The current situation, advantages and disadvantages, and development trends of live streaming e-commerce!

Is live streaming sales a “temporary trend” or a “future trend”? Let’s discuss the opportunities and challenges facing e-commerce live streaming in 2020.

​The epidemic at the beginning of 2020 has had a great impact on traditional industries, and the situation of physical clothing stores is not optimistic. Under such circumstances, e-commerce live streaming is still booming thanks to the advantages of online platforms.

According to the Zhihu industry report "2020 E-commerce Growth Drivers", people's consumption concepts have undergone new changes, and private domain traffic has received more attention.

1. How to operate the private domain traffic of live e-commerce more efficiently?

2. How can live streaming e-commerce seek new growth opportunities amidst the current fierce competition?

1. Advantages and disadvantages of e-commerce live streaming

2. Analysis of future development trends of the e-commerce live streaming industry

3. How to combine private domain traffic operations and backend resource integration to achieve new breakthroughs

3. With the rise of new online shopping forces, how can the e-commerce industry take advantage of it?

1. How do you view the importance of product matching?

2. E-commerce profits have been decreasing year after year. How to deal with it?

3. The rise of emerging technologies

Guest Profile

Carmen, who previously worked as an anchor assistant and new media operator in an e-commerce company, hopes to use her work experience to dispel everyone’s misunderstandings about live streaming, and discuss with everyone how the e-commerce industry can grasp the live streaming trend and seek business growth.

1. How to operate the private domain traffic of live e-commerce more efficiently?

First of all, we need to understand: What is private domain traffic? What is the operational strategy for private domain traffic?

The so-called private domain traffic refers to the traffic that individuals can use freely and repeatedly, without paying, and can access at any time. It usually refers to users who are deposited in self-media channels such as official accounts, WeChat groups, personal WeChat accounts, Toutiao accounts, and Douyin .

Compared with public traffic platforms such as Taobao, JD.com, and Baidu, it is more like a "private asset" belonging to merchants.

Private domain traffic is a concept relative to the "traffic pool" .

Traffic pool refers to channels with huge traffic, such as Taobao, Baidu, Weibo, etc. As long as the budget is sufficient, new users can be continuously acquired. These channels are called traffic pools.

Private domain traffic , on the other hand, refers to channels that allow us to directly reach users at any time and frequency without paying.

Private domain traffic is an operating model mainly reflected in online platforms .

For example, the owner of a physical clothing store updates styles on WeChat Moments and releases new products through WeChat groups, which is the use of private domain traffic. The "Taobao Fan Group" used by Taobao anchors is also a way of private domain traffic, which is equivalent to the WeChat fan group.

The core of private domain traffic is the maintenance of user relationships , which is somewhat similar to traditional CRM (customer relationship management).

The main purpose of operating private domain traffic is to increase intimacy with fans, which is what we usually call enhancing the "stickiness" between merchants and users.

Private domain traffic is also similar to community operations.

The private domain traffic of e-commerce live streaming is generally dominated by WeChat groups and Taobao groups , and is mainly operated and maintained through interest inducement and high-quality content.

The highest level of private domain traffic is personification . Being able to shape yourself into an emotional expert + friend with flesh and blood and life is the highest level of private domain traffic operation, that is, becoming the "personal partner" mentioned in the figure below.

(Image source: Tencent Smart Retail x BCG)

How to operate private domain traffic efficiently?

First of all, there must be a good conversion path, that is, through what kind of channels, what kind of people can be converted into private domain traffic.

During the live broadcast, the store owner attracts fans to join the Taobao group first, and then operates through the Taobao group. After the conversion, the operation will begin.

What methods can be used to retain private domain traffic?

The most important thing is to consider from the user's perspective. What kind of feedback and rewards can they get when they enter your traffic pool? Why should I stay in your group and follow your activities?

