China's Alibaba is pressuring merchants to offer rock-bottom prices on its marketplaces in this year's Singles Day extravaganza, three industry sources said, as the e-commerce company seeks to boost sales and stem a drop in market share.

Alibaba banks on aggressive Singles Day pricing to recoup sales mojo

This article explains how to find, install, and manage VS Code extensions from the Visual Studio Code Marketplace. This will show you a list of the most popular VS Code extensions on the VS Code Marketplace. Each extension in the list includes a brief ...

Extension Marketplace

Tmall Taobao World today kicked off its 2023 Taobao Tmall 11.11 Global Shopping Festival ("11.11" or "Festival") with enhanced deals and offers targeting five key markets, including Hong Kong ( China ),

Taobao Tmall 11.11 Global Shopping Festival Returns with Launch of New Cross-Border Shopping Service Brand

The iPhone 15 and 15 Plus were selling at steep discounts to their official retail prices on Alibaba's Taobao platform Sales of the iPhone 15 series have been weaker than its predecessor in China, according to market consultancy Counterpoint Research Apple's new iPhone 15 series is already subject to steep discounts on Chinese e-commerce websites in the run up to this year's Double 11 online sales extravaganza,

Apple iPhone 15 already being discounted on Chinese e-commerce sites in run up to Double 11 sales festival

Apple’s latest flagship smartphone, the iPhone 15, is being offered at steep discounts by some of China’s leading e-commerce platforms, such as Pinduoduo and Taobao, amid signs of sluggish sales in the world’s largest smartphone market. The Discounts ...

iPhone 15 Faces Price Cuts in China Due to Weak Demand

Walmart is banking on its third-party online marketplace to boost holiday sales. While Walmart is the biggest retailer, its e-commerce business is still much smaller than rival Amazon. Online ...

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Miss something this week? Don't panic. CBC's Marketplace rounds up the consumer and health news you need. Want this in your inbox? Get the Marketplace newsletter every Friday. A 47-year mortgage?

47-year mortgages; Big chains promise grocery relief: CBC's Marketplace cheat sheet

Read More. Facebook Marketplace is a popular platform for people who want to buy or sell used items. With more and more shoppers browsing the site, the number of scammers on the platform has also ...

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Corporate Assessment Services Market - Covid-19 Impact and Recovery Analysis: We were monitoring the direct impact of covid-19 in this market, further to the indirect impact from different industries.

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Get the most recent info and news about Taobao Marketplace on HackerNoon, where 10k+ technologists publish stories for 4M+ monthly readers.

Launched in May 2003, Taobao Marketplace (www.taobao.com) is the online shopping destination of choice for Chinese consumers looking for wide selection, value and convenience. Shoppers choose from a wide range of products and services on Taobao Marketplace, which features hundreds of millions of product and service listings. Taobao Marketplace was China's largest online shopping destination in terms of gross merchandise volume in 2013, according to iResearch. In addition, the Mobile Taobao App was the most popular mobile commerce app in China from August 2012 to July 2014 in terms of mobile monthly active users, according to iResearch. Taobao Marketplace is a business within Alibaba Group.

