While online shopping is becoming popular, opening an online store has become a popular way to start a business among many young people. How much profit can you get from opening an online store? The reporter investigated the highest-level double-golden crown sellers and the few five-crown sellers on Taobao and found that the net profit of the five-crown sellers can reach more than 1 million yuan a year, and the double-golden crown sellers are even more It is a group business model that has developed into hundreds of people.
Start an online business with a "fun" mentality
On Taobao, a seller's credit limit is continuously upgraded based on customer reviews, from hearts to diamonds, to crowns, and finally to gold crowns, and each upgrade requires five stages. Currently, there are three double-golden crown sellers on Taobao, 11 five-crown women's clothing sellers, and many five-crown sellers that sell women's clothing, cosmetics and food. The reporter found that the cumulative credit of most Five Crown sellers is more than 200,000, which means that the total transaction volume of the online store has reached at least 200,000 orders.
Lemon Green Tea is the first Double Golden Crown online store on Taobao. Shop owner Zhang Dinghua is from Shanghai and graduated from the Department of Traditional Chinese Medicine, Shanghai University of Traditional Chinese Medicine. After graduating from university in 2003, Zhang Dinghua worked as a telesales and customer consultant for a health care product company in Shanghai. Because of her interest in cosmetics, she opened an online cosmetics store after work. "In 2003, online shopping was still in its infancy in China. I just opened a part-time store for entertainment and had no intention of doing anything."
Also opening a store with a fun-loving mentality is Qi Jun, the owner of the five-crown seller "Liangliang Snapdragon." Qi Jun is a 25-year-old girl from Nanjing. In 2005, when she was in her third year of college, she opened an online store on Taobao. She had a lot of free time at the time, so she opened the store to pass the time. Qi Jun's relatives ran a cosmetics store. Qi Jun used this as a source of goods to start a cosmetics business, and later gradually introduced clothing, accessories, etc.
"Women singing and husbands following" has become the main model for online store expansion
Taobao's five-crown and above-level stores all have a certain scale. From supply, sales to after-sales, they have formed a corporate management model, and some online stores have even built factories. Many online stores were initially started by their wives. After they developed to a certain scale, their husbands joined them and made the online stores bigger in a "wives-song-husband-following" way.
Zhang Dinghua's husband is Wang Weidong, and friends in the industry are accustomed to calling them "lemon" and "green tea". The initial online store was run by Zhang Dinghua alone. A year later, the store's business was booming. Wang Weidong resigned from his lucrative position as financial director of L'Oréal Group and ran a "mom-and-pop shop" with Zhang Dinghua. The division of labor between the two has gradually become clear. Zhang Dinghua is responsible for purchasing and sales and other business work, while Wang Weidong is responsible for personnel and administrative management work.
Qi Jun's "Liangliang Snapdragon" is also a mom-and-pop shop. Initially, their store only had 50 or 60 kinds of products, with a daily sales of 500 to 600 yuan and a net profit of about 100 yuan. After operating for more than three years, the online store's business scope covers everything from cosmetics to clothing, accessories and other women's products.
The stage of attack from hearts to crown
The direct basis for evaluating the level of an online store is its credit limit. Online stores with a high credit limit can not only be upgraded step by step, but also win the trust of customers. On the contrary, sellers with a low credit limit have difficulty doing business. Mr. Lu, head of Taobao's public relations department, said that the initial accumulation of credit has become the most difficult stage of operating an online store.
Zhang Dinghua and his wife did not hesitate to spend a lot of money in order to accumulate credit for their online store. Zhang Dinghua said that in the early days of starting the business, there was no credit. In order to reassure customers and increase their popularity, they opened two physical cosmetics stores in Shanghai People's Square and Jing'an Temple. Purchasing goods and renting stores require funds. When the situation was most difficult, a friend used his house as collateral to lend them a loan of 50,000 yuan to help them tide over the difficulties. Additionally, another important aspect when building credit is establishing good trust and partnership with suppliers. Suppliers also provide great support to "Lemon Green Tea". Many products are settled upon delivery, upon sale, or monthly, allowing "Lemon Green Tea" to make use of the time difference in capital turnover to make a living.
Five Crown Sellers Sell 20,000 Yuan Goods a Day
The stores on Taobao have achieved five crowns, the customer base and suppliers have been very stable, and the profits are also considerable. Qi Jun's "Liangliang Snapdragon" has been open for four years. It currently sells 20,000 yuan of goods every day, of which the profit is 10%-15%, which is equivalent to a daily net profit of 2,000-3,000 yuan. After one year, the store can earn up to 1.1 million yuan. Yuan or so.
Based on Taobao's credit record, the amount of money Qi Jun has earned since running the online store can be calculated. In order to prevent sellers from creating false credit, Taobao stipulates that if the same buyer purchases more than 6 items from the same store in the same month, the maximum positive rating can only be 6 points; when the same buyer purchases the same item from the same store within 14 days, regardless of whether No matter how much you buy, you can only get one positive review. According to the rules of one point for a good review, no points for a neutral review, and one point deducted for a negative review, the credit score of "Bright Snapdragon" totals 207,010 points, which means that the transaction volume is at least 207,010 pieces. The average price of "Bright Snapdragon" products is calculated based on 100 yuan, and the profit of each product is 10%-15%. The profit of each product is 10 to 15 yuan. The maximum profit of 207,010 products is more than 3 million yuan.
After turning the store into a five-crown store, Qi Jun's online store has also become very mature. At present, the online store has 12 or 3 employees, more than 20 suppliers, and a total of more than 3,000 products.
Shuangjinguan's "Lemon Green Tea" has begun group operation, and now has a team of nearly 300 people, with more than a dozen departments including the retail business department, B2B business department, procurement center, and warehousing and logistics center. The online store has a flagship store for accessories, a flagship store for household products and a flagship store for clothing. The online store sends more than 2,000 packages on average every day, completes more than 10,000 transactions on average every day, and sells more than 20,000 items every day.
To turn the online store into an online "Wal-Mart"
After opening an online store for more than four years, Qi Jun's net worth has reached more than three million. She plans to open her own factory in the second half of this year to produce clothing, makeup and body care products. Controlling the production process can help her reduce a lot of costs.
Zhang Dinghua and his wife opened the online store as "Taobao's first store." Zhang Dinghua said that she hopes to set up a human resources training company to provide individuals who want to start a business through e-commerce, traditional enterprises that start e-commerce operations, or those who want to engage in e-commerce work. We provide training for graduates and laid-off workers, help Taobao sellers with high-end training or human resources management consulting, and teach everyone the practical experience of "lemon green tea". In addition, she also wants to set up an e-commerce outsourcing company to help enterprises standardize the operation of e-commerce on the Internet, including store opening, website creation, sales, marketing, Internet marketing, etc., and can provide complete outsourcing services.
The financial crisis also brings opportunities to online stores. Zhang Dinghua said that after the financial crisis, many large companies laid off employees, and "Lemon Green Tea" took advantage of this opportunity to actively look for suppliers. At present, the sales scope of "Lemon Green Tea" includes women's clothing, cosmetics, jewelry, food, household items, toys, etc. Zhang Dinghua's ideal is to turn the online store into an online Wal-Mart supermarket, which not only has a complete range of goods, but also has a larger scale and Influence.