(Photo source: Group member Ellen obtained this photo from other communities)

Usually Taobao anchors will guide fans to interact and pay attention through the following methods:

For example, coupons are distributed within the group, gold coins are received by checking in within the group, relevant welfare activities are held, and everyone is encouraged to forward to get gifts. The live broadcast room can send out red envelopes online, hold raffles, repeatedly announce product discounts, or encourage consumers to click the red heart in the lower right corner and then send out benefits.

Of course, these events will have a period of fan fatigue.

The most important thing is to rely on the host's personal charm to attract fans, while focusing on meeting user needs and solving user pain points .

Creators (anchors) must first find their correct positioning (personality) and output content in a stable manner based on the characteristics of their own private domain traffic.

Many times, consumers don’t care what the anchor is selling, but rather their desire to buy is based on their trust in the anchor.

For example, Li Jiaqi, although he debuted with lipstick, now also sells food, clothes, etc., and everything he sells is very popular. His fans won’t touch the brands he complains about.

This is the influence of the top anchors.

Therefore, the conversion thinking of private domain traffic is fundamentally still fan economy.

Operating private domain traffic can accurately identify customer groups, facilitate maintenance, improve conversion rates, and thus achieve monetization.

Specifically, private domain traffic has the following advantages:

1. Prevent user churn. The marketing of private domain traffic is more precise and can effectively enhance user stickiness and loyalty, greatly reducing the risk of user churn.
2. Improve conversion rate. In private domain traffic, the emotional connection between the anchor and the user is stronger. On the one hand, the user conversion rate is high, and on the other hand, the user experience is improved, and then through user word-of-mouth communication, customer acquisition and conversion are further promoted.
3. Reduce marketing costs. Private domain traffic can be said to be free, and anchors can conduct multiple and targeted marketing to users.

2. How can live streaming e-commerce seek new growth opportunities amidst the current fierce competition?

1. Advantages and disadvantages of e-commerce live streaming

Let’s first analyze the advantages and disadvantages of e-commerce live streaming.

Let’s talk about the disadvantages first. The most obvious one is that live streaming usually doesn’t allow you to see the details of the product, feel its texture, or accurately perceive the product.

When it comes to clothing, users can’t see how it will look on them. The lighting, camera, etc. in the live broadcast room have a great impact on the appearance of the product and may mislead consumers. For example, if the lens is not clear enough, or the host actively uses filters and special effects, it will affect the real experience of beauty and clothing products. At the same time, some products that focus more on color may lead to misjudgment of product demand because the device display effect when viewing is different from the actual color.

The host's image and behavior have a great impact on the viewing experience. If the number of people online is high and active, it will be difficult for the host to meet everyone's requirements. Some anchors use recorded broadcasts to save time, which gives people a very bad experience; while some anchors are contagious, and the group effect in the live broadcast room is very strong, so consumers are prone to impulse buying and buy many products that are not suitable for them, resulting in a high return rate. If fans are not satisfied after receiving the goods, they will lead the trend in the comments and spread negative energy. Facing such emergencies, the host's ability to respond quickly on the spot is greatly tested.

E-commerce live streaming also has many advantages. Compared with the flat images on online platforms, live broadcasts are more intuitive, more real, and more interactive.

Live streaming allows consumers to see every aspect of a product more directly. Some anchors can even make various combinations based on fans’ requests and directly view the effects. Compared with pure pictures and short videos, the host's real-time language and emotions and the audience's instant feedback will make the products appear more real, thereby reducing the cost of trust. At the same time, with the presence of an anchor in the live broadcast room, there is a real-time interactive channel, which allows users to feel personal service, user demands can be responded to quickly, and the anchor can also quickly learn about user feedback.

Zhao Yuanyuan, head of Alibaba's live streaming, said that live streaming has obvious advantages over traditional e-commerce. She believes that the live broadcast of Borgward Automobile, which was participated by Lei Jiayin, internet celebrity Geng Shougong and Taobao anchor Chen Jie KIKI, is of milestone significance. On the surface, it seems to be just a victory of three big stars + promotional benefits, but behind the scenes it is a successful experiment of new brand endorsement model + innovative live broadcast content + short-link communication + new promotion.

