The king of the Platform of the Business-to-consumer

A loud bang, Cool day with Pipa debut, China's electric business is about to stage the U.S. armed attack on the Bay of Pigs in Cuba incident. On the first day of the line, the home page is not all brush, to wait about 10 seconds, Ui/ue is not in line with the use of Chinese habits, Web site features a lot of mistakes, a look is rushed online, and the merchant also did not see any bright spot, and obviously not ready. After half a month and pay attention to the next, more fun: Web site traffic daily average PV tens of thousands of (mostly still industry people to see), a Amoy brand big business almost no orders, the home page open or so slow, do not see any promotional action, Business Basic no big name, let me think of when the store, These businesses may find it hard to support a rapid rise in a platform, especially with a mature platform. Because the work needs, these 1.5 to see the platform model, by the Le cool Sky line, compare the next several domestic and foreign B2B2C platform model, and analyze the B2B2C platform of Wang Amazon's successful shape.

Foreign B2B2C Platform:

AMAZON MARKETPLACE:AMZN in a summary of the 1999 launch of the auctions and Zshops failure experience (with ebay spell C sellers, imitators die, breaking up), in 2001 launched a Third-party seller platform, to B sellers mainly, with B sellers to drive C sellers , the direct competition with ebay, to achieve great success. Now AMZN Marketplace's GMV is equivalent to 30% of AMZN's proprietary sales, and 2 million sellers are expected to create more than $10 billion trillion in turnover this year.

Lotte/gamrket/auction/11st/pchome store/Yahoo: Asia Japan and South Korea China Taiwan's B2B2C model, of which the Japanese Lotte platform nearly 40,000 sellers this year will create more than 80 billion RMB turnover; and South Korea gmarket/ AUCTION (acquired by ebay) and SK's 11ST occupy nearly 90% of the South Korean open Makrket market (60 billion RMB); one of the biggest companies in Taiwan, China, PChome, launched in 2005 PChome Store Shop Street 8000 sellers a year's turnover of nearly 400 million RMB, the second Yahoo and third of the Taiwan Lotte left behind.

Domestic B2B2C Platform:

Taobao Mall: Taobao Consumer-to-consumer platform based on the construction of the mall, equivalent to open in the market in the shopping MALL, the advantage is a large volume of users and transactions, the first crowd of all the vertical city, the disadvantage is that the merchant academics, the goods are uneven, the user quality is not high, business promotion costs high, price PK fierce.

When store/Cool day: All settled businesses are qualified enterprises, Taobao as a whole more than the overall strength of the merchant, and Taobao mall similar, the advantage is that the merchant than Taobao relatively guaranteed, the user quality is relatively higher than Taobao;

QQ Mall: Service QQ member of high-end platform, only one or two line brand or brand of online authorized agent stationed, the advantage is a large number of QQ member users and the best quality of the top business; inferior brand less merchandise, relying only on QQ resource needle service QQ members, weak external influence.

BEIJING-East open platform: Investment object for the brand and have the strength of the line under the online retailer, Advantage is a large number of high-quality business, do not hurt the brand, not PK Price, combined with the business to provide Beijing-East logistics and other value-added services so that users get the same shopping experience with Jingdong, the best quality user base; The disadvantage is the balance relationship with proprietary purchasing, Less than Taobao's number of users and trading volume.

Excellence Marketplace: In preparation, is expected to launch next year, the platform is responsible for the former Chinese Taiwan Yahoo Hong General Manager, I believe the basic copy AMZN marketplace, and after the launch of FBA services. The advantage is AMZN mature platform model (technology/algorithm/rules/Operations) and logistics services, the disadvantage is the same as the balance between the purchase of proprietary, lower than Jingdong and when a lot of traffic, order volume and visibility.