Taobao Marketplace

It was 1994. Jack Ma, an English teacher from Hangzhou, China, heard about the Internet and managed to fly to the US to experience it by himself. In 1995 Jack started his own website development company. In 1999 he created , a business-to-business marketplace connecting Western businesses to Chinese manufactureres. Alibaba Today Alibaba grew to a group making $15 billion of revenues. Jack Ma is the richest man of China, with an estimated net worth of $24 billion. “Our proposition is simple: we want to help small businesses grow by solving their problems through Internet . We fight for the little guy. Since our founding in 1999, we have helped millions of small businesses to achieve a brighter .” technology future More than 80% of Alibaba group fortune is coming from their eCommerce platform in China. Founded in 2003, is a fee-free marketplace targeted to small merchants where neither sellers nor buyers are assessed a fee for completing transactions. The nearly 7 million active sellers on Taobao pay to rank higher on the site’s internal search engine, generating advertising revenue for Alibaba that resembles Google’s core business model. Taobao According to Zhang Yu, the director of Taobao, the number of stores on Taobao with annual sales under $15k increased by 60% between 2011 and 2013. Over the same period, the number of stores with sales between $15k and $150k increased by 30%, and the number of stores with sales over $150k increased by 33%. https://youtu.be/XfivA1HvHZY In 2008, Alibaba group launched (Taobao Mall), a platform oriented to larger businesses and brands. Unlike Amazon, Tmall itself does not sell the goods directly but it facilitates transactions between the buyer and the seller. In this case, Alibaba charges a commission between 2% and 5% with a business model near to the one of AirBnB, which became the largest hotel chain without owning a single hotel. Tmall Overall, Taobao and Tmall are counting for 80% of all online purchase in China and made a profit of 44% in 2013, while by comparison Amazon made a 0.8% in the same year. Alibaba does not sell products themselves. Instead, they offer a web platform that facilitates the exchange of goods. They’re the world’s largest eCommerce company, but they’re actually much more like a software house than a shop. Software tends to scale much better than warehouses do. Furthermore Alibaba understood that its success depends on the success of its sellers. In 2007 they launched their own consultancy company, Alimama, to support their sellers with a range of services such as customer segmentation, product positioning, marketing campaign, and more. We believe that putting (…) the traditional business just purely online — that’s not called e-commerce. In the future, business will not make money because of the scale, it’s because of the value — the different value — created. (…) I checked Amazon. They have $52 billion but they still do not make money, so ‘scale’ does not make any sense. Jack Ma

The last ten years have seen a sea change in the world of consumer packaged goods, as nimble digital-native brands have built empires off the maturation of e-commerce infrastructure and the proliferation of social content channels (e.g. Instagram, Snap, etc.). Changing consumer values in younger buyers and the opportunities afforded by those content channels have transformed the meaning of consumer branding. But this revolution in commerce and marketing has left behind brands that excelled at selling to older consumers through the traditional media channels of print and TV. They’ve been doubly disadvantaged: as incumbents they’re also reluctant to leave behind their tried-and-true practices; and their core customers were not early adopters of social media, so there was little incentive to experiment and get better. With social media now stretching far beyond young early adopters, however, has that changed? Can brands reach and acquire older customers through social media? Marketing and advertising has long obsessed over capturing the hearts, minds, and eyeballs of the young — hence the attention paid to the . But there are compelling hard-money reasons to pay close attention to older consumers — they are, counter-intuitively, a growing class. McKinsey in 2016 that the older adult population in developing countries would grow by a third through 2030 and account for half of urban consumption growth during that period, valued at $4 trillion. Given that many older consumers are retired, they have more spare time on their hands, which might explain McKinsey’s finding that they spend 25% more time shopping per dollar spent than their younger peers do. That extra time might find an outlet in the expansive brand identities cultivated by consumer companies of the last decade. Tech giants are starting to sit up and take notice: Alibaba’s consumer-to-consumer marketplace, Taobao, an app specially designed for the older consumer in early 2018, for example. historically coveted 18–34 demographic estimated rolled out The issue of social channels and acquiring older customers boils down to a few key questions: ● Do enough seniors actually use social media? ● Do seniors shop online? ● Are seniors open to brand appeals through social channels? Do enough seniors actually use social media? Contrary to some advertisers’ opinions, seniors are people too, and much like the rest of humanity they have migrated to platforms like Facebook. Particularly Facebook, if we take this as firm evidence. Pew Research gives us slightly : Facebook is overwhelmingly the most popular social media site for non-millennials. 