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Today's hot spots on the Internet still focus on industry giants, development models and directions, celebrities' gossips and feuds, etc. However, there is one area that is rarely mentioned. Its development has reached a large scale and fierce competition is taking place. This is small wholesale online. There is no statistical data showing how many small wholesale websites are currently on the Internet, but there should be thousands of them. The intensity of the bidding in Baidu PPC can be seen. The homepage of search results for related popular keywords is almost promoted by PPC. The website is full:
Geographically, most of these small wholesale websites are located in major commodity manufacturing cities in China, most of which are Yiwu City in Zhejiang Province and Guangzhou City in Guangdong Province. Obviously, only by being located in the place where goods are produced can you have the opportunity to obtain low-priced supplies. From the perspective of economic laws, this is an inevitable choice.
The emergence of small wholesale websites is also a product of economic development. More and more people choose to shop online because of the wide selection and low prices. The most distinctive feature of online shopping is that it bypasses the profit margins of the middlemen (wholesalers) in the traditional retail industry, making it possible for commodity prices to be at a comparative level. Cheap. This trend not only happens to end consumers, but also retailers (store owners) have obviously seen this. They are no longer satisfied with purchasing goods through traditional hierarchical wholesale channels, but are also trying to start purchasing goods online, from source places (such as Yiwu, Guangzhou) directly purchases goods, so that it is possible to get cheaper supply. The cheaper the supply, the greater the profit margin for the retailer (store owner). Obviously, small wholesale websites have sprung up to meet the needs of these retailers (store owners).
The city where the author is located is Yiwu. When mentioning Yiwu, most people immediately think of small commodities. Yes, this is a city rich in small commodity trade. Small commodities generally such as jewelry, daily necessities, stationery, toys, socks, and decorations are small in size and light in weight. It is suitable for express delivery, which is why there are so many wholesale websites in Yiwu: low logistics costs create conditions for foreign retailers (store owners) to purchase goods online.
Numerous Yiwu small wholesale websites are following the traditional business model of Yiwu small commodities: small profits but quick turnover. Yiwu started its business by exporting foreign trade and followed the path of small profits but quick turnover. For example, the manufacturer makes very little money from a jewelry accessory bead, maybe only 1 cent (0.001 yuan) or even less, but the volume is large and it is often exported. One container or even several containers contains hundreds of millions of beads, so the profit from the entire order is still very generous. The characteristics of the traditional model are: small orders, large quantities, single goods, no need for after-sales, and trouble-free. The Yiwu small wholesale website encountered many problems when trying to move this model to the Internet. First, the profit was thin, the quantity was small, and the goods were miscellaneous. It also had to provide customer service, after-sales, handle logistics problems, etc. What was even more troublesome was that , they also have to do online promotion and operation. You must know that most small wholesale website owners have almost no experience in online promotion. They just think "if I put the website up, users can see it. My price is advantageous, and the business should be done." It would be nice.”
However, many people still resolutely set up small wholesale websites, and they are constantly exploring and practicing this inevitable trend of economic development. If a small wholesale website wants to grow bigger, I think there are two major bottlenecks:
First: the coverage of high-quality supply is narrow. A small wholesale website may have a price advantage in the supply of a certain type of goods, but it cannot have a price advantage in all types of goods. This will cause users who purchase goods to wholesale the goods with a price advantage here, and then go to another one. Which wholesale website has a price advantage?
Second: Labor costs increase with sales volume. For example, set the per capita salary to 2,000 yuan per month and the profit rate to 10%. When a small wholesale network has only 5 people, it needs monthly sales of 100,000 yuan to make a profit, and they will find that when the monthly sales reach 100,000 yuan, there are many problems from purchasing, warehouse management, customer service, packaging, and shipping. Every aspect of delivery is too busy. Five people can no longer meet the development needs, so we need to recruit people, which will increase the labor cost. Six people need a monthly sales of 120,000 yuan to make a profit. The above assumptions do not include office facility costs, warehouse costs, electricity costs, transportation costs, communication costs, promotion and publicity costs and other related expenses.
No matter what, thousands of small wholesale websites have been born, and they are constantly adjusting and developing, trying to find their own way. As far as the author knows, several small wholesale websites are already making profits and their development momentum continues. Without being noticed by mainstream media and netizens, they are quietly making their own contributions to the development of China's Internet e-commerce and quietly changing the traditional business model.
Source of this article: http://www.webzq.com/2010_07_41.html