The foundation of AMZN platform success

Here we analyze the different practices of both the positive (Amazon) and the inverse (Dangdang/cool days):

1. User volume and Category: large enough user base to support a large number of businesses and merchandise sales on the platform, consumer to do the platform, must be their own first to cultivate a large number of user groups, the mass of users to share to third-party businesses, the more attractive quality merchants, in turn, the platform will be more valuable, to meet the different needs of more users. Amazon already has tens of millions of users in its platform business, while Dangdang has only millions of users in its store business. At the same time, the product is also so, AMZN side has opened up the category to share to other businesses, while the active and third-party businesses together to open up more categories, self-management and joint venture of benign competition, so that the AMZN platform in each category have enough depth and competitiveness, And when it is not good at the department store and 3C category to the third party vendors, and then some of the category did a good job when the adjustment to the category back to self.

2. Equal quality: Amazon's first consumer-to-consumer auction business auctions and Zshops (relying on ebay big sellers) failed to wake up after the failure to launch platform business is the first choice for a large number of good goods and good service of large and medium-sized line under the online retailer and brand, Because these businesses can achieve the same level of service as Amazon, until today these businesses are also the mainstay of the Amazon platform (the United States TOP500 78 of the company's business in the Amazon shop, on ebay shop only 25), although the late gradually open the threshold of entry, But through the management and monitoring mechanism to strictly screen the elimination, goods and services are not good business quickly evicted from the platform or system to reduce the display of opportunities and sorting, it is difficult to survive on the platform, and Dangdang shop in the shop when the online pull a lot of Taobao big sellers, do not get up after the transformation of business sellers, but basically are small and medium-sized enterprises, Now Dangdang's platform for the completion rate of more than half of the order, after the survey found that users generally questioned the strength of the business; Le cool day also so, are small and Taobao big sellers, do not see a brand and large online/offline retailer, some brand stores in fact just brand dealers (not the most core) in the operation.

3. Fair competition: is treats the merchant the attitude, Amzn insists equally, the associate merchant and the commodity and the AMZN purchase commodity obtains the same display opportunity and the exposure degree, in the station search listing page, the display rule default merchant is to take the comprehensive advantage, but not necessarily is the proprietary commodity, In each commodity (regardless of the proprietary pool) there are associated merchant commodity prices and imports, home/channel page resources are equally distributed open to the joint venture, at the same time in the treatment of joint ventures, not because of the size of the joint venture to provide differentiated services, but according to the type of merchant choice and fees to provide trust services, Also does not affect search ranking, recommended frequency and results, other resources distribution (not to the size of the merchant but will be differentiated by the quality of the merchant), of course, this is based on the platform on the premise of the overall quality of business, and the fake and infringement of the severe blow to ensure the fairness of competition While Dangdang in order to ensure that the growth of purchasing sales of the majority of the resources are allocated to the self-employed goods, so that the joint merchandise is not enough to show exposure, the turnover has been not to go, the joint venture companies continue to withdraw, successively in charge of the joint venture of several vice presidents and directors have left.

3.SPU:AMZN product display is the SPU model, highlighting the commodity and relatively dilute the business, this is because of the mainland countries and the quality of the business is uneven, the phenomenon of serious commodity homogeneity, in this case, for the user's shopping experience, to the commodity for the unit aggregation business, both for the user to find, And through the system to make goods and services the best businesses in front, allow users to buy the best products, but also effectively motivate businesses to provide better goods/services efforts, and powerful black box algorithm: SPU row in front of the recommended seller area (by sales/user Rating/AMZN contribution degree, etc. multidimensional calculation), In other words, the higher the quality of the business opportunities to show more. More subtle is also randomly put some new businesses to recommend, but also let new businesses occasionally hot, not to AMZN platform lost confidence, and Le Cool day inherits the tradition of Rakuten: Highlight the business and relatively dilute the merchandise. Rakuten in Japan to do so is reasonable: small local businesses and a lot of regional characteristics of businesses, the overall quality of the business is better service awareness, commodity differentiation characteristics of heterogeneous, but copied to the domestic will encounter problems.