The real-time interaction of live broadcasts and the presentation of videos make it easy for anchors to plant seeds, create a sense of urgency to promote sales, and use visual stimulation to excite users and easily make orders.

Most importantly, live streaming is conducive to building live streaming brands and fan effects.

The anchor's continuous exposure allows him to continue to accumulate fans and form a personal brand. The establishment of a personal brand greatly reduces the trust cost between users and products.

2. Analysis of future development trends of the e-commerce live streaming industry

Short videos and live broadcasts are the current trend, spreading information quickly and having high public acceptance.

During the epidemic, everyone stayed at home and relied more on live streaming to pass the time and do shopping. Therefore, live streaming began to develop rapidly, and training courses were launched in many places.

This shows that the trend of e-commerce live streaming still exists. Now Douyin has close to 300 million daily active users, and at the same time gives huge subsidies to anchors, and many people are selling goods through Douyin. WeChat Live and JD Live are also just getting started.

(Photo source: Group member Ellen obtained this photo from other communities)

(Photo source: Group member Ellen obtained this photo from other communities)

(Photo source: Group member Ellen obtained this photo from other communities)

Live streaming is currently very advantageous, but it is not enough to replace offline shopping guides. It is expected that in the next six months, live streaming will enter an adjustment period due to user aesthetic fatigue.

The problems of selling counterfeit goods and high return rates during live streaming still exist; the top anchors have high bargaining power, and many merchants are also clearing their stock at a loss, so merchants will not use it as the main means of selling goods.

After this period of intensive marketing, some users have begun to feel aesthetic fatigue, and the State Administration of Radio, Film and Television has also begun to regulate live streaming. It is inevitable that the industry will experience certain shocks in the future.

But this will not prevent live streaming from becoming the norm in the future and becoming a promotion-oriented marketing tool.

It now seems that live streaming can be regarded as an effective advertising method that emphasizes ROI. And live streaming itself will also evolve further. VR, AI, and robotics are all future trends. These can be combined with live streaming to continuously improve the user experience.

In the future, robots may replace offline shopping guides. Live streaming may be combined with AI and VR to allow users to try on clothes and lipsticks remotely. Although some people in the industry have tried to use VR technology, current VR only provides vision but not touch, has very high requirements for hardware configuration, and it is difficult to completely restore the texture.

(Photo source: Doucai College WeChat official account)

At the same time, another concern has emerged in the industry: under the impact of e-commerce live streaming, will future products be de-branded?

My answer is no.

Now fans flocking to anchors, isn’t this also another form of branding? When it comes to live streaming, users only recognize people, not brands. There is an invisible trust endorsement between people and goods. When users consume things recommended by KOLs, fans will be willing to buy them regardless of whether there is a brand or actual demand. This is not de-branding in essence.

3. How to combine private domain traffic operation and backend resource integration

The back-end resources for achieving new breakthroughs refer to the product resources held by merchants.

For example, the source of goods in an anchor’s supply chain is the back-end resources he holds. It can also be understood as a product.

Excellent anchors will prepare in advance before the live broadcast, such as selecting goods and locating the venue.

Without strong supply chain resources, there will be many difficulties on the road to live streaming, just like being a buyer without resources is not possible, because the products must always be kept fresh to avoid aesthetic fatigue among fans.

Supply chain management is a technical job and is not as flexible as live streaming itself.

It is relatively easy to control online sales, but to deliver products in a timely manner and ensure sell-out and after-sales rates, a solid supply chain foundation is still required.

The styles that anchors can choose from in supply chain live broadcasts are actually very diverse, but the prerequisite is to have a large enough supply chain resources to continue to bring new styles to fans.

First of all, the anchor needs to understand his fan base so that he can “prescribe the right medicine” and choose products more specifically.

For example, when registering on Douyin, each user is given a label, and subsequent live broadcasts and videos are matched according to the label used during registration.

