Group Buying Network Hidden Rules: Exhaustion Means To Exploit In Disguise

The group buying industry, which is in a contraction period, began to balance its profit and loss with "drinking poison to quench thirst".

Following the exposure of the group's "acquisition" merchants, they received a number of businesses that claimed that the group buying site that charged "enter fees" was far more than the group Bao network.

"Fair and aboveboard" entry fee

Group buying website charges "entry fee" has now become a "code of conduct".

According to insiders, at least half of the top 10-15 group buying enterprises will collect "on board fees" on some items.

Yesterday, a group purchase

The "entrance fee" has been charging more and more widely and the price is also improving.

Prior to this, group buying projects generally cost 2000-5000 yuan, but yesterday, a businessman revealed that a large group buying company held "special group buying" activities during Christmas and new year's day, and the "special fee" price was as high as six digits.

The head of a garment factory in Jiangsu told reporters that the factory selected 8 garments to participate in the above "special group buying" activities, which required a total of 50 thousand yuan in the special fee and 12% sales as a commission after the paction.

50 thousand yuan is only moderate price, and some "special fee" is as high as 100 thousand yuan.

Even if a high "special fee" is surrendered, businesses will not get high returns.

For example, a brand of men's clothing has 18 items on the line, and the average price per unit of the 18 goods is 129.4 yuan. The average sales volume is only 16.5, and the sales volume is only 2000 yuan, less than the amount of the "special fee".

The head of the men's clothing brand said that sales volume would be hard to "get back to Ben".

Use all means to exploit in disguise

In addition to the "aboveboard" fees, "special fees", there are group buying sites secretly disguised charges, the amount even higher than the normal price charged.

A shoe and hat business in Zhejiang says that the group buying website requires merchants to "brush their bills" on their own, thus charging in disguise, and at the same time borrowing the fake hand of businessmen to join the group.

Reporters learned that a group of "sales guide" as the slogan of the group buying website sales staff, "need to ensure sales" as the reason, require businesses to buy their own group products, through the "brush" to create a false appearance of products.

A businessman said that the first day of the website must reach 1000 orders or 60 thousand yuan sales, and the less part is made up by the merchants themselves.

He had "brushed" nearly 50 thousand yuan on the website, because the contract stipulates that the group buying website needs to be pumped up to 10%, so he was charged with nearly 5000 yuan in the disguised form.

Group buying profit model urgently needs innovation

Because the profit of group buying commodity is not high, after paying "special fee", "rack fee" and all kinds of piecemeal expenses, businesses frankly say that it is impossible to balance profits and losses.

"Group buying is too much impact on the physical store, and sales of our physical stores and even Taobao stores have declined, with a large backlog of stocks."

The above men's clothing brand responsible person said that many manufacturers are facing the end of the year clearance, competing to participate in group buying requires "quantity", group buying website "special fee" also rises.

Insiders believe that Internet operators should have their own profit models, such as relying on price advantage, product innovation, technological innovation and irreplaceable service value-added to achieve profitability.

The head of a group buying enterprise in Beijing said yesterday that the biggest feature of group buying compared with other e-commerce enterprises is "light", so there is not much marketing cost.

"Now many group buying enterprises are burning money, which is unhealthy."

He also said that the burning of money pferred to businesses or customers, thereby reducing operating costs, may form a vicious circle.

The head of a B2C e-commerce enterprise believes that the new e-commerce channels should not have all kinds of expenses, such as entry fee, promotion fee and so on. In the course of development, e-commerce enterprises should combine with the needs of consumers, and consider avoiding the repetition of the industry dilemma of department stores in many ways.