Network Marketing and other seven measures to promote the development of electronic commerce in home industry

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According to industry experts predict, China's e-commerce development is very fast, in the future few, E-commerce industry will be a blowout-type development. In this market prospect, the CEO Deng Huaqin of the Shanghai Group Purchase network has summed up seven measures according to its own successful experience in many years.

Development of e-commerce at home and abroad

Before we talk about how to develop E-commerce, we first look at the development of E-commerce at home and abroad. In foreign countries, the first type of e-commerce enterprises on behalf of ebay, this is very similar to Taobao in China; the second category is a purely technology-oriented e-business enterprise represented by Amazon, a few years ago, when ebay's profits were staggering, and Amazon was losing money, but its online orders surged since 2007, when Amazon announced it was starting to make a profit. , there's data showing Amazon's orders are 4 million a day, is the world's largest E-commerce enterprise, the third category is the United States, the company as the representative of the professional vertical E-commerce Enterprises, Home Depot to operate building materials home products, there are many traditional stores, while focusing on vertical class E-commerce, More than 20% of its turnover is generated through online sales.

The development of domestic e-commerce is the beginning of schools of contention, but after 2000 years of financial bubbles, the survival of only Dangdang and Ctrip, such as a small number of enterprises. These two enterprises are very different, Dangdang is a pure technology-oriented e-commerce enterprise, so far has not begun to profit, and Ctrip focus on making products and provide value-added services, not only profitable, but now the stock market value has reached more than 7 billion U.S. dollars. Users landing Dangdang, the purpose of the purchase of cheap goods, and Ctrip ticket prices and hotel prices and other similar sites, and no significant advantages, many users are Ctrip special services to attract the past. Ctrip only define air ticket users, hotel users and holiday products users, the Internet and users alike, so Ctrip call center is very large, he has a 5,000-person scale call center, it is also reported in Nantong to open a tens of thousands of-person scale call center, The scale of the call center helps Ctrip to provide customers with quality and meticulous service. This gives us the revelation that the core of E-commerce is to do business, not just focus on the electronic network platform.

As home E-commerce leading enterprises, we can take the following measures to promote the development of e-commerce in the home industry.

E-commerce should innovate in service flow and order mode

E-commerce industry to promote innovation, there are already suppliers to try to carry out some innovation, but mostly stay in the slogan, such as the proposed Shanghai group purchase Network "Seven days no reason to return" and so on. In fact, we need to make some innovations in the service flow and order mode. such as Ctrip electronic ticket, the performance of the pull effect is very obvious. Jing Dong Network also has a lot of advanced experience to learn from, such as Jingdong Net front-end user experience to do very well. The same notebook computer product introduction, other websites may only introduce the product performance and the price, but Jingdong single introduction, will specifically introduce this laptop suitable for which type of users, there will be a lot of comments on this laptop computer, and floating in the above comments, is the Jing Dong network optimized users really care about the comments, Jing Dong Network also has a lot of advice about this kind of laptop computer. In particular, the consultation and comment on their respective roles, the advisory generally promote users how to buy things, buy these things to pay attention to what aspect, and the comments prompted users to buy products. Through the Jing Dong Network user Experience function, we can see the difference between the electronic commerce and the traditional business lies in, the electronic commerce may the other user buys the product the experience to comment and the information way manifests, this is completely relies on the salesman to promote the user to buy the traditional store cannot do. Jing Dong net of the back end also do very well, for example, in the delivery speed, Jing Dong net can do this today, this benefit from the Beijing-East network flexible use of two types of inventory: its own real and factory virtual inventory. In addition to the Beijing-East such vertical-type Web site, there is a foothold in the apparel industry where the customer prudential products. Since 2007, where the customer-prudential products with the opportunity to use E-commerce, profit in exchange for space and visibility, Sina and other websites to advertise, in the short term visibility quickly rise. This gives us the Enlightenment is to take the road of innovative network marketing.

Improve order conversion rate by means of system software and breakthrough routine

Unlike the site mentioned earlier, many of the products we sell are custom-made rather than standard, leading to a large number of items and a strong geographical color. There are a lot of suppliers that want to open up a distant market, but the demand for geographical services is very high, since it is difficult to expand the market to inland provinces in the short term, we should consider how to improve the existing order conversion rate. We have introduced a new Vendor sales service management system to help suppliers ensure that orders are not lost through a systematic approach. Completely rely on manual dispatch, the order is likely because of the orders of the customer service staff in the dispatch of the day of temporary leave, unable to carry out orders and loss, but the system is stable, will be in the delivery day to remind suppliers to deliver.