If the content does not match the label, the platform will match much less traffic.

The host’s positioning must be clear. If the style of the products launched in each live broadcast changes drastically, fans will not be retained.

Content marketing in live broadcasts is reflected in the "product" itself, so accurate positioning at the beginning is very important.

But in fact, many anchors cannot achieve it in one step, and they have to make constant adjustments during the live broadcast.

Therefore, a good anchor cannot do without strong operations behind the scenes.

An excellent Taobao live broadcast cannot be separated from the teamwork of excellent anchors + excellent operations + product selection capabilities + supply chain sources.

In summary, integrating backend resources requires anchors to do the following three things:

1. Adhere to positioning and continuously output content marketing;
2. Finely operate and maintain the fans in the traffic pool, handle them in layers, and give different treatment methods and means to fans at different levels;
3. Receive users' demands and satisfy them in a reasonable manner to achieve strong interaction and bonding.

Further reading: The current situation of fake traffic

Some MCN agencies now create fake traffic for anchors.

For example, if a live broadcast has 35,000 traffic, if the host is not well-known, it is possible that more than 30,000 of the traffic is fake. How to achieve it?

It seems that now traffic and barrage can be traded and purchased, and the price is not expensive.

However, purchasing fake traffic will affect the host's live broadcast weight, such as the right to appear on the homepage and the right to display public domain traffic. For example, for an anchor with 10,000 fans, if Taobao’s backend mechanism finds that the transaction amount of his live broadcast is not proportional to the total number of fans, then the traffic of the anchor’s live broadcast room will be reduced.

3. With the rise of new online shopping forces, how can the e-commerce industry take advantage of it?

1. How do you view the importance of product matching?

Faced with the difficult problem of product matching, internet celebrities can form a perfect complement with factories, promoting mutual benefit.

Internet celebrities, KOLs and factories are actually a very good complementary combination: Internet celebrities suffer from the inability to monetize their traffic, and factories have difficulty having products but no traffic.

Therefore, internet celebrities can work closely with powerful factories.

For factories, it is well known in the industry that online traffic is expensive and customer acquisition costs are high.

The live streaming + e-commerce model breaks through the bottleneck of online customer acquisition and conversion for brands or factories, eliminating the steps of attracting new customers, promoting activation, and retaining existing customers. It directly sells goods and increases product sales, which is very meaningful for the initial brand building of the product.

When a factory seeks to cooperate with an internet celebrity, it needs to first analyze the host’s fans to see if they correspond to the target audience of the product, and comprehensively measure the host’s real ability to bring products based on several aspects included in the weight. The anchor’s fans are as sticky as the star’s fans. The stronger the fan stickiness, the stronger the anchor’s ability to sell goods will be.

In fact, in the current live broadcast ecosystem, the ability of mid-level anchors to sell goods is no less than that of top anchors. In addition to the top Taobao anchors such as Li Jiaqi and Wei Ya who are household names, some mid-level anchors with tens of thousands of fans are also very capable of selling goods, and the sales of a live broadcast can reach hundreds of thousands. The fans of these mid-level anchors are extremely loyal, and some of them have accumulated original customer base, so they have great potential.

The cooperation between factories and anchors is usually in the form of commissions and commissions. The supply chain mainly gets commissions, while the market gets commissions, and the specific proportion depends on the clothing category. If you cooperate with an MCN agency, there will be a "slot fee", which is what we often call an "appearance fee", which is determined by the host's ability to sell goods and fame. There is also pure commission cooperation.

If you want to know more about these contents, there are detailed introductions of agency anchors in Ali V Tasks. Generally speaking, the commission-based cooperation model focuses on quantity, while the commission focuses on the unit price of the product. Taobao Live is more based on commission, and the data is generally based on "Taobao Alliance". All data is settled based on actual transactions. Due to the possibility of returns, settlement may be delayed for a period of time. Now we are facing the impact of 5G technology, and this technological innovation is bound to bring the next climax to short videos. As far as e-commerce live streaming is concerned, in the future both product brands and celebrity IPs will be relatively weakened. Everyone is an anchor, everyone can sell goods, and everyone is a consumer and promoter of live streaming e-commerce.

