Cross-border e-commerce sellers, have you heard of it? After fully managed, semi-managed is here again! So how does this model work? Is it worth it for sellers to enter the game? Next, let's find out with the 18** chain!
It is understood that Pinduoduo cross-border e-commerce Temu is about to launch a "semi-managed" business, which is planned to be launched on the US site on March 15, 2024, and the European site will be opened at the end of March. At present, the semi-managed model of temu has been opened for investment, and there is no restriction on categories.
The wind of the "fully managed" model has not yet been completely completed, and "semi-managed" is not far behind. Full custody has always been considered a new revolution in the field of cross-border e-commerce, which is beneficial to many factory-based sellers, reduces everyone's investment in operation, promotion, logistics, etc., and can concentrate on product quality control, design innovation and other work.
The previous "full custody" model was first proposed by Temu, which did attract a group of factory-based enterprises that wanted to enter cross-border e-commerce, but did not have a complete operation team. Seeing this big cake in the field of full custody, only Temu is exclusive, and later AliExpress, Lazada, Shein, TikTok Shop, etc. have also launched a full custody model.
The fully managed track was crowded with people, and Temu found another way to start a "semi-custodial" business. In fact, this semi-custody is a bit similar to the Amazon FBA model, both of which are shipped by the seller to overseas warehouses, but the difference between semi-custody is that if the seller issues an order, he will be responsible for delivering the goods to the buyer.
All in all, the semi-managed model requires sellers to have the ability to stock and ship goods locally overseas, but this is not the ability for many small and medium-sized sellers. Relatively speaking, this model is more suitable for those large home furnishing sellers who stock up in overseas warehouses.
In addition, one of the criticisms of Temu's semi-custody model is that the pricing power is actually in the hands of the platform, and the buyer's price reduction will squeeze the profit margin of the merchant to a certain extent. At the same time, this also puts forward new requirements for the performance logistics of the merchants themselves, and the performance timeliness must be well controlled, if the platform requirements are not met, it will be followed by the platform's fines.
Temu's semi-custodial model has broadened its business path to a certain extent, but for platform merchants, there are pros and cons, and everyone has to weigh it according to their own situation. Which model of cross-border e-commerce do you prefer?
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Cross-border e-commerce
Editor of this article: Xiaoba.