Free Self: The Business Way Of B2C

Over the past 1 years, there have been some contacts and experiences of B2C projects. There have been failures and successes. Writing down this topic is a summary for myself, especially for those brothers who are preparing to enter B2C, avoiding some possible detours.

The first problem is: B2C first is the retail business of the door, and it is neither "electronic" nor "commercial" before it has been put into scale.

Decide whether the business of B2C is valuable (pay attention, not to make money), or those traditional elements that can no longer be traditional.

1, see if you have any competitive source of supply.

Specifically, the commodity is not enough new, odd, special, the purchase cost is not enough low, whether the supply of goods can be monopolized, and so on, if it is good enough or low, then this advantage can not be maintained, from 100 single daily to 1000 OK per day. Similar to many martyrs, the tomato tree half-way stops from the resources of no brand shoes company, the same location of the good buy but popular, to have shoes, money, money; creative telephone sales of red wine Yesmywine volume suddenly discovered that red wine was a scarce product, forced to go to South America to find cheap red wine;

2, if there is no source of goods, you need to have a stable channel to get customers at low cost.

The domestic retail market is always the channel, and it is always the main channel for the Gome, WAL-MART, and the small B2C to arrive. In fact, the same is true of the B2C. The familiar with our company is that the first batch of customers has been brought up by the low-cost promotion of online games. Similarly, the sales volume of Bailian Emall, which you may not know very well, is actually quite impressive. Its traffic source is that little Lianhua OK card. Even the best home network of Bailian can rely on a small advertisement on the OK card to feed itself. It is unbelievable, but it is true.

3, if 1, 2 you can't do it, you have to see if your B2C business has any added value to the main business.

An independent B2C business, from a profit point of view, is not very valuable to many traditional companies; from the sales point of view, it is better to do well, and the total sales volume of online shopping will not be very high; and from the cost point of view, B2C is a "light" company to consumers, and it is a "heavy" company for manufacturers / branding companies. All costs / risks before the goods arrive at the customer must be borne by the company. The cost is not very low, and the management complexity is very high. If there is no other added value, the business will not be calculated. Therefore, many clothing and footwear brand companies begin to do B2C, usually because of a clean bill or a long tail demand (such as special clothes and shoes).

The service is very good, 100 pieces of freight free +COD arrived quickly, the gift is wrong, and it paid 5 yuan for me. The service is very good for the domestic B2C, but we can understand that this business can not make money. Why do we need to buy it safely? I asked my safe friend to understand that there are very few outlets of Ping An Bank / securities, and the cost of contacting customers is very high. They think that the customer data of the online supermarket is the most extensive and can be divided into customer segments by analyzing the number of purchases, which is much cheaper than the accurate advertising in the financial industry. The first acquisition is another special example of the main business added value: Shop No. 1.

4, if you can't do 1, 2 and 3, then you have to have money, have a lot of money, have a lot of money to integrate resources, and get source and source.

There's nothing to say about this. You can see many of the rising B2C are coming up.

5, a friend will ask, why did it go on scale? What's more, we need to use the scale system, including the front desk and supply chain. Every household does this, but this is not enough until you get 500 orders per day.

The essence question two: the difficulty of starting a B2C project depends in essence on whether it meets certain rigid demand.

1, from a macro point of view, the most fundamental reason for the development of e-commerce in the United States is that the service time of its traditional retail channels is the same as that of ordinary office workers. Online shopping has become a necessity. This can explain why more than half of the top10 e-commerce companies in the US are traditional retail origin.

2, from a microcosmic perspective, if a B2C project can meet or create some rigid demand, its comprehensive operation cost, especially the promotion cost and user experience cost, will be greatly reduced. Bailian Emall is one of the best examples. The website structure and UI of Bailian Emall are the most puzzling I have ever seen, and are very unfriendly to search engines. However, when this website binds the Lianhua OK card with an annual circulation of up to 14 billion, the huge rigid demand is created, so promotion and UI have become secondary problems.

3, from the existing cases, the so-called rigid demand can be roughly divided into three categories:

A: for some reason, it can only be bought online; (special characters that can not be bought under the line, such as chess net, or coupon can only be used online).

B: buying online is cheaper than buying online (Taobao, Dangdang, Jingdong, Vancl are all started).

C: buying online is more convenient than buying lines. (1 stores are represented by online supermarkets, all kinds of international purchasing websites).

4, if you think that 1, 2, 3 are a bit empty, there is a simple way of judging: you can ask a friend to ask why he has to go shopping at your B2C station; the reason you must buy is the rigid demand you need to meet.

