What is Category II e-commerce? What are the differences with other e-commerce platforms?

When we talk about e-commerce, what will be the first impression? Taobao, JD.com, Pinduoduo, etc. This shows that they are all representatives of e-commerce, which can be said to be shelf-type e-commerce. Currently, various e-commerce models are developing, including social e-commerce, community e-commerce, etc., and today we mainly focus on popularizing some basic knowledge.

What is Category II e-commerce? What are the differences with other e-commerce platforms?

Category 1 e-commerce: A broad definition refers to online payment-based store promotion, such as Tmall and JD.com. The process is to open a product store, put products on the shelves, have customers place orders, pay online, sign for and receive payments, etc.

Category II e-commerce: A broad definition refers to a form of single product promotion based on cash on delivery, such as Guangdiantong. The process is to promote a single product page by opening an account, listing the product, actively promoting it, having customers place orders, and signing for payment.

From the above we can see some similarities and differences:

The common points are that they both sell products and are promoted through online platforms. The process is from product listing to purchase. It can be said that second-category e-commerce is a supplement to first-category e-commerce, but second-category e-commerce is more low-key, or the current size of second-category e-commerce is still small enough to not attract enough attention.

The similarities and differences are in the payment methods. The first type of e-commerce is online payment, while the second type of e-commerce is cash on delivery.

On the promotion landing page, the first type of e-commerce is store promotion, while the second type of e-commerce is single product promotion.

In terms of settlement methods, the first type of e-commerce settles with third-party payment companies, while the second type of e-commerce settles with express logistics companies.

In general, second-category e-commerce is a supplement to first-category e-commerce. The earliest second-category e-commerce was portal websites such as Sohu and Sina. The target audience was a large number of people in third-, fourth- and fifth-tier cities who had consumption power but were more cautious or even had no payment conditions. Therefore, they chose cash on delivery, which was more of a reflection of exchanging money for goods.

With the development of e-commerce, especially the activation of consumption in third-, fourth- and fifth-tier cities, the needs of this group of people also need to be met. Therefore, the second-tier e-commerce will also have greater development. The products remain unchanged for thousands of years, and even the packaging will change, but the method will only change. The overall situation of the first-tier e-commerce has been determined, and after the breakthrough of social e-commerce such as Pinduoduo, the second-tier e-commerce may become an aspect of the giants' efforts.

This is also the reason why JD.com and Taobao have been moving towards rural areas but have not had a big explosion, because rural consumers will not use Taobao or Tmall. This is a natural difference in habits. It depends on whether the platform changes or the consumers change. It is certain that changes in consumer habits take a longer time, so there is actually not much time left for the platform. But for merchants, this may be another bonus time after a type of e-commerce platform.