What is second-category e-commerce and what should second-category e-commerce do?

The so-called second-tier e-commerce is broadly defined as a form of single product promotion based on cash on delivery. Generally speaking, the second category of e-commerce is a supplement to the first category of e-commerce. The first type of e-commerce is online payment, while the second type of e-commerce is cash on delivery. In fact, this point is very clear. The customer groups targeted by second-tier e-commerce are generally not the customer groups of first-tier e-commerce. So what is second-category e-commerce and what should second-category e-commerce do? Let’s follow Feng Chao from Dongguan to find out more!

What is second-category e-commerce and what should second-category e-commerce do?

They are mainly people who are using mobile Internet but do not know how to shop online. Does this group of people sound familiar? Your parents, grandparents may be part of this shopping group. They have the typical characteristics of early Internet users. They have a strong desire to shop, but do not trust online payments and make e-commerce purchases through cash on delivery. When I first started shopping on Taobao in the early 2000s, I didn’t trust it and wanted to pay on delivery. These users are the target customers of the second-tier e-commerce companies, people who have not yet been covered by the first-tier e-commerce companies. However, many of these people have been divided by social e-commerce companies such as Pinduoduo...

In fact, second-tier e-commerce has been popular for four or five years. Some people have escaped poverty and become rich, while others have become heavily in debt. However, the competition in the e-commerce industry is so fierce that every year there are still new people entering the market to fight, and every year there are new e-commerce companies that successfully take the lead. So, the market does exist after all, and whether you can operate it successfully depends on your personal strength. The keys to the second category of e-commerce are product selection, delivery, and logistics.

Product selection: Second-class e-commerce generally chooses single products and hot-selling products, but when targeting the population, the first class is also mainly based on users with urgent needs. The specific selection should be based on the user attributes of the platform you are targeting and the data package you choose.

Launch: The second category of e-commerce has been around for more than two years, and the platform has accumulated a lot of second category e-commerce ordering users. It is recommended to do a trial launch first, or choose professional operators to do the launch.

Logistics: Choosing a reliable logistics company is very important for second-tier e-commerce companies. The speed of logistics, service quality, and payment collection speed directly affect the customer's product receipt and profitability. Both SF Express and JD Logistics are good, but SF Express's fees are a bit high.