Essential question three: how much investment does a B2C project require and how best to invest?

How much investment is required for a B2C project depends on how much resources you have. The more resources you have, the less money you will put into it. The so-called resources must be able to control and calculate the cost in a long term, including supplier resources, promotion of resources, logistics resources and so on. For example, the only value of promotion channels is its inherent customers. If you can not form exposure and interaction with the customer group for a long time, it is not very meaningful, because users can not remember you at all. Therefore, the occasional free advertising and activity opportunities can not be regarded as resources for B2C; in addition, B2C projects are very closely related. If the resources of any link can not be stable for a long time, they will form short boards for operation, resulting in loss of revenue. 1, one

2, in general, the B2C investment project in 2009 has gone beyond the millions of stages and started to go to tens of millions. The annual cost of three items of warehousing and logistics + marketing + website operation is between 300-500 million. If the annual sales volume is 10 million, it is necessary to calculate nearly 300-500 of the turnover funds. Of course, if you are very strong, you can borrow the banner of electronic commerce from the local government, which is another algorithm. In addition, the most taboo of investment in B2C projects is to add oil tactics, or not to vote, but to invest with the best resources, the best people, otherwise the latter investment will easily become blocked and eye-catching. Haier started to do business 7 years ago, accumulatively invested more than 100 million.

3, if we say that before 2008, e-commerce is the hunting ground for Internet companies, and 2009 is the first year of the traditional brand enterprises. We take ourselves as an example. 30 months ago, we talked about cooperation with Taobao crown, and became a foreign trade production enterprise in 24 months, and became a small and medium-sized brand in 18 months. Now it is a large traditional channel. If you want to invest in B2C projects, first of all, you should follow this trend; from 0, you can't compare with a very strong traditional brand or channel to invest together; in addition to personnel investment, other investments will be greatly reduced, and even the cost of promotion can be greatly reduced by the strength of the brand. This is not a conjecture, but a fact. Let's see suning.com: on August 18th, the advertising cost was not spent on 10 Fen, but sales volume had already broken 100 million.

Essential question four: how should a B2C project team be structured and how to assess it?

1, B2C's team structure is, in my view, a part of the current high cost. First of all, only a few people have actually done B2C projects, and fewer traditional ones have been integrated. But B2C project operation emphasizes collaboration and efficiency, and if leader of any sub team is not enough, it will directly affect the results of operation. It may be possible to find a cheap person who has saved thousands of dollars, and invisible tuition fees are more than ten million in one year. It is entirely possible for us to make a detour in this area. Generally speaking, even in Shanghai, Beijing, Hangzhou, such an e-commerce distribution center, such a team is also difficult to find leader, 15K or more can only be casual to find a successful case.

2, in theory, a standard B2C team, the core four people are: Operation Director, marketing director, customer service director, technical director; if there is no general manager, the operation director will be at the core; from the operational efficiency, the most important thing for B2C team assessment is KPI interlock, prosperity and loss.

A: Director of operations: responsible for the supply chain management and the overall operation of the website, the core of KPI is total sales and order conversion rate.

The core macroeconomic data of a B2C is total sales and order conversion rate. The reason why customers do not consider the unit price and the return rate is because the two parameters are not suitable for some products. These two points ultimately determine the ROI of this project. As a project leader, it is natural to be responsible for this.

B: Marketing Director: responsible for advertising and activity planning, the core KPI is the total sales volume and average CPS per sheet.

The core work of the director of marketing is to organize customers to purchase on the website. The most important thing is to see how many purchases have been made and how much the cost is per purchase. Reducing the average CPS on the premise of total sales is the guiding ideology of its work.

C: Customer Service Director: responsible for customer service team operation and user feedback collection, the core KPI is customer price and transaction number.

In the course of actual combat, we find that the service quality of customer service is far greater than the help of facilitating transactions. In fact, it is much more difficult to understand that a person who does not want to buy things is much more difficult to buy than a user who buys something. So the price of passenger service is better than that of KPI in terms of number of transactions. This will help enhance the enthusiasm of customer service teams.

D: Technical Director: responsible for developing and maintaining B2C front desk system, and its KPI is scored anonymously by the top three directors.

There should be no doubt about this. As a support team, it is naturally scored by the support team.

Because time is in a hurry, this article is written in more detail, first issued for everyone to brick, it is also what is thrown, and will slowly expand this article, hoping to really cover some of the essence of B2C, ha ha.