We will also systematize the supplier as part of our systematized core. We have a strategic partnership with a software company to facilitate the systematization of the background. We now shop backstage, can only see how many orders, but can not manage orders. When the new system is online, suppliers can analyze the data according to the order, the system can automatically remind the order execution, and can optimize the data, such as at any time to see how much sales of promotional products, now produce sales of the proportion of the total number of goods, inventory sales and sales ratio is how much. In addition, there are some more important data, the order conversion rate is very important, online shop order conversion rate refers to the amount of browsing a day, which produced a number of orders, shop to improve the conversion rate there are two methods, the 1th is to increase the number of browsing, the 2nd is to improve conversion rate. When the conversion rate increases, it shows that the supplier's work is fruitful. Our industry, always hope that consumers will be easier to decorate, I hope they can buy cheaper and more suitable products, there are more categories to choose from. So we set up a 300-seat call center, also launched two new services: Decoration assistants and decoration housekeeper. Suppliers can borrow seats from us if they want to increase the order conversion rate. We also made some changes to the home page this year, hope that the order can be transformed through the line and the final completion of the home page after the revision effect is significant, our mall this March traffic, compared with last January, the flow is nearly doubled, orders are nearly doubled.

Many suppliers have formed a customer service team, hoping to improve the order conversion rate, but sometimes in accordance with conventional methods to do very little, such as customer service like to use the phone to follow orders, so often less. In fact, some users are accustomed to answering the phone, some users like to send a message or send messages, so to understand the user's habits, based on the choice of the way users like to follow orders. E-commerce does not operate as regularly as traditional stores. According to our statistics, we find that the highest time period of order is between eight o'clock in the evening and 10 o'clock in the evening. Some businesses found this feature, specifically arranged for a customer service during this period of time on duty. Some users will be online at the same time under two different brands of orders, who reacted quickly to the final order to determine to whom, so to improve the order conversion rate needs to adjust the customer service schedule.

E-commerce in the past few years the reason for the rapid development is because payment in China is very troublesome, but since Taobao launched Alipay business, E-commerce began to develop rapidly. At present we also opened the online payment platform, suppliers should think more about how to use a good online payment platform. Imagine that if a user confirms an order, the supplier calls the customer to pay the full payment, and the troublesome method of paying may cause the user to give up the order. We invest in the star still shopping network has opened the online payment platform, in view of the current operating situation, 70% of users choose to pay online, 30% of the users choose to pay the goods. The high online payment ratio behind, is that E-commerce has changed the user's payment habits.

Our shop has a "case" function has been online, the supplier to use this function, can promote the order conversion rate. Consumers to the shop, looked at the consultation, comments, but also want to see the effect of others after the installation, people's evaluation of how, the case inside will speak their own experience and mood. The supplier should encourage the user to shoot the entire installation process and experience feeling, put into the "case" link of the shop, do not always send these content in the forum, because the forum post is apt to sink down.

E-commerce should pay attention to word-of-mouth marketing, and actively launch star products and core products

Word-of-mouth is one of the core competitiveness of electronic commerce. QI Home Forum, the highest volume of traffic and the highest number of posts is the decoration diary, decoration Diary of high Flow and high post volume reflects the user's consumption mentality. Users will look at the decoration before decoration diary, there are netizens to introduce how to choose the decoration company, how to choose building materials brands. This helps users to screen out satisfactory decoration companies and building materials brands. In the formal order, the user will be very concerned about Qi Home Mall, the user in the shop is the most concerned about the brand's Word-of-mouth, comments, advice and complaints. This gives us the Enlightenment is to do a good word of mouth, and related to the comments and consultation, properly handle user complaints.

Star products and core products are important means to promote sales. At present, many of our suppliers of online shop, lack of bright spots and hotspots. And the supplier in the traditional store promotion, has formed the push star product and the core product custom. So in the shop, we should also identify the star products and core products. Star products and core products are very different, star products to attract customers with low prices to look at, pull the brand of other products sales, you can often change the category. The core product is a series of products of the enterprise, mainly produce large volume sales. Therefore, we should pay attention to the core product is not enough product inventory, whether there is a related product trading strategy, there is no supporting sales products, in short, to focus on E-commerce core products to do a series of packaging.

