"Free lunch" no longer, electricity dealers may turn to service warfare

Source: Internet
Author: User
Keywords Electrical business

"Last month from the excellent Amazon buy things still do not charge freight, how to charge 5 yuan freight now?" 8th, from the excellent purchase of a picture of the story to the son of Chen to the Economic Herald reporter complained, she found in the payment, to a book less than 29 yuan to pay 5 Yuan Express fee.

So far, after last year Jingdong Mall, the new Egg China and other E-commerce Enterprises announced the collection of freight, the last one advertised "free shipping" of the large enterprise of the Amazon China also failed to hold. It is understood that the Amazon China has recently officially announced that consumers need to purchase 29 yuan or buy their designated goods, can enjoy free shipping, orders less than 29 yuan to pay 5 yuan of freight.

"Free Lunch" is no longer

In recent years, under the fierce competition environment, the "free shipping" policy has been an important weight for e-commerce websites to attract customers and enhance their competitive advantages. Domestic "free shipping" activities were first and foremost by the predecessor of the Amazon ——— Network of Excellence launched in 2007, and then Dangdang, Jingdong Mall and a number of customer-prudential products, such as many electric dealers have joined the free Shipping Corps.

But at the end of November last year, the direction of free shipping for electric dealers began to change. Jingdong Mall is the first to adjust logistics strategy, less than 39 yuan orders charged 5 yuan freight. New Egg China immediately thereafter announced the implementation of a new logistics policy since December 31, 2011, the abolition of the "free Shipping" rule, Beijing, Shanghai, such as the use of its own logistics in the city less than 99 yuan in orders to collect 4.5 yuan distribution fee. Dangdang had already begun to implement the policy of 29 yuan to free shipping as early as 2010.

Does this mean that the electricity business industry is generally under huge cost pressures and is beginning to consider reducing costs? In this regard, Analysys international analyst Shou sent to believe that the electricity business is no longer free shipping is a disguised price increases, the move can control the number of Low-cost orders, so that the spread of each order, operation cost reduction, in order to improve the gross margin.

Shou sent analysis said that for E-commerce sites, 29 yuan below the order, a large part of the book products and small electronic products, fashion brand products. The average customer price of the book is 25 yuan, gross margin of about 15%-20%. This means that every time a book is sent, gross profit is only 5 yuan. and small electronic product gross margin is only about 5%.

However, warehousing logistics costs are calculated according to each package, and the customer unit price does not have much relationship. In this way, the customer's low unit order, the point of the electric dealer's gross margin will ultimately contribute to the logistics company. For the price less than 29 yuan order, the gross profit is almost swallowed up by courier fees, therefore, the price is less than 29 yuan orders more, the loss of the electric business is greater. In recent years, the domestic express industry 6 collective price increases, so that the logistics costs are increasingly becoming one of the costs can not be ignored.

Turn to service warfare

"Free shipping is a signal, which indicates that in the future the core of E-commerce industry competition will be transformed into operational management and technological innovation." "8th, China Logistics and Supply Chain Management Alliance director Huanggang in an interview with the Herald reporter, said this reflects the whole industry from the rapid expansion period to the rational contraction period or callback period, the electricity quotient will pay more attention to satisfy the consumer individual demand, thus gradually replaces the vicious price competition, this will become the electronic commerce healthy development inevitable trend.

For the electrical business, free shipping policy cancellation, the first to overcome the current level of logistics services are facing low levels of quality assurance, such as the development of obstacles. Herald reporter learned that the Amazon China 2nd officially launched in China's 11th Operation Center, to provide better logistics services; Jingdong Mall has been in 183 cities to achieve proprietary distribution, to provide door-to-door, payment, POS machine card and after-sale door-to-door service, and in 22 cities opened "211 Limited" service, Its own logistics and distribution volume accounted for 70%.

"To avoid the pure price-oriented trend, by building the core competitiveness of e-commerce sites to meet the personalized needs of consumers, E-commerce industry has become the inevitable trend of future development." E-commerce Enterprise personalized service upgrade, not only will allow more consumers to meet the needs, but also will promote e-commerce industry out of the mire of price war, and gradually enter the path of healthy development. "Lvben, deputy dean of the Institute of Management, internet expert, said.

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