Further reading | Is the live streaming industry really profitable?

(Image source: Find Brother Bao’s Weibo for Taobao live streaming)

The picture above shows the quotation sheet for Viya’s live broadcast cooperation, which is in the form of base price + commission.

It is said that Wei Ya's annual sales turnover is close to 3 billion, and her commission income + basic salary is about 1 billion. It is estimated that her gross profit is 50%, and operating expenses (marketing promotion, office rent, employee salaries, etc.) account for another 50%. 50% of the operating expenses are used to pay employee salaries (including Wei Ya's personal salary, which is a high proportion. According to optimistic estimates, this proportion will not exist in most cases). Her salary expenditure is about 250 million. It has about 100 employees, each of whom works more than 12 hours a day, which translates into "income/person/hour" with an average of about 570 yuan/hour/person.

Even if Wei Ya's hourly wage is 10 times the average hourly wage, which is 5,700 yuan/hour; even if it is 20 times, which is 10,000 yuan/hour, this hourly wage is indeed much higher than that of the general working class; however, compared with executives of large companies and professions such as lawyers and consultants who charge by the hour, this hourly wage is not considered high - what's more, when calculating the turnover, we have not yet calculated the return rate.

The return rate in the live streaming industry is also very serious. If the return rate is deducted, the hourly wage may be reduced by at least 70% to 80%.

This comparison only shows that the money earned from live streaming at present is still earned by working continuously or even overdrawing healthy working hours - it is far from the stage of making profits through high efficiency.

This way of working, which relies on individuals to overdraw their health, is not sustainable. And this is the situation for top anchors like Viya, so one can imagine the actual living conditions of other anchors.

Therefore, live streaming needs to find a sustainable way of working that allows the hosts who have been trained with great difficulty to have a healthy way of working, rather than relying on a working method of competing for the length of live streaming time (assuming that the hosts’ abilities are at the same level) as a business model.

2. E-commerce profits have been decreasing year after year. How to deal with it?

In recent years, the cost of doing e-commerce has risen sharply and is basically on par with that of physical stores.

A big cost of e-commerce is returns . The return rate of e-commerce is generally high, at least 50% for women's clothing and up to 80%, which is especially high during Double Eleven.

For general live broadcasts, the return rate is usually between 50% and 60% . Different products have different consumption habits. For example, the return rate of men's clothing is significantly lower than that of women's clothing.

The high return rate leads to an increase in subsequent operating costs, and the costs of the entire after-sales, logistics, warehousing, picking and inspection systems will increase. Moreover, the high return rate will eventually lead to inventory backlog, which has a huge impact on the company.

It is normal for e-commerce to have a high return rate. For women's clothing, consumers usually return products due to color difference, inappropriate size, dislike of the product, or not looking as good as expected, etc. Refunds based on actual quality are less than 1%.

The main reason for refunds is that customers have too high expectations, but sometimes high expectations are also caused by excessive exaggeration in sales, or the photos are not realistic and consumers are misled by the models.

Therefore, more and more businesses are now using models or anchors who are more down-to-earth and will not choose those with outstanding looks.

The high return rate is also related to the sales method . Most merchants encourage impulse consumption and excessive consumption at various sales nodes such as Double Eleven, or different sales channels such as live streaming. Sometimes, the reason for the high return rate is actually to get a discount, for example, a certain amount must be reached to use the discount, and then the product is returned after the discount is used. This has led to an increase in return rates.

What is the solution to the high return rate?

A better method is to accurately maintain inventory, appropriately extend delivery time, and sell in batches. Of course, the delivery time cannot be too long, otherwise it will reduce the enthusiasm of fans.

Another reason for the rising costs of e-commerce is the friction between paid traffic and the supply chain.

