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    Taobao Mall No Longer Needs Small And Medium-Sized Sellers

    2011/11/19 9:38:00 19

    To improve platform credit and supervise illegal sellers, in October 10th, Taobao Shopping Mall Promulgated a series of new regulations, triggering thousands of small and medium-sized sellers dissatisfaction, they gathered together, Taobao store brand seller malicious auction, seriously affected the Taobao mall normal. Operate 。


    Taobao mall issued new regulations, some people think it is to raise funds to buy YAHOO, some people think it is simply to optimize the financial statements, in order to impact IPO, some people think it is to optimize the mall credit system. In my view, the intention of Taobao mall transformation is obvious, and the marginalization of small and medium sellers is the key to strategic transformation.


    In China, due to regional and investment oriented industries, the concentration level is far less than that of Europe and the United States. Country The most representative department store industry is mainly investment oriented. Department stores do not have basic functions of purchasing, logistics and other supply chains. This means that the supply chain base of domestic chain industries is not strong. Apart from a small number of companies such as Suning, Gome and BELLE, which are dominant in the supply chain, have the power to develop e-commerce business. Many traditional fields of e-commerce have huge market space, providing a good opportunity for the transformation of Taobao mall.


    In fact, from the end of last year, Taobao mall has been increasing its investment in traditional brands. Under the tilt of resources such as investment promotion, logistics and other resources in Taobao mall, the clothing business of Taobao mall has occupied nearly 40% of the total scale of the mall, almost monopolizing the e-commerce channel of the domestic garment industry, and the traditional clothing brand wants to build its own e-commerce business very difficultly. Against this background, Taobao mall continues to expand in the fields of cosmetics, home appliances, 3C appliances and so on. It intends to become the first choice for traditional brands to enter e-commerce, and the future of e-commerce channels that control traditional brands will be very large both in terms of overall size and value.


    Compared with the small seller, the brand has the characteristics of small quantity, easy regulation and high credibility. It can enhance the overall value of Taobao mall, and more importantly, because of the greater transaction value (gross profit margin) of the brand. The small and medium-sized sellers, because the supply chain does not have an advantage, so the gross margin is relatively low, it is very difficult to have capital to advertise, in the short term will not make use of Taobao's fourth party logistics, and advertising revenue is now the first big income of Taobao mall, the fourth party logistics is Taobao's strategic core. Even if the scale of the same transaction is, the profit contribution of the brand to the Taobao mall is more than two times that of the small and medium-sized sellers. Not only from the scale development, but also the profit contribution, the Taobao mall takes the brand resources more seriously.


    In addition to branding, Taobao mall will also accept a large number of well-known B2C e-commerce enterprises such as shop No. 1 and Coba network, and establish an open platform for B2C business, which further determines the fate of small and medium-sized sellers on the platform. B2C e-commerce companies have more advantages in gross margin, supply chain, quality control, sales scale and product category. They can not only replace the advantage of small and medium sellers in the long tail products, but also enhance the platform value and gain larger transaction scale and profit. For Taobao mall, the dual track development path of brand and B2C open platform is the inevitable trend of maximizing its value.


    Therefore, the transformation of Taobao mall is a brand transformation. The transformation of the B2C open platform will upgrade the quality and reputation from the brand and B2C open platform, gain more profit space, and better control the upstream traditional brands and B2C companies, so as to control the e-commerce business facing end users.


    In fact, tens of thousands of small and medium-sized sellers are always the unstable factors of Taobao mall and the main group of complaints. This has brought obstacles to the sustainable development of Taobao mall and IPO. From this point of view, whether or not to clean up small sellers, improve overall quality and reduce complaint rate has become the only way for Taobao mall.


    Under the heavy pressure, the new regulations of Taobao mall will be moderately compromised, but the brand of Taobao mall and the opening of the B2C have become a conclusion. On the one hand, Taobao will introduce a relatively stringent quality control policy to control the behavior of small and medium-sized sellers. On the other hand, brands and B2C enterprises will continue to enter, and the future survival of small and medium-sized sellers will be further narrowed.


    From the perspective of profit contribution rate, strategic position and development trend, Taobao mall has become the core of the Alibaba system. For the overall value of Taobao mall, the value system of high quality and high reputation is very important, which is critical to the overall IPO value evaluation. As soon as possible, Taobao mall's branding and B2C open platform transformation will be built into a high value e-commerce ecosystem and quality improvement. It is the most important step for Ma Yun to solve the problem of fake and shoddy and other bad trading as soon as possible, and to improve the income and profit prospects.


    But what should a small and medium-sized legal seller do?

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