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Network Marketing &Nbsp; Can Not Afford To Run Errands.

2011/12/16 11:33:00 44

Internet Marketing Can'T Afford To Run Errands.

Recently, Jingdong mall changed its past "no cost".

Sale

Mode, announcement issued 39 yuan free shipping.

threshold

It ended the era of "free shipping" which has lasted for more than a year.

In this regard, some netizens who like online shopping can not help complaining that the free services provided by the electricity providers may be less and less.

yes

Shrinkage cost

"Winter" signs, or rational regression? Perhaps, the surface prosperity of the electricity supplier market has been behind the crisis.

Invisible Waves


  


 



 


 


 


  

Logistics cost

High power providers "good people are hard to do"


On the afternoon of November 22nd, Jingdong mall CEO Liu Qiangdong posted a message on Sina micro-blog: "I'm going to be scolded by everyone tonight! Alas...", as we speculated, Jingdong mall issued a notice of distribution policy adjustment at 7 p.m.: from November 25, 2011 onwards, it charges 5 yuan for orders less than 39 yuan.


Since the beginning of this year, the collective price of private express has increased. Many electric suppliers sigh that the third party logistics with high quality of delivery is too expensive.

According to an electricity supplier executives, the delivery fee of SF to the electricity supplier is 22-25 yuan on average, the city express is 15 yuan, and the other place is more than 25 yuan: "if the service price of SF can be reduced by 30%-35%, I can still accept it."


The high pressure of the cost of the third party logistics has made the major suppliers start building their own logistics.

Jingdong, Holle, suning.com, Amazon, Gome mall and so on have already owned their own logistics system.

At present, nearly 20 thousand of the Jingdong's distribution personnel, 72% of the order to achieve the autonomous distribution, its storage centers in the country add up to 500 thousand square meters.

In the next 5 years, Jingdong will also spend 20 billion yuan -300 billion yuan to develop logistics in four cities such as Beijing, Shanghai, Guangzhou and Chengdu.


For Jingdong such platform providers, they can use the scale to dilute their logistics costs, but for vertical categories,

Online retailers

For example, the scale is still a difficult threshold.

And self built logistics e-commerce enterprises are also feeling the pressure of rising costs.

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The industry expects: due to the rising cost of logistics and promotion, the operation space of e-commerce industry has been squeezed.

This means that the threshold of e-commerce is gradually improving, and competition will further accelerate. Businesses with tight capital chains may become victims of the "shuffle" industry.


Li Chengdong, an analyst at dispatch network, said that at present, the processing capacity and storage capacity of Jingdong are seriously inadequate. The existing resources can not keep pace with the development of the business, and Jingdong has been operating at full capacity.

"Jingdong warehousing center is now operating 24 hours without interruption, usually two shifts, promotion time three shifts, logistics and delivery capacity is insufficient."


Why does it cost 39 yuan for free shipping?


Since last year, the "free freight" has been used by Jingdong, Dangdang and excellent three electricity providers to fight the book price war.

Subsequently, the "free shipping" has gradually become the standard of B2C electricity supplier. All kinds of electric providers have been trying to catch up with each other. It seems that they can not do the whole field without shipping charges. They are embarrassed to call B2C.


But unlike 3C digital products, the price of books and department stores is relatively low, and the lower unit price means that a considerable portion of the distribution effort has to be dispersed into a large number of low price orders.


On the Jingdong, a large part of the order of less than 39 yuan is books and small electronic products.

The average price of books is 25 yuan, and the gross profit margin is about 15%-20%.

This means that the gross profit is only 5 yuan per book.

The gross profit of small electronic products is only about 5%.


Warehousing logistics is calculated according to each package, and the customer unit price does not matter much.

As a result, the low price order, the gross profit of the electricity supplier all contribute to the logistics company.

For small orders, the gross profit is almost swallowed up by the express fee.

The more orders, the greater the loss.


Li Chengdong believes that the additional 5 yuan can only balance North express and so on.

Beijing logistics cost per 5 yuan calculation, last year Jingdong logistics distribution costs at least 145 million yuan.

This figure is probably just the tip of the iceberg of logistics costs.

What's more, the average 5 yuan is only the delivery cost in Beijing's three rings, that is, the lowest logistics distribution cost.

If we consider the allocation of warehouses outside or outside the five rings, the distribution cost will reach 10~15 yuan.

The industry believes that in recent years, the frequent launching of "free freight" and other logistics wars is a way of "losing money and making money", which will bring huge cost pressure to the enterprises themselves, not a permanent solution.


Xu Yong, chief consultant of China express information network, believes that the threshold of 39 yuan and the distribution cost of 5 yuan are calculated by Jingdong mall according to its own situation, which is relatively reasonable for Jingdong mall.


Return to money, the essence of victory is tomorrow.


Logistics distribution has become an important criterion for measuring online shopping services.

In the vast majority of electricity providers are still using the third party logistics distribution, Jingdong mall's self distribution system has covered more than 70% orders.


At present, Jingdong has implemented self distribution in 183 cities, providing door-to-door self financing, cash on delivery, POS card swiping and after-sale door-to-door service, and has launched the "211 time limit" service in 22 cities. At present, Jingdong has 70% of its own logistics and distribution volume.

At this point, Jingdong will cut down the low unit price order, which will help resources tilt to high-quality orders and quality customers.


After the implementation of the charging policy, Jingdong will also follow up on its services. Jingdong announced that it expects to achieve self logistics distribution in more than 300 cities in 2012, and that the "211 time limit" service city will increase to about 35, and the core area will be delivered three times a day.

This adjustment and distribution strategy is also considered by the industry as a measure to reduce the cost of Jingdong.


Prior to the speech, CEO, Bi Sheng, who spoke at the China Europe Business School, poured great pain on electronic commerce. While publishing all the costs of logistics, return, advertising and so on, he said that the e-commerce industry prospered, but in fact, it was a serious loss of money making. It was a totally unprofitable mode. Appealed to peers to calm down and return to the essence of business is to make money.

For the view of Bi Sheng, Jingdong mall CEO Liu Qiangdong thought "every sentence is the truth", but Liu Qiangdong also said, "difficulties will always exist! The industry will finally usher in a bright future! Now the electricity supplier is in the old horse (Ma Yun) said tomorrow evening! Persists for five years, will arrive after the day! Hope colleagues do not lose heart."


 


 

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