65% of those aged 50–64 and 41% of 65+ used the site. The next most popular platform was Instagram, with 21% and 10% respectively. subreddit more scholarly backing More and more seniors have taken to social platforms over time: found that, in 2017, 34% of seniors used social media, up from 8% in 2009. According to , older demographic usage of social media is not only broadening, but deepening. The proportion of total weekly media time spent on social media by the 50+ crowd increased 64% between 2015 and 2016. It was the largest increase seen across any demographic. Pew that social media usage among seniors broke strongly across income lines, suggesting that the seniors brands most want to reach — those who can afford to buy lots of stuff — are the most reachable. Less than a quarter of seniors making less than $30,000 per year use social media, while nearly 60% of the $75,000+ set do. Pew Nielsen also noted Do seniors shop online? Ecommerce has broad penetration across generations, but . 90% of shoppers aged 18–29 had purchased something online, while 59% of 65+ had. 77% of 18–29 had used their phones to purchase something online; only 17% of 65+ had done the same. 24% of 18–29 had bought something through a social media link; only 5% of 65+ had participated in this kind of social commerce. social commerce differs significantly So seniors are a growing class of consumers on social media that does shop online. So it’s theoretically possible for brands to reach them and push purchase decisions before they depart a digital storefront. But is it really feasible for brands to acquire older customers through social channels? Are seniors open to brand appeals through social channels? It looks like an uphill struggle. will only shop at their favorite food-and-beverage stores, and prefer traditional versus experimental packaging. Research on older adult consumer habits (albeit from 2010) shows that they switching brands after establishing a favorite. In the fragrance market, women tend to be to their perfumes as they age for example. More than half of seniors actively resist stay loyal longer These findings suggest that the cost of acquiring older customers is significantly higher than for millennials or Gen Z. And this in a time of soaring CACs across social channels writ large. They do, however, also suggest that if you get an older customer on your side, they will be likely to be more brand loyal over time, relative to other customers. This presents an interesting opportunity for established brick and mortar and established brands to cross-sell new products within existing, trusted brand umbrellas to older consumers through social media campaigns. CoverGirl is a brand pursuing this strategy: hiring older women, such as 70-year-old , to represent the brand as CoverGirls. Musk — yes, as in Elon Musk’s mother — has , and appeals to those followers as a long-time nutrition entrepreneur and model. The campaign used traditional channels, featuring a , but the message incorporated plenty of digital marketing as well. Lancôme brought — an Italian actress, model, and artist — back on board as the face of the brand. Thirty five years after she was first announced as the face of Lancôme. Critically, these moves are changes in messaging rather than channel innovation. Maye Musk nearly a quarter of a million Instagram followers video commercial Isabella Rossellini Maye Musk, Elon’s famous mum, is a famous face of CoverGirl cosmetics The main takeaways? The sliver of the senior population that brands want to reach — those with disposable income to spend — are networked in the social sense. Facebook is the best platform for reaching them — this conclusion is reinforced by the of marketers who’ve tried to reach this demographic. While most older consumers have bought something online, they’re unsurprisingly much less likely than their younger peers to have purchased items through their phone or a social media link. testimony Despite the fact brands could reach older adults online or through social channels, the rising cost of customer acquisition on such platforms — and the fact that older adults are less likely to switch away from their preferred brands anyway — means it might be worth sticking to marketing in the analog world when thinking of selling to the 50+ demo. Sunny Dhillon is a founding partner at Signia Ventures, a $85m seed and series A venture capital firm based in the San Francisco Bay Area. He invests in consumer and enterprise startups. He previously worked as the first business development employee at a venture backed spin-off of New Line Cinema, directly for the Lord of the Rings trilogy producers (hat tip to Mark Ordesky), as well as in corporate strategy for Warner Bros., before launching one of the App Store’s first location-based apps and starting Signia Venture Partners in 2012. “You can also always tweet me your thoughts, follow me on Medium , or learn more at my personal website .” Originally published in Forbes and reposted on Linkedin . Special thanks to Signia’s Alex Lloyd George for his help on this article.

