The inside of the cosmetics electric business: purchasing cost accounted for 80%

Tencent Science and technology news June 12, cosmetics retail has been regarded as a higher gross margin of the vertical industry, which also attracted a large number of electric business entrepreneurs. Recently, the domestic cosmetics to the Bee Network CEO Wang Licheng on the cosmetics in the cost, procurement, after-sale compensation and other related issues for entrepreneurs to do the answer.

Cost

Le Bee Network said, in order to do the scale, cosmetics dealers generally use the cost pricing method, to purchase costs plus a maintenance of business operations of the necessary gross margin as the basic standard of retail prices.

Cosmetics Online purchase price advantage is mainly for offline entity stores, the standard among the electrical business, individual products for strategic sales are some, but generally, as long as the operating is authentic, can do the price limit is very close. The term "net-minimum" is illogical.

It was disclosed that the direct cost of cosmetics products procurement accounted for about 70%-80%; operating costs accounted for 5% to 6%, including administrative general services, payroll, technology, performance costs accounted for 12%-20%, including the entire storage and logistics delivery costs, in addition, there is the most flexible market promotion costs, Mature electric dealers Under normal circumstances between 3%-6%, the promotion period of the electricity quotient, may be up to 10%-15%.

Le Bee Network, that is, 22%-30% 's gross profit margin is often standardized operation of authentic electrical business profit and loss range, combined with direct procurement costs, counter price of about 70 percent, is about the lower limit of authentic cosmetics electrical products. However, in order to attract customers, it is not in the market for some products to be marketed in a strategic and unprofitable setting.

Procurement

General formal cosmetics distributor procurement channels are divided into three categories: first, with the manufacturer or regional agents, such as a unit procurement, by the upstream supply channels, the price will be relatively low; second, from the intermediary procurement, middlemen from all formal channels receive goods, and then transferred to the electricity supplier, Intermediaries provide invoices or other valid vouchers issued by regular channels the supplier confirms that the purchased product is authentic; third, distributor procurement, procurement in some brands of level two or level three distributors.

But for the Distributor procurement method, its cost price is often relatively high, it is difficult to meet the pricing system, so generally only as a supplementary choice.

Le Bee Network said, by virtue of the bulk procurement capacity in the upstream channel low price purchase, without distribution, direct retail, it is the formal cosmetics dealers can achieve low-cost sales of authentic "business". General manufacturers will deliberately control the number of products to the electricity quotient, to avoid the real store to form too much impact, but the traditional distribution channels are complex, manufacturers are difficult to control the flow of products, and the current share of cosmetics online only accounted for less than 5% of the market, it is clear that the real store is not enough to form a true threat.

In addition, the Lok Bee Network believes that the electric business channel for manufacturers to adjust product structure, management inventory also has a positive role.

Compensation

In the cosmetics electric dealer's fake compensation, such as "Fake N compensate N" This common promise, by WHO to testify is a big problem.

Le Bee Network said that the authenticity of cosmetics to identify the non-professional organizations can not, most consumers will not be for a commodity to find a professional body issued a test report, if the demand for consumer evidence, then this commitment has become empty talk; There is no reason to return the period: on the one hand to the consumer is long enough, enough consumers to fully experience, Determine the suitability of the product.

On the other hand, is the delivery time or the receipt time? This is a few days. Furthermore, there are other return conditions, such as good packaging, no use, and so on. There are overdue delivery of the commitment to pay the time standard settings, is the normal delivery time, or the merchant set by the great relaxation time is the norm? There is a big difference between the two.

Le Bee network, that an electric dealer in the trust of consumers, for the sake of consumers attitude, without any obstacles to the implementation of the commitment to consumers, can reflect their own products and services from the side of confidence. If the product is quality and quantity of authentic, service and in place, there is no need to set up any barriers to protection.