Social e-commerce, the trust-centered social transaction model reduces the marketing cost of merchants. The author of this article starts from the current situation of social e-commerce, makes a simple analysis of its common types and meanings, and shares them with you. Social e-commerce is blooming everywhere I don’t know when it started, WeChat and WeChat groups on the mobile phone screens of domestic residents began to become the gold nuggets and fragrant pastries that various domestic startups scrambled for. On the one hand,
there is the large-scale closure of traditional micro-businesses, and on the other hand, the sudden emergence of various new social e-commerce businesses. Represented by tens of billions of Yunji and 100 billion of Pinduoduo, in the past year or so, many social e-commerce models have emerged. Departure, the outbreak of nodes job title email list one after another. Social e-commerce platforms such as Yunji, You Good Things, and Global Catcher have received millions or even tens of millions of financing in recent years, and more and more players have entered the social e-commerce track. In July 2018, Pinduoduo grew up in the cracks of domestic e-commerce giants JD.com and Taobao through the sharing and dissemination of the WeChat social chain, and successfully went public in the United States.
As of this writing, it has accumulated 400 million users. In addition to emerging e-commerce, traditional e-commerce giants do not want to miss the opportunity of social e-commerce. For example, on May 23, 2019, Taobao held a media communication meeting for its new project "Tao Xiaopu". The social relationship chain conducts product sales. A similar role in selling goods on JD.com is called "Jingchaoke". Today, I will simply talk to you about social e-commerce. Common types of social commerce Content-based social e-commerce drives transactions through content. Audiences gather together to form communities based on common interests and hobbies.
They attract users to visit through their or their own high-quality content, accumulate fans, and then guide users to fission and transactions. The characteristic of this type of e-commerce is that it can use the production content such as Internet celebrities and KOLs to attract users to consume, but the threshold is that the ability of the operation team is relatively high, and a continuous high-level content output team is required. A typical example is small red book. We, Reed, have recently developed a social app for customers. Its biggest feature is to provide content for merchants or KOLs, Internet celebrities, etc., which solves the barriers to user sharing from the perspective of content production, thereby forming better recommendations and conversions.
This type of e-commerce retail social e -commerce can be simply understood as empowering users. Users can use social networking tools such as WeChat to use personal contacts and influence in personal social circles to conduct commodity transactions. Common models include direct sales (B2C) and distribution ( S2B2C) two modes. Direct selling means that merchants directly push products to C-end consumers through the mall, and C-end consumers can buy directly or forward and recommend them to their friends, while distribution means that the platform side is aimed at individual store owners and other small B users, and indirectly contacts them through them. C-end consumers. Xiao B is responsible for traffic acquisition and distribution, and services such as commodity supply and after-sales are provided by the platform.
A typical example is Yunji Micro Store. Sharing social e-commerce mainly through user sharing, based on WeChat and other media, to capture the psychological characteristics of users like taking advantage of small things, showing off, and using a variety of encouragement and incentive measures to stimulate individuals to conduct activities in WeChat groups, circles of friends, etc. The most simple and typical way of product promotion is the group mode. In this way, e-commerce platforms can use the user relationship chain to activate user groups in third- and fourth-tier cities and below at a lower cost. A typical product is Pinduoduo. The meaning of social commerce In the eyes of the founders of Pinduoduo, social e-commerce is a pseudo-concept, e-commerce is e-commerce,
and social networking is social networking. Today, I do not want to discuss the establishment of the concept of social e-commerce, but to talk about the meaning of social e-commerce from a business perspective. Building the trust foundation of products Traditional e-commerce is to build users' awareness of product brands through branded products' own traffic, advertising promotion, etc., so as to gain users' trust, while social e-commerce is recommended by friends, and their friends themselves exist. A trust account will help brands gain the trust of users. Therefore, as long as the recommended products are good enough and have a high degree of matching with friends, it is likely to form a virtuous cycle of recommendation, and the conversion rate will be much higher than that of traditional e-commerce advertising. Of course, at the same time, if the recommended products are too poor,
the foundation of trust will be destroyed. Compared with traditional e-commerce, it is easier to form a vicious word of mouth in the social chain. To reduce the cost of shopping decision-making, we must know that today’s information explosion has made shopping relatively inefficient. It is no longer enough to urgently rely on recommendations to reduce the difficulty of consumers’ choices. The large number of Internet e-commerce platforms undoubtedly allows users to choose more difficult. In social e-commerce, products are recommended through the screening of friends, and the products themselves have been screened by friends once. In this case, it can undoubtedly reduce the behavior cost of buyers. Improve the efficiency of the supply side of goods Pinduoduo CEO Huang Zheng mentioned a point: use the recommendations of people,
the relationship between people, and the similarity of interests, to merge people into groups, and to attribute each person's personalized needs. Integrate programmatic requirements with a certain amount of time affluence. Through social e-commerce, in the process of product promotion and conversion, friend recommendation plays a role in collecting uncertain user needs, so that uncertain needs can be collected semi-planned, so that we can reverse Promote the supply chain based on sales, improve the efficiency of the supply side, and reduce inventory pressure.
Epilogue The essence of retail and commerce is higher efficiency, and in commodity trade, how to solve the trust barrier between buyers and sellers has always been the key to the transaction. Social e-commerce can greatly reduce the marketing cost of merchants through social trust, and can achieve fixed deposits through sales through decentralized demand collection. From this perspective, social e-commerce is undoubtedly a kind of e-commerce that can improve retail efficiency. The business model has the value of its existence.