InstaGrandmas: Is Selling To Seniors On Social Media Worth Your Brand Dollars?

Search Google for the highest revenue-generating e-commerce stores, you’ll find names like , etc. All these online stores work on different business models but the one common thing among them is that they are all multi-vendor marketplaces. Amazon, eBay, Walmart, Airbnb Considering the popularity of multi-vendor marketplaces, many aspiring entrepreneurs now want to launch similar stores like . However, starting an e-commerce marketplace is not a walk in the park. In this post, I will try to explain each and every thing about online multi-vendor marketplaces. Amazon, eBay, or Airbnb What is a multi-vendor marketplace? An online multi-vendor marketplace is a platform where various merchants from different locations sell their items or products under a roof. The owner of the marketplace handles the transactions work, whereas inventory is managed by the sellers. Interesting Stats about Online multi-vendor marketplaces: Based on gross merchandise, Taobao is the most popular online marketplace in the world. Amazon is the leading marketplace in the USA. More than 300,000 third-party sellers started selling on Amazon in 2017. A better price is the leading reason why people prefer to buy on online marketplaces. 31% of first-time shoppers prefer to buy on online marketplaces. Revenue cut by marketplace operator is the leading reason why merchants prefer to have their online stores. Stats source: statista.com How does a multi-vendor marketplace work? Sellers register on the marketplace. It can be a paid or free registration. Customers or businesses can buy the products from their choice of the seller. Admin can charge a certain fee on each transaction. Payment is transferred directly to the admin account. Admin after deducting his commission transfer the rest of payment to seller’s account. Product delivery can be handled by both seller and admin. In the case of a faulty product or any query, the customer can complain directly to the seller or on the online portal. Must Read: As digitisation becomes a necessity for B2B, so will marketplaces Types of multi-vendor marketplaces Mainly, there are 3 types of online multi-vendor marketplaces. B2B marketplaces are those where the sellers sell products to other businesses at a wholesale rate. are the popular B2B multi-vendor marketplaces. B2B multi-vendor marketplaces: Alibaba or Walmart B2C multi-vendor marketplace is a platform where various sellers sell their products or services to customers on sale. are the popular names in the online B2C marketplaces. B2C multi-vendor marketplaces: Amazon or Flipkart C2C marketplaces are those where customers can sell their products or services directly to other customers. are the best examples of C2C marketplaces C2C multi-vendor marketplaces: Ebay, Taobao Revenue Sources for a Marketplace Owner There can be multiple revenue generation channels on an online marketplace. However, it can be changed depending upon the nature of a business. By selling their own products. By selling paid subscription services like Amazon Prime. A certain commission on each transaction. Monthly or yearly subscription charges from sellers for selling on the portal. Through paid advertisements. Display featured products. By affiliate programs. How Products and Services are delivered in multi-vendor marketplaces? On most multi-seller marketplaces, products are delivered to the customer by the admin. In some business models, sellers also deliver the products by hiring a logistics team. The buyers get the products or services directly from sellers. For example: Make My Trip. Why multi-vendor marketplaces are preferred over single stores Benefits for sellers or vendors: Readymade traffic. No website setup & managing cost. Better opportunities to market their products with a brand value. Benefits for customers: Variety of products. Get the best deals. Better price & quality products. Benefits for the Marketplace Owner: Higher profits through different revenue generation channels. No inventory management headache because the sellers take care of inventory. Because every seller will be managing his shop on their own, you don’t need to hire people to do this. Must-have features in a multi-vendor marketplace Separate vendor pane Product import/export Rating and review system Fast search functionality Features products option Shipment of products by vendors Customer-to-vendor communication Push notification for vendors Products listing and management through a mobile app Automated task processing Reporting and data analytics for admin and sellers Integration with third-party tools Registration pages for customers and sellers Detailed product listing pages Digital wallet and multiple payment gateways Multi-lingual and multi-currency feature in case of geographic targeting Bulk order feature for B2B marketplaces Multiple levels of administrative access Responsive Design SEO friendly platform Mobile apps for customers & sellers How to start an online multi-vendor marketplace You can start a multi-vendor marketplace either by building it from scratch or using the readymade solutions. Building a multi-vendor marketplace from scratch is a time-consuming process and requires a lot of investment. However, with the help of readymade solutions, you can launch a multi-vendor marketplace in a few hours and without any technical knowledge. Here is a list of best turnkey multi-vendor e-commerce platforms: YoKart When it comes to starting a multi-vendor marketplace, Yokart stands high. It is a dedicated to easily launch ecommerce marketplaces like Amazon, eBay, Alibaba, etc. The platform offers 1-year free technical support and free installation on all packages. multi-vendor marketplace platform High user interface & attractive design Multiple payment gateways Fully customizable & scalable platform Real-time shipping cost calculator Product catalog system RTL language support Customers to vendors communication Mobile apps for customers and sellers User-friendly dashboards for admin and sellers Shuup Shutup is a new entrant in the multi-vendor industry. The platform offers many attractive features that make it stand high in the list of multi-vendor solutions. Separate vendor pages Product catalog system Single checkout Easy order management Customizable Search Engine friendly Responsive design X-Cart X-Cart is a popular open source e-commerce platform. With X-Cart you can easily start single or multi-vendor stores. Separate vendor panel Customer to vendor communication Act on behalf of a vendor Individual commission rate for each vendor Built-in layout editor Product catalog system To see the detailed feature comparison of top multi-vendor platforms, read this post: https://www.business2community.com/ecommerce/top-multi-vendor-platforms-to-start-an-online-store-like-amazon-ebay-02181880 Share your thoughts in the comments section in case you want to add any information in this post.