Open up a new distribution system through the Internet

2009, the overall performance of the home industry is very good, many suppliers would like to certainly expect 2010 and 2011 will be better, so all focus on grabbing orders. But note that all prosperity is fraught with crises, and all crises are a new beginning. Behind the prosperity created by the price war, the market is questioning the low price, and the lower price line cannot achieve the sustainable development of sales. When the market transformation, we should focus on improving the core competitiveness, the core competitiveness is the distribution system. Domestic industry supply chain management efficiency is low, the various cost is very high, the channel is very long. For example, to open a new store, the headquarters will be very concerned about the location of the store, and how many areas can be covered. The U.S. National Treasure Company, from manufacturers to retail terminals do not need to rely on geographical coverage to seize the market, this is because the electronic commerce is boundless, the system is beyond the boundaries. We can find a whole new distribution system through the Internet, in short, the manufacturer can find his regional distributors as quickly as possible. Alibaba announced March 9, Alibaba Wholesale Network (1688.com) on-line, 1688 platform positioning is the world's largest online procurement wholesale market, this platform will help the entity factory, brand, first-class wholesalers to introduce a large number of buyers, including the hundreds of thousands of-level Taobao shop dispensers, Millions's offline city entity owner, Tens's existing wholesale market buyer, offers a range of trading tools and services. Alibaba Wholesale network of regional distribution ideas worthy of our reference.

Optimize supply chain by choosing logistics company

Suppliers in the delivery, must be in a number of logistics companies to screen, if the logistics business package to a company is not conducive to optimizing the supply chain. If the supplier requires logistics company Safety First, we can choose this kind of logistics company backstage, then continue to select according to the reputation ranking. In addition, logistics companies have different, such as spring Festival when some logistics companies do not work, some logistics companies can continue to send during the Spring Festival, suppliers in the selection of logistics companies should pay special attention to ensure that the goods are delivered to the user in time. Sometimes, logistics companies are even related to the fate of the enterprise. For example, in 2009, a logistics company's failure causes many enterprises to produce the loss, this is because in the electronic commerce domain, the consumer likes to choose the goods to pay, the logistics company collection payment is very common, the payment's operation cycle is usually two months, if the logistics company closes, means the enterprise's payment cannot reclaim and produces the loss. Because logistics companies play a very important role in the supply chain, we will negotiate with many logistics companies to introduce good logistics companies to optimize the supply chain.

Through the system to strengthen storage management for throttling

Many vendors in the product warehousing out of the library, does not make warehousing orders and out of the library, the warehouse also has no optimization plan, the most important thing is that the warehouse data never into the report, which makes the profit unconsciously in a large number of loss. Suppose that there are 2000 single items in the warehouse, usually 20% of the single goods in sales, 80% of the single product is not in sales, which means that 80% single goods in vain in the warehouse stacking but not generate sales. As the supplier of retail business knows, "a single product is not displayed, never sold." "Suppliers to statistics, how many products in the warehouse is not in the shop shelves, if not shelves more than 20% of the total number of items, it will certainly lose sales." There are some products that, despite the shelves, are hard to produce, either priced too high or the product is not in place. Most sadly, there are still many sales can never generate profits, such as many people place orders, but the warehouse never this product, the shortage rate is very high. The problems listed above are the solutions of our newly developed supplier Sales service management system. There are only two ways for entrepreneurs to earn more profit: Open source and throttling. Money is saved, save money depends on the system to do.

The talent strategy of e-commerce

E-commerce is different from the traditional stores, as long as the recruitment of a glib salesperson can lead to sales, he needs a variety of talents to fight together. To do a good job in E-commerce, the supplier of the shop needs excellent with single personnel to track orders, the need for professional shop decoration staff to produce wonderful single product display to attract consumers, need photographers to take beautiful product pictures, the need for art in the photographer on the basis of PS to make excellent product pictures, Need to edit the key words to optimize the single product to improve the probability of being searched. In addition, the supplier's entity warehouse, also need to have two warehouse personnel to do inspection and review work, professional logistics personnel also indispensable. Of course, suppliers can consider the development of complex talent, so that there are several job functions, we can provide relevant training.

Building Materials Home E-commerce field will be the birth of a series of excellent brands

The future of E-commerce is good, the key to seize the opportunity is not in every subdivision, such as in the field of system management, marketing, distribution, supply chain management, warehousing and talent strategy, has unparalleled competitiveness. I believe that the future rely on E-commerce platform, building materials in the home industry will be the birth of a series of excellent brands.