Is it difficult for Taobao e-commerce merchants to enter the Douyin track? How to do Douyin e-commerce?

What is the development direction of e-commerce in 2022? The answer is undoubtedly - Douyin e-commerce; then is it difficult for Taobao e-commerce merchants to transform into Douyin e-commerce? What should Douyin e-commerce do?

1. Take a closer look at the development of Douyin e-commerce in recent years

In the first half of 2021, Douyin's monthly active users exceeded 600 million. In terms of app maintenance costs and traffic distribution, Douyin has been actively discounting and spared no effort to attract e-commerce merchants. Some merchants have revealed that Douyin has not made any promises to support it on the surface, but the commission rate charged to e-commerce merchants is lower than that of Taobao and Tmall.

According to the report on Double 11 in 2021, Douyin, which has the top 1 user channels in the mobile e-commerce industry, accounts for 44.6%.

In recent years, Douyin e-commerce has gradually improved the basic supporting facilities of e-commerce and built a content and e-commerce ecosystem. It is not only a promoter of Chinese traditional culture, but also a main hatchery for new consumer brands.

Taking the "2021 Douyin E-commerce Domestic Product Development Annual Report" as an example, the sales volume of new brands on Douyin e-commerce platforms increased by 933% compared with the same period. New brands are constantly innovating independently, and high appearance and cost-effectiveness have become important selling points. Since the development of Dou brand project, it has helped more than 100 brands to explode in sales.

With the rapid development of Douyin e-commerce , more and more domestic brands have entered, new brands and old brands have influenced each other. New brands rely on the platform to continue to innovate, and their competitiveness has been continuously improved. Centennial-old brands have obtained new sales volumes based on independent innovation, and have introduced new Douyin launches and building independent brand tracks to enhance brand competitiveness.

2. Logic of Douyin e-commerce traffic distribution

The "horse racing" mechanism of Douyin instantly triggers traffic rules. The bottom layer on Douyin is nothing more than the logical thinking of finding hot products. Whether it can become hot products determines your own natural traffic level; everyone must make themselves have the potential for hot products, thereby increasing the traffic pool. The faster the traffic pool is, the more overall traffic is.

In the current mechanism of Douyin, if you want to instantly detonate traffic, you can pay more attention to the following aspects:

1. People who can handle free traffic are most suitable for payment;

2. The real purpose of Douyin advertising is to make the live broadcast room maintain the "herd effect" and maintain popularity at all times, so that it can truly detonate more and more traffic.

3. Be good at using TikTok tools:

We should be good at using every tool provided by Douyin. Looking at the popularity trend in the past 5 minutes is a good reference. We must learn to perceive the live broadcast of the whole audience.

4. In the early stage of attracting traffic, sales speech must be colorful and logical thinking.

What factors activate the traffic pool?

Generally speaking, if an account wants to activate the traffic pool, it must focus on the following 6 most important points, namely: average residence time, interaction rate, conversion rate, fan conversion rate, shopping cart click rate and like rate; as long as we do these 6 rates well, we can continuously activate the traffic.

3. What are the advantages of Douyin e-commerce?

Traditional e-commerce platforms are all emphasizing content and social media, constantly improving internal live broadcast rooms and short video information flow. Various content platforms are trying to live broadcast to sell goods, transforming content popularity into consumer behavior. The e-commerce market is becoming more and more crowded, and consumers have more and more choices.

The advantages of TikTok are very obvious and difficult to replicate:

1. Huge user base and its diversity of users;

2. Perfect recommendation technology and distribution technology;

3. Platform governance ideas for sustainable development;

At the beginning, Douyin only cooperated with Taobao to guide potential customers to Taobao and reached a deal. The reason why it became a potential customer is that Douyin’s short videos and live broadcasts display products differently from other platforms, and can affect consumer consumption well;

In addition, customers' love for Internet celebrities has further stimulated their consumption. Therefore, Douyin has used this advantage and launched the Douyin Store platform. With the advent of 5G, Douyin can play its advantage more; the platform policy is strongly supported, with the large traffic and a long dividend period, Douyin will only develop better and better in the future.

Douyin e-commerce launched the incentive policy for improving merchant product information in March, and it was officially launched on February 28, from 0:00 on March 1 to 24:00 on March 30, 2022. Merchants will have the opportunity to improve product information and exposure opportunities. They can also divide up millions of total traffic subsidies for completing tasks. Optimizations here include: traffic acquisition, order conversion, event promotion, standardized operation, etc. It is understood that the higher the basic score of the product, the higher the possibility of product exposure.

4. Disadvantages of traditional e-commerce platforms

Traditional e-commerce platforms all have one disadvantage, that is, the traffic distribution is unbalanced. 80% of Taobao’s platform traffic is concentrated in the top, and small and medium-sized merchants can allocate very little traffic to the platform;

At this stage, the traffic of the entire Taobao site has declined severely. Most of the traffic has been divided up by top internet celebrities and big sellers. Small and medium-sized sellers have almost no traffic, but Taobao Express is getting more and more expensive.

Many senior sellers who have been doing Taobao for more than ten years have encountered such a thing, which can be said to be "disheartened". This is why many sellers are gradually entering Douyin and regard Douyin e-commerce as their second development direction.

5. Douyin e-commerce "extends" and seeks change

Compared with Taobao, Douyin e-commerce has performed the most stable, thanks to the extension of Douyin video to various stages of e-commerce. Douyin e-commerce continues to extend its industrial chain and open up the entire link of e-commerce development. Douyin Payment is launched, eliminating the possibility of "bottlenecks" in third-party payment methods.

In freight logistics, from switching to connecting multiple express companies with independent electronic faceplate to internal testing of door-to-door delivery services, Douyin has been more perfect in the construction of the logistics system; the "Douyin Box" APP has explored a new consumption model and launched "Safe Shopping" to further protect consumer rights.

6. Relying on Taobao genes to quickly enter Douyin video

First-tier brands should take advantage of the momentum, seize the potential period, and join Douyin e-commerce as soon as possible;

Brands should first consider from the customer perspective and see clearly people’s perception of Douyin live broadcast platform. "Entertainment Life" is the biggest gene of Douyin. Big brands can create content from a "novel" perspective to attract users' attention;

Brands need to do a good job in e-commerce platforms. The consumption habits cultivated by e-commerce platforms over more than ten years will not be destroyed casually;

Douyin's e-commerce business process has developed rapidly in recent years, and Douyin's traffic distribution is relatively fair. These are related to its decentralized platform traffic mechanism. The platform will never allow a leading internet celebrity to own most of the traffic on the platform. Many merchants should quickly seize the opportunity and enter Douyin e-commerce.