How to Launch a Successful Multi-Vendor E-commerce Marketplace

With great power comes great profit, and then even the innovative get fat and lazy. This was the paradigm pre 2000s. Rome rose and fell. Microsoft’s monopoly was cracked. created the digital camera and kept it from customers. Kodak The bigger they are, the harder they fall and the harder they fight. But historically failure was inevitable — no man, country or company ever reigned supreme in perpetuity. Chaos and innovation simply would not allow it. Fast forward to today. We are entering a world where this may no longer be the case. The companies of today are infinitely more powerful and resourceful than the empires and industry moguls of old. Established, valuable networks are nearly impossible to create, replicate or overcome. A 10% upgrade isn’t enough, you need 10x. Historically this was hard but inevitable. New changes and technologies propelled era after era out of existence at rapidly increasing rates (recently much in relation to Moore’s Law). Today is different Unlike even 10–15 years ago, tech giants are creating the bulk of the wealth and innovation in the economy. Companies like , and Amazon have more money than most small nations and more control than any one government, should they so choose. Facebook Google These giants don’t just fight competition, they destroy it. The leaders of today have learned the lessons of old and acquire promising startups often and early to protect their own ass. They have the most talent, the most money, the most data and no moral quandries with flat out copying competitors. Copy and paste In an era where user experience is everything and data is king, how can startups compete? US Anti Trust laws are dated. They define monopolies not by their power and control, but by negative impacts (specifically price gouging) experienced by customers. When you search for dinner and Google shows you your favorite restaurants, knows your preferences, suggests a great vegan cafe and books you a table, how can consumers complain. It is seamless, “Google just gets me.” But Google scraped ’s database, showed reviews, cloned an and booked a place, all without leaving your search browser. And guess what, the government does not care. Yelp OpenTable Let’s not even start on Snapchat and Instagram. Snap’s growth has flatlined and Instagram appears unstoppable. Try it before you buy it Almost all giants have all been accused of Microsoft like monopolistic tendencies. They lure startups in with talks of acquisition, pick apart the tech, pass on the deal and build it in-house. Then thanks to network effects and enormous, engaged user bases, Facebook, Amazon and Google can deploy and dominate the market — just ask . DAVE MORIN And when Google and Facebook control the channels where startups acquire customers, a small tweak to the algorithm ensures their competitors drift in obscurity. Sounds like anti-trust is in order. But… More powerful than govt And this is why we find ourselves attending congressional hearings on the alarming power of tech and its ability to influence elections ( ). on a sidenote, America has aggressively influenced dozens if not 100s of elections worldwide so it is hard to really whine about being on the receiving side Source: Kremlin Press Page But these hearings and debates are a joke. The regulators assigned do not understand the underlying issue — network effects and user experience. Amazon’s a great example of this. Amazon aims to kill all 3rd party sellers, yet brands CANNOT afford not to sell on Amazon ( ). The rewards are too great. Like eating fastfood, it is great in the short term and deadly in the long run. more on this here By building the West’s strongest ecommerce marketplace (Alibaba and Taobao in China are actually stronger), Amazon has become untouchable. Brands have to play ball and so do the regulators. Imagine the senator or congressman who costs his district a shot at Amazon’s 2nd HQ? No point running for re-election then. Consumer’s love Amazon. It is fast, easy, cheap and convenient. You can order ANYTHING at the click of a button and have it delivered ASAP. [LIKE THIS ARTICLE SO FAR? THEN YOU’LL REALLY WANT TO SIGN UP FOR MY NEWSLETTER — AND GET SOME FREE BONUSES!] OVER HERE Too big to fail The banks got bailouts because they screwed consumers, made money on bad loans and were too big to fail. They did everything wrong and were rewarded. At this point Amazon, Facebook and Google are the utilities of today. Shutdown Amazon and millions of merchants lose their livelihoods. And customers would rebel. How else can I get my subscription toilet paper delivered? Plus ~70% of internet traffic goes through AWS. Can you imagine the economic ramifications of in essence turning off the internet? And what about Google? Google search accounts for 77–80% of search traffic. Google Chrome is the most popular browser with 44.5–63.6% of all users (depending on source). And Gmail is no different with over 1B monthly active users — email is the lifeblood of most businesses…. Don’t forget Youtube, and Google Maps, and your calendar… oh, and all of Android. Facebook is the same thing. Families and friends would be literally ripped apart. Experiences lost, billions of family photos forgotten… Between Facebook, Messenger, Whatsapp and Instagram, controls billions of individuals and owns ALL of their data. Mark Zuckerberg When you get used to a rare luxury, it goes from being scarce to being something you cannot live without. Any of these 3 companies could cripple the internet, the American government and the world economy at large. During the Cold War we called this equilibrium Mutually Assured Destruction. Speaking of Russia… Source: Wikipedia Social Engineering and News One of the fascinating effects of social media and our connected world is the rate at which news and information spread. Yet as we’ve seen, facts can be falsified. Propaganda is the use of biased or misleading information to promote a political cause or point of view. And it has never been so influential. People are inherently lazy. They read the headline and skip the story. And due to the nature of clicks and impressions and the flaws with modern media and “journalism”, we’ve incentivized a culture of click bait and intellectual garbage. I don’t have an answer for this. But the algorithms are driving this change. As traditional journalism dies, something MUST take its place. And the terrifying thought concerns the power and control of these colossal companies. Zuckerberg has 2.1B+ MAUs. What happens when a megalith tech company starts to push the limits or censor negative and hateful content? The path to hell is paved in good intentions and absolute power corrupts absolutely (just look at politicians). These social dynamics make Facebook and Google nearly unassailable ( ). With the power to “control” the news, feature themselves and their products and billions of times more data, money and manpower, we could have created the ultimate tool to fascism. One man at the helm pulling the strings has more influence than Rupert Murdoch or Donald Trump. here’s Google’s one achilles heel Source: FBTutorial The big question Net-net, Facebook, Google and Amazon have been forces for good in the world. They have innovated, increased quality of life, access to information, family, friends, products, entertainment and more. But they are incredibly dangerous and likely not-regulatable. Are these short term problems or long term considerations? When will rubber meet the road? This level of control, wealth and power are not inherently destructive, but every empire eventually inherits an evil heir. Can you create a conceivable future where this doesn’t go horribly wrong? I can’t. Would love to hear your thoughts below? We didn’t even touch on AI, but artificial intelligence and it data constraints further strengthens the Trinity of Tech. Can blockchain and distributed systems disrupt the history’s most powerful and profitable monopolies ( )? Have we reached a point of no return? Am I overreacting entirely? j_oin our Cryptocurrency Round Table_ with Gil Penchina, Andy Bromberg of Coinlist, Joey Krug and Lou Kerner on 11/28 @ 11am PST. RSVP today This isn’t about answers, it is about questions and having an informed debate with smart folks focused on the future. So please share your thoughts below. And if you liked this article, subscribe to our newsletter to never miss a thing ( ). just opt in on the site Be sure to share this on social. People need to understand these issues and have a open debate on our future as a society. Before you go… If you got something actionable or valuable from this post, click the👏 button below and share the article on Facebook and Twitter so your friends can benefit from it too and Subscribe to get more.