4. Provision of open and supporting infrastructure, Amazon provides business with a range of third-party services including logistics, construction stations/systems, marketing, Cloud, OPEN APIs, and so on, allowing businesses to use Amazon's powerful resources to provide users with the best value for their services, which is lower than the total cost of their own construction. While Dangdang did not provide any Third-party services outside the platform before last year, their businesses are small and medium-sized businesses, limited service capabilities, resulting in low user satisfaction is not willing to choose; Cool Day also, Taobao as a complete platform, Also realize that not providing value-added services outside the platform can not help the platform business and fully built independent competition, so vigorously develop B logistics, supply chain platform, open platform and TP services, le cool days will meet the future of Taobao face problems. Several representative AMZN business services are specifically described below:

FBA Services: AMZN's third party logistics service, by releasing AMZN powerful redundancy order processing capabilities, handles orders for Third-party merchants Marketplace;powered/webstore by Amzn;ebay platform and other independent sites, Revenues from FBA significantly offset AMZN's huge logistical costs. There are two points to be mentioned: 1. In order to ensure the same quality of service, there is no warehouse platform merchant in the area where the marketplace business is carried out, the AMZN FBA service must be used; 2.AMZN powerful and accurate background report system including sales forecast/replenishment suggestion, etc. It just solves the situation that the merchant put the goods into the Platform warehouse to increase the inventory cost.

Construction Station/system services: Powered by AMZN and webstore by AMZN. The former is a custom outsourced operation for large enterprises, such as Target, which has now basically stalled. The latter face small and medium-sized enterprises, domestic shopex similar, including a key station/commodity/Logistics/Template/seo/sem Management, the United States thousands of small and medium-sized enterprises in the use of this service, and can and AMZN MARKETPLACE/FBA through, very low monthly fee + sales commission, For businesses with online sales of more than 250,000 USD/year.

Marketing services; Although AMZN to platform vendors in the platform services to the same, but the internal and external businesses can buy AMZN ads to increase the additional opportunities: the first home of the ad, search page, Product Details page, order confirmation page, according to the keyword accurate matching, according to the CPC click Charges.

Cloud services: AMZN WEB SERVERS, including storage, computing, arranging, database management and other services, leveraging AMZN's powerful and redundant it capabilities to serve small and medium enterprises and start-ups that are unwilling to take on high it costs, which naturally includes businesses on the marketplace.

Open API: Businesses that use AMZN business services can define targeted development/invocation AMZN open APIs based on their own needs, such as platform Merchant's order output to the merchant's own system processing, and ebay and independent trader order input to FBA.

In short, AMZN business services are very flexible, according to the needs of businesses to build a corresponding match. AMZN Marketplace platform is a healthy and mature ecological chain, and AMZN business Services is a set of E-commerce solutions, that is, Bezos said AMZN is an e-commerce incubator.

The value of marketplace platform to AMZN

Marketplace platform on the AMZN has three major values: the first is the development strategy, AMZN in the process of integration, opened up a lot of new product lines, but there was no new product line of the accumulation of the foundation in the procurement team; business processes; supplier relationships; It is impossible to become the best supply Chain manager in each product line, and it is impossible to reach enough category depth/commodity count in each category. But the collection of the best products in the AMZN platform, to provide users with the category/price/service of the best one-stop shopping choice is AMZN must ensure the core competitiveness, in this case, invite each product line field the best brand/ Retailers with their goods and the best supply chain management practices into the AMZN platform is very necessary, the current AMZN site more than 40 million of the commodity category, more than 120 million SKUs, the joint venture accounted for more than 30%.

Next is the business objective, increase overall turnover/market share and net interest rate at the same time cost reduction is also an important goal of enterprises, more professional quality business can quickly enhance the market competitiveness of AMZN, and the joint venture is less than the deduction of proprietary purchasing gross margin, but due to the cost of order processing by the merchant to bear, The cost of the platform is low, net interest rate will be relatively high (this year, the platform will bring AMZN more than 1.6 billion dollars of gross income, of which more than 1/3 is net profit, accounting for about half of AMZN net profit), And some associates use value-added services other than platforms such as logistics to reduce the cost of processing orders for proprietary goods. Finally, the competitive advantage, E-commerce competition is destined to be a B seller platform, AMZN with marketplace thoroughly overwhelmed ebay, although ebay GMV is AMZN marketplace more than 7 times times, but don't forget that ebay is a pure Consumer-to-consumer platform, Up to less than 20% of B merchants and new goods, most of the C sellers in the trading of second-hand goods, AMZN successfully blocked the AMZN of ebay's B-Self threat, ebay has almost no chance to turn over.

