"Please log in to the merchant's back office as soon as possible to activate the store, and launch at least 5 new products this week..." Seeing the notice of successful store opening sent by SHEIN, Lao Cai said laughingly that I will have another title of "SHEIN semi hosting merchant" in the future.
In 2023, with the popularity of full trusteeship, Lao Cai, who has more than ten years of experience in integrating industry and trade, will take it as the first step to transform into cross-border e-commerce, and take advantage of that trend to get through the full trusteeship link of TEMU and SHEIN.
In 2024, the wind of semi trusteeship will still blow to cross-border people. AliExpress launched the first shot of online semi trusteeship, and commission free and cash subsidies attracted a large number of businesses. Then Alibaba International launched B2B semi trusteeship, and TEMU launched semi trusteeship in the United States, which became the focus. Recently, SHEIN tested the water and semi trusteeship, and it was fully open to settlement. [In 2024, when entering the semi trust mode, how to select platforms, modes and products? Connect with the hottest semi trust resources, Click here Express registration for Temu official summit on June 26]
"It's better to enter the site sooner or later than earlier". With such an idea, Lao Cai followed the pace of the platform and plunged into the flood of SHEIN semi trusteeship with his own supply chain advantages.
In fact, "the predecessors planted trees and the descendants took advantage of the cool" also met the occasion in the half custody battle in the first half of the year, especially "after AliExpress went online for half custody, there were more than 20000 merchants whose orders increased by more than 100% in just one month". To some extent, it is not to create momentum for other platforms to launch half custody business.
Lao Cai wondered whether 2024 would become the "first year of half custody"? What kind of twists and turns will his desired cross-border e-commerce industry experience in this year?
Hurry or wait?
Everything has two sides. Full custody has lowered the threshold for merchants to go to sea, but Lao Cai has also experienced the risk of low price competition and overstocking.
In particular, after the popularity of full trusteeship, all kinds of disputes follow closely. For example, the right to speak is held by the platform, and businesses that need transformation like Lao Cai cannot do it in person.
"In some ways, it goes against my original intention of transformation, and I may have to change the track." Lao Cai sighed. Under semi trusteeship, businesses can play a certain degree of subjective initiative in logistics and pricing. "Less passive" is also a major reason why Lao Cai chose semi trusteeship.
Seen from the semi hosting models launched by AliExpress, TEMU and SHEIN respectively, AliExpress prefers merchants and brands with self operating capabilities. Merchants retain pricing rights, and the platform helps merchants handle cross-border logistics. As a result, businesses are no longer constrained in operation.
TEMU and SHEIN are more similar in the semi custody mode, and both tend to take into account the merchants who have goods overseas, but their pricing strategies are different.
TEMU holds the pricing power in its hands, which may be to continue to attack overseas crazily with low price advantage. SHEIN has made a concession on pricing - the vendor provides the supply price, the platform and the vendor negotiate the pricing, and the situation of platform price depression and profit margin compression may not be repeated.
In addition, the goal of semi trusteeship of each major platform is obviously a mature business. At present, it is known that Zhiou Technology, Songe Shares and other big sales have been added to TEMU semi trusteeship.
In his communication with peers, Lao Cai found that the SHEIN half custodian has also attracted some sellers who have stocks overseas and are eager to clear up. Some Amazon boutique sellers, brand sellers and independent station sellers are either preparing to test the waters or have already entered the market.
Amazon seller Alex received an official semi hosted beta invitation from SHEIN in May. "There has been a saying in the circle of friends that Amazon is actually the Whampoa Military Academy of TEMU and SHEIN." Alex told Hugo that once TEMU and SHEIN blow the new horn, the Amazon Reserve Army will be able to start soon.
Over the past month, Alex's orders have gradually stabilized, and he has also figured out the operational problems such as delivery and after-sales. While Lao Cai had always been determined to transform when running through the full custody link, he established a professional cross-border e-commerce operation team, focused more on product upgrading and brand building, opened up the cross-border logistics link in advance, and personally went to the United States to inspect overseas warehouses.
