logistics War"

  • Categories:NEWS
  • Author:KW Brokevage
  • Origin:News
  • Time of issue:2020-04-01 14:43

B2C Merchants Defeat Logistics, Merchants Fight "Logistics War"

(News from China E-Commerce Research Center) At the beginning of the year, the price reduction war of several major domestic e-commerce giants online bookstores is still fresh in memory. In fact, the logistics wars of the major e-commerce giants have never stopped and are getting warmer.

 

For the three major bottlenecks that restrict the e-commerce market: integrity, payment and logistics, the first two have made progress through the development of recent years. Accordingly, logistics has become the key research content and main direction of the major e-commerce giants. Enclosure to build larger and more logistics parks is to work hard on hardware, while using the existing logistics network to expand product lines and functions is to actively prepare for software, whether it is the thousands of acres of Jingdong Mall in several major cities across the country The logistics center, or Dangdang's continuous establishment of its own logistics base, or the opening of Amazon's third-party seller platform, all show that logistics has become the most important development of e-commerce giants. An escalation of logistics battle. To a certain extent, whether B2C merchants can take the initiative in the e-commerce war, logistics plays a decisive role in the current situation.

 

Merchants fight "logistics war"

Representatives of domestic e-commerce have to mention four companies. These are the three of the book wars at the beginning of the year: JD.com, Dangdang, and Amazon.com, and another one is Taobao. The book war at the beginning of the year can be seen as a preliminary exploration and a small test of their own logistics model. Dangdang, which originally focused on books, and JD.com, which focused on major appliances, and Amazon, which focuses on "books and small appliances," can actually be well watered. Engage in their own business, but years of investment have made each logistics line more and more complete, and they also have ambitions to expand into other fields. Therefore, through price reductions, consumers have experienced the addiction to the bidding of low-priced books. The home's logistics line accepts more inspections of logistics orders.

 

In the process of competition, Dangdang, which just went public, has been tempered. JD.com, which is eagerly financing and actively expanding, has made better development. Amazon, which replicates the foreign Amazon model and connects with local excellence, has been tested. These three B2C businesses have greatly increased their reputation through this book war. I also have a deep understanding of its e-commerce and shortcomings. This shortcoming is logistics, so more investment and innovation in logistics have also begun.

 

E-commerce continues to evolve, and logistics eventually becomes competitive

B2C is in a period of rapid growth, and the contradiction in logistics is particularly prominent at this time. Throughout the history of domestic e-commerce development, we have experienced a low-key start of B2C, the period of C2C expansion and then the period of rapid development of B2C, that is, the failure of the large merchant model at first, the growth of the small merchant model, and the large business center model Rapid growth period based on the small business model. The old batch of e-commerce representatives in China, 8848, etc. are represented by B2C. They drifted between B2C and B2B because the concept of B2C was too early. In essence, they were subject to many problems such as integrity, payment, and logistics, and ultimately died. Then there was a period of vigorous development of C2C. Its best representative was Taobao, which deeply rooted the concept and transaction methods of e-commerce, especially the invention of its Alipay transaction payment method, which enabled effective control of payment risks that circumvent e-commerce transactions. At this time, the domestic logistics industry also had initial development, and finally realized the great prosperity of domestic C2C.

 

The prosperity of Taobao heralds the prosperity of B2C again. First of all, because Taobao has a large number of powerful sellers, and according to the "Twenty-Eight Rule" of economics, these 20% of large merchants account for 80% of the total transaction volume, and this is why C2C is eventually replaced by B2C The reason lies. Because in the shopping process, netizens' requirements continue to rise, and when netizens have more and more stringent requirements for shopping quality, the rise of B2C merchants is logical.

 

At the same time, more and more foreign logistics giants have begun to enter the country, domestic large logistics companies have begun to grow, and e-commerce giants have also begun to plan their own logistics models, establishing logistics parks or combining with third-party logistics companies to improve Service quality and level. In addition, the development of C2C has enabled the establishment of a payment and credit system, especially the advancement of electronic payment systems in recent years; the higher pursuit of product quality has made many B2C websites stand out. In the competition of B2C merchants, logistics is the best way to reduce costs and expand customer base, especially in the face of high domestic logistics costs. Through this effort, lower logistics costs and better services have become attractive to consumers. Important means of Just as domestic industry experts said: Without logistics as a guarantee, online transactions of e-commerce, especially transactions of tangible goods on the Internet, will not succeed. The logistics industry is the fulcrum of e-commerce, no matter how attractive e-commerce is, it is difficult to develop healthily without the support of modern logistics system. The problem of logistics has become the biggest problem facing domestic e-commerce manufacturers, and numerous explorations on logistics models have begun. Detailed analysis of the different logistics ideas of the four major businesses

 

The vast domestic market space and multi-level market demand determine that a comprehensive and diversified logistics model is the key to a company's success. More importantly, e-commerce companies of different natures must have their own characteristics.