Generally speaking, the cost of a visitor to an e-commerce company is about one yuan, and the actual conversion rate is only 1.5 to 3 thousandths, so the investment in traffic is huge. In the early stages of training anchors, a large amount of money needs to be invested in purchasing traffic.

In the past two years, short videos have become popular for selling goods. Many businesses can achieve very high sales, but not many make money. Being able to break even is considered a success.

In the early stages, product selection, product sell-out rates, etc. are difficult to control, and the cost of trial and error is very high. E-commerce companies all have a supply chain adjustment phase, and the losses on the supply side are very large in the early stages.

Of course, this kind of loss can be reduced or avoided as operations and supply chain management become more mature. At the same time, the profits of e-commerce are getting lower and lower.

One of the reasons is that e-commerce prices cannot be raised. People generally believe that e-commerce has low costs and are used to buying cheap goods online. If the price is high, they will not accept it.

Nowadays, the prices of clothing sold through live streaming are generally low, and the profits are small. Brands currently mainly use live streaming to promote products and reduce inventory, which makes it difficult to generate high revenue through live streaming. For some live broadcasts, it is impossible to make money by purchasing goods from the market in the usual way, and they can only make profits by selling inventory goods at extremely low prices.

So now it seems that the risks of e-commerce live streaming are a bit difficult to predict because live streaming is updated and iterated too quickly. This requires manufacturers to adapt to new sales models and continue to innovate.

In addition to Taobao, there are now many emerging e-commerce platforms, such as Mogujie, Yilianwang, etc. The company needs to update outdated sales logic and specify product selection logic and sales plans for each platform separately.

Many brands hope to add new sales channels through various new platforms, but the reality is often contrary to expectations. This is precisely the result of the brand not being strong enough and not adapting to local conditions.

3. The rise of emerging technologies

In this section we discuss three examples:

Double Eleven logistics , facial recognition payment and AI’s application of consumer data allow us to experience new e-commerce technologies.

You may have noticed in recent years that the speed of Double Eleven logistics is getting faster and faster. How is this done? With the number of logistics orders doubling every year during Double Eleven, advance preparation alone is not enough to solve all problems. This requires another solution: sinking the goods in advance. Relying on Cainiao's forward warehouse system across the country, goods are prepared in advance in warehouses closest to consumers. As soon as consumers place an order, the goods will be shipped immediately from the nearest warehouse. This is Cainiao’s intelligent warehouse sub-warehouse technology.

For example:

For Three Squirrels Logistics, the gift package assembly business is a project with a large business volume. On Double Eleven, the flexible human-machine collaborative operation solution of manual loading, 2D/3D camera recognition and positioning, automatic grasping and feeding by robots, and AGV transportation costs to the packaging station was used to smooth out the peaks and fill the valleys of the fluctuations in the gift package demand plan, and also optimize the feeding link with low fault tolerance, which undoubtedly greatly improved the efficiency and accuracy of gift package assembly.

This year, mature products for facial recognition payment have also appeared. The combination of technology, competition, business and other factors, as well as the convenience brought by the seamless experience of face-scanning payment, are all directions that future payments are exploring. With the advent of the 5G era and the interconnection of all things, facial recognition payment has also been promoted. Face-scanning payment completely eliminates the need for mobile phones, making it possible for the blind, the elderly, and children without mobile phones to participate in this transformation of payment experience.

With the help of AI, we can analyze massive amounts of data and make better business decisions. The condition for realizing "machine thinking" is to have enough data to learn from. The richer the data samples and the more accurate the details, the smarter the artificial intelligence will be. As a shopping guide platform, "What's Worth Buying" has accumulated massive consumer data, including price data, price trends, price positioning, etc. of multiple products on multiple platforms, as well as data records such as users' recognition of product prices, and can closely monitor the price fluctuations of hot-selling products across the entire network. This will help companies better understand consumers and avoid wasting resources on "freeloaders".