After TEMU launched the semi trusteeship in March this year, he did not immediately join, but continued to settle down. "To form a team, upgrade products, and open up logistics is actually to prepare for the order explosion of the latter semi trusteeship," Lao Cai said.
Of course, some businesses choose to wait and see for a long time. "Since the beginning of full trusteeship, many businesses have entered the market, but eventually lost out in the weak profits. The early dividend of semi trusteeship is considerable, but it is not a long-term choice, and it needs to be tested by time and practice." Such a statement is not uncommon.
"This for this" delivery or just needed by semi trusted merchants
When Lao Cai talked with the investment manager of TEMU before, the other party revealed one reason why TEMU was eager to launch semi custody: "The full custody air transportation package mode restricted the shipping of large products, but under the semi custody mode, merchants using overseas warehouses to ship goods could solve this problem well, and filled the gap in large products on the platform."
The new model has brought new growth opportunities for new categories, but the introduction of the semi hosting model has left the problems that cannot be solved by the platform to businesses.
Alex said that not all merchants have accumulated pallets overseas, and even if they are well stocked, they cannot be guaranteed to sell. Only a few powerful big sellers will stock up in large quantities in overseas warehouses and have perfect distribution capabilities, but this is not something small and medium-sized merchants can achieve overnight.
Brand C of Zhejiang Ningbo Daimai Haoya Home ostway The sales volume of TEMU half pipe reached 100000+in three months after joining TEMU. It was easy to break orders. In fact, it solved the above problems.
Picture: TEMU Costway Store
Hoya moved from B2B to B2C based on the East China Home Furnishing Industry Belt, and merged into Amazon and other cross-border e-commerce platforms to expand its global business. In 2012, Hoya laid out overseas warehouses in a forward-looking perspective.
After the layout of half pipe, the product category C covers furniture, outdoor products, kitchen equipment, appliances, etc ostway It has accumulated overseas pallets. With the support of its overseas warehouse, it can easily solve the problems such as large volume, high value, heavy weight, difficult distribution, and expensive freight of large products, and has become the "1 Bset Provider" of TEMU outdoor hiking.
In fact, both TEMU and SHEIN hope to improve the shopping experience of consumers by improving the efficiency of local logistics.
Under the TEMU semi custody mode, the platform requires that the merchants' time limit for proper delivery is "promised delivery time limit"+"delivery time limit". If the merchants set the time limit for delivery to be one day, then the time limit for proper delivery needs to be 3 to 6 days. SHEIN semi custody reduces the logistics performance time to 7 working days.
"TEMU and SHEIN semi trusteeship prefer overseas and local merchants with goods, and their requirements on logistics performance time limit have virtually eliminated some of them, 'This to this' delivery may become a new demand for semi trust merchants. " Alex told Hugo Cross Border.
The overseas warehouse is the core infrastructure for local performance. If no suitable overseas warehouse cooperation is found, Alex does not recommend that you join the semi custody. "The overseas warehouse is more complex than the domestic small package direct delivery and full trusteeship models, with different categories and different markets. When choosing the logistics provider for the overseas warehouse, businesses should consider various factors, including inventory management, logistics distribution, after-sales service, etc."
In the second half of the year, especially in the peak season around Christmas, once the performance ability of the third-party overseas warehouse fails to keep up, coupled with the frequent strikes outside Shanghai, the massive delay in logistics timeliness will also cause fines.
If the merchant cannot make a correct judgment on the compliance qualification of the overseas warehouse logistics provider, and the overseas pallet is not perfect, then facing the dividend of semi custody, he can only look at it but cannot start.
Is it finally the turn of the great wealth to go overseas?
From roll products, to roll supply chains, to roll overseas warehouses... "roll to the end" may be the fate of cross-border people?
