Author | Lao Gao
01
In the past two years, many merchants have told me that they can’t do e-commerce on Douyin, and their ROI is not high or even lose money. What should I do when faced with this situation?
Not long ago, the Golden Guan Club held a party in Guangzhou. A brother sighed: Douyin is volatile. Don’t look at their performance of 10 to 20 million yuan a month (sales) may become one to 2 million yuan next month.
This is a huge challenge to his stocking and supply chain.
Another problem is that when doing Douyin e-commerce, the return rate is very high !
Two days ago, I met a merchant selling watches. He sold 400 million yuan in a live broadcast room of an internet celebrity, but returned 200 million yuan, which means that the actual payment was only 50%. The return rate of women's clothing category is even more exaggerated, and some merchants can return 70%!
This is a great test for his after-sales service.
Most people can't stand this kind of fluctuation, especially those merchants who are used to platform e-commerce, who are not able to adapt to the rapid response of Douyin, because on platforms such as Taobao, Tmall, and JD.com, the performance changes of merchants are slow and gradual.
I found that there are only two types of people who can do well in TikTok: one is individual entrepreneurs, and the other is large startups. The team has strong fast response capabilities, including supply chain and customer complaint response capabilities.
September 2023, Guangzhou, billion-level seller exchange meeting
02
This year I went to a park in Hangzhou and saw that most of the live e-commerce companies had been withdrawn, and the park was empty.
Why?
Not making money.
Facts have proved that the merchants have been tortured to have no interest in participating in the live broadcast room of Internet celebrities. If they are fucked by the platform and then fucked by the live broadcast room, they have to be humbled by the Internet celebrities.
A certain internet celebrity even threatened that "it is not the lowest price on the entire network, don't sign up."
This is boring. I will give you discounts on internet celebrities and the lowest price on the entire network. Why can’t I directly give my customers the lowest price on my fans?
The platform calls on merchants to broadcast on their own, which is funny again. Letting merchants and brands broadcast on their own is tantamount to letting Li Kui embroider . I found a little girl to play and sing in the live broadcast room, but it was actually less and less effective.
I communicated with many businesses and mentioned live streaming to sell goods, everyone sneered at it and was helpless.
So I judge that the live broadcast room of Internet celebrities will definitely decline in the future, including the digital live broadcast that has emerged recently. There are three or four projects coming to me, and I don’t invest in any of them. The most attractive thing about live broadcasts is the real people and the real emotions. You have to have the whole robot girl chat there, which is meaningless. Think about it, if one day you open the live broadcast on Douyin and are all digital people, will you lose the fun?
03
Many businesses asked me, what should I do if I can’t do well in Douyin?
I don’t think I need to do Douyin now, just do my own goods well.
Why do many Taobao, Tmall, and Douyin merchants now like Amazon very much? Amazon does not even have customer service, and even live broadcasts. It means explaining the product details page clearly, and then consumers are optimistic about the product and buy it directly.
These merchants are almost tortured to death by domestic e-commerce platforms because some links are unnecessary. If you insist on them doing live broadcasts and playing music and singing in the live broadcast room, it is against public opinion and will not last long.
Last month, I had a drink with Douyin executives and were talking about this. They said that live e-commerce has been judged as a non-key business by Douyin. In the future, Douyin’s focus will be on shelf e-commerce, including Douyin Mall and Douyin Supermarket.
Everything depends on its essence. I think e-commerce is returning to the so-called traditional e-commerce, returning to search e-commerce , allowing merchants to do their job well, make products well, describe the product on the details page well, do after-sales well, and make paid investments well.
What the platform needs to do is to serve merchants well and not to bother them .
END
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