On February 22, Fasthand E-commerce released an announcement that, due to the change of the cooperation agreement between the third-party e-commerce platform and Fasthand, from 00:00 on March 1, 2022, Taobao Alliance's commodity links will not be able to release commodity and service links in the shopping cart, short video shopping cart, business details page, etc. of the Fasthand live broadcast room.
At the same time, JD Alliance's product links will not be able to publish product and service links in the shopping cart of the fast broadcast room, but can publish product and service links in the short video shopping cart, business details page, etc.
Express e-commerce said that in order to ensure the consumer experience, it is recommended that the merchants do a good job in settlement and after-sales order processing in advance, and do a good job in commodity acceptance through express stores as soon as possible.
An analyst told the 21st Century Business Herald reporter that the move of fast hand e-commerce means that after March 1, 2022, the e-commerce transactions in fast hand live broadcast rooms will be fully closed on the fast hand platform, and in terms of short video content, fast hand has also reserved an outlet of the external chain for JD Alliance.
Another person familiar with fast hand e-commerce said that in recent years, fast hand e-commerce has been constantly reducing the proportion of the external chain in the entire e-commerce transaction, because the ecological closed-loop is the best choice for both business management and consumer services.
In fact, before the fast hand, Tiao Yin had already achieved the closed-loop trading of live broadcast e-commerce.
In recent years, live broadcast e-commerce is undoubtedly one of the fastest growing fields in the Internet industry. QuestMobile recently released the 2021 China Mobile Internet Annual Report, which shows that the use time of short video has increased from 21% in 2020 to 25.5% in 2021, and the share of instant messaging has decreased from 23.4% in 2020 to 21.2% in 2021, which means that short video has surpassed instant messaging and become the industry with the longest network time.
The top camp of short video industry is firmly occupied by byte system and fast hand system. Thanks to the rise of short video, the usage time of byte system and express system users has reached 21% and 10.2% respectively, second only to 35.7% of Tencent system, and more than 7.7% of Baidu system and 6.7% of Ali system.
Behind the traffic, there is huge commercial value. Fast hand and dithering have successively entered the field of live broadcast e-commerce, and the core purpose is also to realize the traffic.
At the initial stage of development, the traffic depression formed by short video platform has become the cake coveted by traditional e-commerce platforms. At the same time, short video is also very willing to achieve "win-win" through cooperation with traditional e-commerce platforms in the process of rapid development.
Therefore, both Tiaoyin and Fasthand have reached cooperation with Taobao, JD and other external platforms when they initially launched e-commerce business. With the help of these cooperation, Tiaoyin and Fasthand also soon became capable of e-commerce transactions.
However, with the development of e-commerce business, especially the live broadcast e-commerce, the short video platform has also realized a problem. If it only provides traffic, it will become a diversion tool for other e-commerce platforms, completely channelized. This is not what the short video platform hopes to see. Therefore, the self built e-commerce platform has become the focus of the short video platform in recent two years.
In October 2020, after the cooperation with Taobao expired, Tiaoyin announced that the shopping cart in the broadcast room would no longer support goods from third-party sources; Before this announcement, Fasthand also announced in November last year that it would no longer support products from third-party channels such as Youzan and Magic Chopsticks.
In this adjustment, Fasthand will completely cut off the external chain from Taobao and Jingdong in the live broadcast room. At that time, Fasthand will achieve a complete closed loop of the live broadcast e-commerce ecology like Ditto.
Will cutting off the external chain have some impact on fast broadcast e-commerce? The above analysts told reporters that the impact would certainly be there, but it has been negligible.
According to the third quarter financial report of Fasthand in 2021, the proportion of external platforms in Fasthand e-commerce has been very low. In the third quarter of 2021, the total amount of fast hand e-commerce transactions was 175.8 billion yuan, with a year-on-year growth of 86.1%. Among them, as a closed-loop model of fast hand e-commerce business, the contribution rate of fast hand stores to the total amount of e-commerce transactions increased from 71.4% in the third quarter of 2020 to 90.0% in the same period of 2021.
This shows that in the third quarter of last year, the proportion of goods from external platforms in the whole plate of fast hand e-commerce was only 10%, which may be lower now. Not only that, the transactions of external platforms include not only live video e-commerce, but also short video e-commerce. At present, fast hand has not completely cut off the external chain of short video ecology.
Therefore, cutting off the outer chain has little impact on fast hand. On the contrary, after the realization of closed-loop, fast hand can achieve 100% control over live broadcast e-commerce.
According to the reporter, as the self operated e-commerce platform of Fast Retailer, consumers can directly purchase products and services in Fast Retailer like visiting traditional e-commerce platforms, and there will be no great difference in consumption experience.
For the express platform, closed loop means that it can supervise the quality of products sold by express stores, and can also establish a credit system for the platform sellers, which greatly improves the management ability of express e-commerce.
In 2021, the three key words of fast e-commerce are: trust e-commerce, brands and service providers. In the view of Fast Retailers, trust is the cornerstone of Fast Retailers. If Fast Retailers want to continue to develop, they must ensure that after every transaction, the trust relationship between fans and anchors is growing.
And building a closed-loop model of e-commerce ecology is also an important measure to quickly strengthen trust. However, the closed-loop model also means more investment in assets. Many business links that were originally entrusted to external platforms need to be undertaken by the fast hand itself.
For example, Fasthand now needs to attract more brands to settle in, build a service provider ecosystem service provider, and constantly improve all aspects of the entire e-commerce transaction. According to the data disclosed by Fasthand at the end of 2021, in the second half of 2021, the repurchase rate of new users of Fasthand e-commerce will increase by 10%, and the repurchase rate of stores opening trust rights will increase by 12%. In September 2021, the repurchase rate of fast hand e-commerce will exceed 70%.
In terms of brands, as of November 2021, the number of new brands settled in fast e-commerce has increased by 186.1%, and the brand self broadcast GMV has increased by 841%. At the same time, in 2021, 33 brands will pay more than RMB 100 million for GMV and 60 brands will pay more than RMB 50 million for GMV.
Therefore, for fast hands, cutting off the external chain is just a new start of their live e-commerce business. A senior insider of the live broadcast business once said that live broadcast e-commerce has never been a traffic business, traffic and commerce are two things, traffic is just one element, and commerce is a combination of various elements to create value.
Therefore, when the short video platform gathers all e-commerce traffic to its own platform, how to do a good job in the follow-up business is the real challenge they have to deal with.