Further reading: The impact of the epidemic on online and offline retail

The recent epidemic has had a great impact on the retail industry, and community group buying has become a new growth point. As for online, many people have reported that most of the customers who still purchase during this period are loyal old customers, that is, WeChat (private domain traffic) customers. It can be seen from this that the original accumulated old customers are very important and must be carefully maintained so that they can continuously bring you new customers.

IV. Conclusion

1. How to operate the private domain traffic of e-commerce live streaming more efficiently?

The definition of private domain traffic: traffic that is independently owned by a brand or individual, can be freely controlled, is free, and can be used multiple times.

Private domain traffic is similar to community operation. The private domain traffic of e-commerce live broadcast is generally based on WeChat groups and Taobao groups, and is mainly operated and maintained through interest inducement and high-quality content.

The core of private domain traffic is the maintenance of user relationships. To operate private domain traffic, first of all, there must be a good conversion channel, and secondly, we must consider it from the user's perspective and retain the traffic.

Why do we need private domain traffic?

• Prevent user churn.
• Improve conversion rate.
• Reduce marketing costs.

2. How can e-commerce live streaming seek new growth opportunities amidst the current fierce competition?

1. Advantages and disadvantages of e-commerce live streaming: Compared with online platforms, live streaming is more intuitive, more real, more interactive, and easier to gain the trust of fans. However, the disadvantage is that consumers cannot accurately perceive the product, are greatly influenced by the host's subjective feelings, and are prone to impulse buying.

2. Analysis of future development trends of the e-commerce live streaming industry. In recent times, due to the impact of the epidemic, the live streaming industry has developed rapidly. However, it is expected that in the next six months, live streaming will enter an adjustment period due to users' aesthetic fatigue, and industry shocks are inevitable.

3. How to combine private domain traffic operations and back-end resource integration to achieve new breakthroughs. Back-end resources refer to the product resources held by merchants. For example, the source of goods in an anchor’s supply chain is the back-end resources he holds. It can also be understood as a product. Supply chain management is a technical job. The anchor needs to understand his fan base so that he can choose products more specifically, and he also needs a strong operation team behind him.

An excellent Taobao live broadcast does not only depend on the anchor, but also on the teamwork of excellent anchor + excellent operation + product selection ability + supply chain sourcing.

3. With the rise of new online shopping forces, how can the e-commerce industry take advantage of it?

1. How do you view the importance of product matching?

Faced with the difficult problem of product matching, internet celebrities can form a perfect complement with factories, promoting mutual benefit. Internet celebrities, KOLs and factories are actually a very good complementary combination: Internet celebrities suffer from the inability to monetize their traffic, and factories have difficulty having products but no traffic. Internet celebrities can work closely with powerful factories. When a factory seeks to cooperate with an internet celebrity, it needs to first analyze the host’s fans to see if they correspond to the target audience of the product, and comprehensively measure the host’s real ability to bring products based on several aspects included in the weight. The anchor’s fans are as sticky as the star’s fans. The stronger the fan stickiness, the stronger the anchor’s ability to sell goods will be.

2. E-commerce profits have been decreasing year after year. How to deal with it?

In recent years, the cost of doing e-commerce has risen sharply and is basically on par with that of physical stores. A big cost of e-commerce is returns, followed by paid traffic and supply chain adjustments. At the same time, the prices of e-commerce products cannot be raised, and the selling prices of live broadcast products are generally low. Overall, e-commerce live streaming also has unpredictable risks.

3. The rise of emerging technologies Through the three examples of Double Eleven logistics, facial recognition payment and the application of AI to consumer data, we have experienced the rise of new e-commerce technologies.

In recent years, the speed of Double Eleven logistics has become faster and faster because of the use of intelligent warehouse distribution technology, which allows goods to be shipped in advance. The emergence of mature facial recognition payment products represents a new revolution in payment. With the help of AI, we can analyze massive amounts of data and make better business decisions.

Author: Leng Yun Fashion

Source: Leng Yun Fashion