A double-edged sword of the electric dealer

Shijuan

The era of online free shipping is ending.

After last year Jingdong mall, new eggs China to raise the "free shipping" threshold, the Amazon China recently issued a notice that consumers need to buy more than 29 yuan and their designated products, can enjoy free shipping. The change has once again pushed the spotlight on the issue of "whether there will be a free dinner for the manufacturers". In spite of last year's Jingdong mall raise the free shipping threshold, Amazon China President Wang Hanwa also high-profile claims that as a "customer-centric" company, will continue to adhere to the free shipping policy, and no amount of shopping and distribution area restrictions.

However, the removal of the "free shipping" measures in the Amazon China is not without warning. Earlier, Wang Hanwa has said that although free logistics costs to consumers a good online experience, but free shipping is only applicable to the development of E-commerce in China's primary stage, "as the E-commerce industry matures, free shipping will likely become a history."

The domestic "free shipping" activity was first launched by the Amazon's predecessor, Excellence Network in 2007, but after 16 months of insistence, the final announcement ended. However, then, including excellence in Amazon, Dangdang, Jingdong Mall and all the goods, such as customer Prudential, but have joined the free Shipping Corps, a time "free shipping" almost become the electric business industry "standard".

The temptation of "free shipping" to consumers cannot be neglected. In its latest report, the research institute, comscore, says 47% of respondents said they would give up the goods in their shopping carts if they did not have the freight.

However, "free shipping" is a double-edged sword for the consumer, which attracts consumers to expand their market share while increasing the operating costs of the enterprise, and the cost of distribution as the hard costs of the company, a very test of the cash flow of a website. Moreover, it is worth mentioning that the overall business of the industry is generally not high margin. According to billion state power network survey, the 3C industry is generally around 5% gross margin, the mobile phone industry is generally around 3%, cosmetics industry in 10%-15%, clothing industry is generally in 15%-20%.

Therefore, as a promotional strategy, free shipping is clearly not a long-term solution. At present, the E-commerce industry is moving towards a monetary tightening era, coupled with the cost of consumer marketing and the increase in the cost of personnel, in the long run, the consumer Web site will be burdened with heavy cost pressure, will eventually directly affect the user's satisfaction. With the end of the era of electronic business, the electric business bosses are looking for ways to cut expenditure, and the abolition of "free shipping" is a hidden price increase, reduce the cost of a means.

Of course, some of the dealers still adhere to the free shipping policy, such as Lok Tao, Suning easy to buy, Gome Online mall, Bowser Network and a good buy, and so on, they or fear because of the cessation of concessions in the market competition in the loss of users, or hope to borrow the basis of the early logistics construction in the market competition to maintain the advantage. Su Ning easy to buy general manager Li Bin, the Amazon, such as exempt from the whole package of mail service is a kind of self-preservation, but also for its future profits to make the bedding. However, the 2012 value war is the key to leading the development of E-commerce industry, and will become the leader of the future market. Suning Strong logistics Backstage support is the basis of Su Ning easy to buy confidence. It is expected that by 2013, the exclusive Suning easy to buy 10 automated warehouses will be put into use, suning easy to buy a dedicated user experience Center can be combined with more than 1700 stores, at the same time, more than 3,000 service outlets have also made it easy to buy Su Ning to become a point of preparation.

However, the core and essence of any business is "profit", the continued non-profit only rely on "picture pie" is not the long-term driving force of development, in the transformation of the adjustment period of the business operators need rational development.