Finally, back to the cool days, do they really do not understand these reasons? No, I and cool friends said N times, they also agree, believe that the Japanese are not deadwood. But Morpheus said in the matrix: "Knowing and acting are two different concepts." Japan and South Korea's Internet enterprises, with extremely blind and paranoid self-confidence, completely do not look at the external environment, it is a frog in the well. This time, Lotte will be defeated in China (don't say what takes time, the Internet Enterprise Foundation is not open the door is not red, never think red, competitors will never give you time to learn to change the wrong), and its mercenaries Baidu, will also be in the E-commerce layout completely lost to Ali and Tencent.

PS:

1. This month's recommended Web site: Love Baby Island, Tintin plaid and Cheng fashion, the former is Wang and 007 of the mother and child of the dish, friends give me encouragement, I move towards the dream, encourage one; the lattice shop is one of my big head little Lori Basin friends just opened Taobao shop, the main selling wool hat, scarf and belt what, pictures are small pots friend self-portraits, Look at the monsters in my article. By the way to buy their own girls a hat warm, strictly prohibited bargaining, declined to ask for invoices, the largest number of small pots to send a friend from a picture; the last one is my friends Zhangxiaojun, shrimp and jade bone site, just on the line, a few overtime, no credit always have grease.

2. Book of the Month: "Innovator's dilemma/answer/turn" series three books, "The Revolution of the Model", "scientific Operation", "The Blood of the Crown", "three pairs of shoes." The first three books describe the impact of destructive patterns on the continuity model and why the leader of the continuity model will eventually be overturned in the destructive mode of the destruction of the land, Apple vs. Sony, and consumer to traditional retailing is a destructive model versus a continuity model. The subtitle of the latter two is the best interpretation of its content: the successful profit model of the fashionable own brand and the fast supply chain with the brand as the core. After reading the Strong Qin "Da Qin" and daming "those things" to see Shenghan "crown", Liu Shouxi words most to the force: "I do not believe that the bad currency to expel good money, if the world's evil people in power, it is just a nice man is not enough effort." "The last one is Hsieh's autobiography, this guy is a born narcissist and Oscar, very performance, the Zappos failed to achieve results and lost the credit of the bank caused the capital flow broken chain crisis forced to sell to AMZN said the Sequoia forced to withdraw." Amoy has done a lot of implant ads in this book, haha.

3. This month's recommended drama: "The Rhino in Love", too let a person have resonance, especially the last actor road stand in the rain 10 minutes of that paragraph of dialogue, very impact, today's society, most people are no longer for the heart of the beautiful stick to the end, a few of the insistence although silly but precious.

4. This month's song: Rhino Music in Love: "Oxygen", "Glass Woman", "give you the poem", "The Rhinoceros in Love", Songtaste, listen to each other with music.

5. In the men's own brand in the field of the real scale of the only customers, Marceau barely calculate, the old batch is not dead or dying. Taobao's start of the men's independent business-to-consumer are not the amount, in fact, there is a big gap between Marceau and the market can accommodate 1 billion network brand (independent), the market Amoy brand, Amoy brand is guerrilla, in the former "rural soil" breeding, survival (profit) is the goal dang is fundamental. And now Amoy outside all "urban soil" (Taobao is a greenhouse, will adapt to the external environment to change their internal conditions, the untimely metabolism out, the guerrillas want to attack the city (extranet network brand) need to siege weapon (System logistics supply chain) and not afraid of bloodshed (burning money), More to the regular organization structure (professional team management), most of the Mountain King will die, even foreigners (VC) gave them arms (investment). And the regular Army team will have the opportunity, a "urbanization process" occasion with small elite Regular Army play and resources to rout the guerrillas, in the era of large-scale army war, as long as the integration of resources and enough money, this opportunity who hold?