 

1. Taobao

The domestic C2C leader Taobao enjoys a boundless reputation. In recent years, its B2C attempts and logistics follow-up innovation have been ongoing. It attaches great importance to Taobao Mall and invests more financial resources, policies and energy to support large customers, which can be seen as the vane of the e-commerce industry.

 

In terms of logistics construction, it actively implements its big Taobao strategy. By controlling logistics companies and working closely with major logistics companies, it can have more say in logistics construction and innovation. Compared with Taobao's logistics model, B2C professional companies have their own characteristics, which is the driving force for these companies' rapid growth. Compared with Taobao's modest strategy, Dangdang and Amazon are proactive in logistics. Through the two-pronged approach of hardware and software, logistics has become a driving force for the company's business growth.

 

2. Dangdang

Dangdang's model is to increase efforts on its book logistics network to achieve more efficient distribution of books, while also realizing all-round delivery of other items. Therefore, in addition to actively establishing its own logistics center, it is also focusing on software to form a distribution service company controlled by Dangdang.com to create an independent and efficient logistics open platform to provide e-commerce companies with COD (collection, sorting, and packaging). Payment) delivery service. That is to say, in order to meet their own logistics needs, more e-commerce vendors are accepted to share platform results, value-added logistics system, and also reduce their own distribution costs.

 

3. Excellence

Excellence Mason went further. In early July, it officially launched the "I want to open a store" and "Excellent Amazon Logistics" services, which means that Excellence Amazon officially opened its third-party seller platform. Excellence Amazon stated that the launch of "I want to open a store" and "Excellent Amazon Logistics" aims to bring consumers more choices and more competitive prices, and to help sellers further develop their own businesses. Joyo itself is a fusion of domestic Joyo and Amazon. The greatest contribution to the success of foreign Amazon lies in its efficient and cheap logistics. Although it is impossible to replicate the existing foreign experience in China, the further exploration of its information, such as predictive response menus and efficient warehouse management systems, is worth learning from other colleagues. Comparing Dangdang with the excellent Amazon, it is not difficult to see some of the same ideas: to create a first-class multi-level logistics, through sharing with more e-commerce companies, to achieve logistics wins, and further promote the company's e-commerce development.

 

4. Jingdong

Compared with Dangdang and Amazon, JD.com is the one who is obsessed with logistics the most. The founder of JD.com even compares his company to the online version of Wal-Mart. He even pointed out that the development of B2C companies is actually a logistics company, so "in today's world The largest logistics company is Wal-Mart, not DHL."

 

JD.com, which implemented the distribution of major appliances from the beginning, puts more emphasis on the construction of logistics centers, because this is the most effective means to reduce the cost of large-scale commodity distribution. Liu Qiangdong, the founder of JD.com, has repeatedly emphasized that JD.com has two important costs, namely storage costs and distribution costs. The profit margin of home appliances is not high, and sometimes the distribution fee is even higher than the profit of the product itself. Therefore, if you want to make a profit, you must spare no effort to build your own logistics center. Compared with the development speed of e-commerce, the domestic logistics system is far behind, so the best way is to establish a logistics base with a high starting point, which will definitely leave competitors far behind. Core Business". JD’s super enthusiasm and investment in logistics at all costs can be seen as the high recognition of logistics by e-commerce vendors, especially B2C vendors, and it also reflects that logistics play a decisive role in the company's growth.

 

At present, the industry seems to have a consensus on the importance and value of logistics. The nature of a B2C company is no different from the traditional retail industry. Logistics is the most important link in its value chain. Whether it is Jack Ma’s big Taobao strategy with Taobao mall B2C as the main direction, or Dangdang and Amazon’s self-built logistics and logistics platform sharing, or JD’s high-profile logistics investment and construction, the major e-commerce giants’ investment and emphasis on logistics The degree is unprecedented. The rapid development of B2C companies has given birth to a more complete and efficient logistics industry, and more efficient and complete logistics is also a symbol of the success of an e-commerce company and whether it can face competitors. (Source: "Information and Computer" magazine article / Zhao Yuyong)