At present, Merchant self built overseas warehouse and third-party overseas warehouse They are two common modes of overseas warehouse. The former is needless to say, and Legge and Haoya Home are the best among them. They have already reached the ceiling. Small and medium-sized sellers with weaker strength prefer third-party overseas warehouses.
Rocky, an overseas warehouse logistics provider, told Hugo that at present, There is a certain mismatch between the supply and demand sides of overseas warehouses ， Or say The supply and demand of overseas warehouses show Grading situation.
On the one hand, due to the low operating costs and the characteristics of rapid response to the market, the demand of small parts warehouses has been significantly improved; On the other hand, the demand for large warehouses is growing continuously, but the supply is relatively scarce.
In February this year, Amazon adjusted the logistics distribution fees for large and medium-sized products, which made many sellers find it more cost-effective to use overseas warehouses for large products.
Under the half pipe vent, Alex believes that the influx of merchants will make overseas warehouses hot. Overseas warehouse logistics providers also need to think about how to catch this wealth.
Rocky said that the overseas warehouse should ensure fast product delivery, accurate distribution and perfect after-sales service. Especially in the current data era, it is a shortcut to improve the system from data.
For example, according to the sales data of TEMU and SHEIN, we can predict the sales proportion of large and small parts, judge the inventory demand of products, and communicate with merchants in a timely manner according to the platform orders to increase the inventory of current hot selling products.
It is also particularly important for semi custodians to select overseas warehouses with appropriate geographical locations. "We plan to optimize the distribution routes of overseas warehouses according to the logistics policies of different platforms, help businesses reduce costs, and reduce the pressure of being fined." This is actually the next step for Rocky to optimize the service of overseas warehouses. "In short, overseas warehouses need to have higher operational capacity and management level, which is the long-term way."
However, Rocky also revealed that some overseas warehouse logistics providers are also suspected of cutting leeks. They may attract merchants with low prices, or praise the half trusteeship extremely. If the merchants get hot headed, they find that the transportation capacity of overseas warehouses is insufficient, and the platform will delay delivery and other penalty measures will come.
In addition to the efficiency of overseas warehouse operation, it is also a problem for businesses to balance the inventory cycle and the rise in storage costs caused by unsalable goods.
Of course, for businesses, the ecological layout of overseas warehouses under the half pipe tuyere brings not only new challenges, but also new opportunities.
As an Amazon seller with many years of cross-border e-commerce experience, Alex has steadily increased the number of orders since he entered SHEIN semi custody. The next step is to open the door to future multi platform distribution by improving overseas warehouse pallets. "Even if semi trusteeship goes down in the future, it will be a confidence to copy the product supply chain and overseas pallets to the new platform," he said.
Lao Cai, who has the advantage of supply chain, believes that under the semi trusteeship model, doing a good job in product upgrading, warehouse expansion and warehouse building, and strengthening the ability of brand building can also achieve the transformation he has always wanted to follow.
epilogue
After the cross-border e-commerce practitioners went through the stages of goods distribution and fine distribution, and then to today's full trusteeship and semi trusteeship, each evolution and evolution is not short of the first batch of people to eat crabs.
Of course, new crabs are not all good. Full trusteeship was once in hot debate. Problems such as warehouse explosion, logistics delays, fines and so on once made businesses suspicious of life.
Moreover, once semi trust was launched, many full trust businesses found that the traffic and policy of the platform had been tilted to semi trust. Some businesses even speculated that whether TEMU or SHEIN full trust businesses would undergo a major reshuffle in the next six months.
Half custody is not the end of the evolution of cross-border e-commerce industry, but who can guarantee that today's full custody will not be tomorrow's half custody? As Alex said, if every outlet is regarded as a life-saving straw, the mentality will eventually be unstable. How to stabilize each link of products, supply chain and logistics under the new business type and mode, so as to achieve the goal of raising troops by fighting, is a compulsory course for every cross-border person.
(Cover source: Tu Chong's creativity)
(Source: Qingbo)