6. The capacity of the three major seven weapons: supply chain capacity (strong operational capacity: A quick amount of money, replenishment, quality, material hoarding, high price/performance ratio, ability to build a brand (advertising evaluation mechanism and ability to control ROI and ability to push fashion trends: 29 yuan T; canvas shoes; snow boots; spokesperson; object) ; Service capability (self-built logistics/30-day door-to-door return); Talent (Business Star Team, a large number of traditional talent), capital (nearly 200 million U.S. dollars in financing), strategy (online Ikea; v); Operations (steadily improving quality and order processing capacity); Rhythm (what to do every year, what steps to take, how to react quickly to the times, steadily improve continuous optimization); management (relatively high level of management under high speed expansion, no serious management imbalance); system (strong IT capability). BTW: Every guest's international station is also on-line, the standard typical concise American style.

7. No comment on M18 's IPO, citing only the words of Caichai: "The first listing in all areas is not recognized by the industry, and even the second third is not, it seems to be quite confusing." In fact, the rush to go public is often the listing as a destination, and really good companies at most as the top of the road to look at it as a resting place. "Also did not feel to the Chinese to have what too great significance, after all, the heaven has often, not for Yao to save, not for the death."

8. Today, Jingdong Book category online, from the comprehensive War began, the book into the world three points. By the way advertise: Jingdong ued Recruitment Senior Product Manager, senior visual designer, experienced with research and front-end engineers each 2, repair dragon operation, goods and emperors, together with Jingdong to create the future, interested parties please send your CV to: wangyu@360buy.com

9. Saw the AMZN Q3 Quarterly, the revenue rose nearly 40% too nb, this year AMZN must be over 35 billion dollars. Last month bought BUYVIP, officially into the luxury discount online market, in each big enough vertical market, AMZN will go into it, they can not do on the acquisition.

Gsic Zeixinbusi, a federation of online retail Web sites based on the traditional retailer's consumer, ShopRunner, who spends 79 of millions of knives on two-day free shipping for all of the federation's businesses, AMZN will upgrade prime services for counterattack.

11. A few days ago and Chen Tenghua classmate ate meal, is really high, he used a word on the height summed up I have been spared the black Chinese traditional retail view: Commercial real estate model can never achieve commodity differentiation, there is no buyer soul of the Chinese department store retail industry.

12. The new book "Web Analytics 2.0", translated by Gene and Dave, is written (ready to write a 140-word microblog), 工欲善其事, prerequisite, which is published next year in the country, is really worth seeing.

13. Last month, just saw a brain residue clothing in Sina advertising, sell thousands of yuan of own brand, advertising still in every guest still under Marceau, too happy.

14. The great supply chain in the West chamber is very strong, even in the peak food can be served in 5 minutes, the volume is large. and downstairs beverage shop of milk tea out of the situation has not been resolved very well, but also price increases, now even cola are out of stock, supply chain AH supply chain, in contrast, to see.

15. Weekend and Ma elder sister in three Li Tun stroll, the big girl is more. For the first time in life, mobile shopping took place at the door of the three-li-tun Apple store and bought a book on wifi in the store.

16. On Weibo, see a phrase: "If you want to be smart, then you have to be with the smart people, you will be more intelligent, if you want to be good, then you will be with the good people, you would be outstanding." "I TM finally know why I lose weight, so I always with a group of fat together!"

17. Thomas. Pan VII to the force of the full swing, buy Zhongguancun kindle Chinese system of the white aunt, their own entrepreneurial small fat curse really efficacious, alpaca counterattack, hat turnover is also very important, a group of eggplant strange, Wang Watermelon said someone was a fake dad, eat to urge others checkout qualified CFO, Meat Loaf restaurant vs smelly eggs vs Eason Chan, Cloud Action, God Horse plan, refuse to rot.

18. The vegetable root Tan has the cloud: Zangfau, uses the dark and bright, the Yu Qing in the turbid, bends for the extension. Hide the thought in the ordinary, with modesty to cover up their sharpness, in the turbidity to maintain the pure and noble, to retreat as the pace of progress. Can be both carefree and outstanding.