Network Effects, Unstoppable Monopolies and The End of Innovation

Search Google for the highest revenue-generating e-commerce stores, you’ll find names like Amazon, eBay, Walmart, Ebay, etc. All these online stores work on different business models but the one common thing among them is that they are all multi-vendor marketplaces. Considering the popularity of multi-vendor marketplaces, many aspiring entrepreneurs now want to launch similar stores like Amazon, eBay, or Ebay. Also, the COVID-19 pandemic has fueled online sales of Amazon or other marketplaces. As per the stats, in the pandemic, Amazon received 35% of all online sales in the UK. The one primary reason people prefer to buy from multi-vendor marketplaces is the competitive environment, where a consumer has the leverage to compare products of different sellers and buy at the best price. However, starting a multi-vendor marketplace is not a walk in the park. In this post, I would like to explain each and every important thing of an online marketplace that definitely help you to start your multi-vendor store easily in 2021. What is a Multi-vendor Marketplace? An online ecommerce marketplace is a platform where various merchants from different locations sell their items or products under a roof. The owner of the marketplace handles the transactions work & logistics and whereas inventory is managed by the sellers. Interesting Stats about Online multi-vendor marketplaces: Based on gross merchandise, Taobao is the most popular online marketplace in the world. Amazon is the leading marketplace in the USA. More than 300,000 third-party sellers started selling on Amazon in 2017. A better price is the leading reason why people prefer to buy on online marketplaces. 31% of first-time shoppers prefer to buy on online marketplaces. Revenue cut by marketplace operator is the leading reason why merchants prefer to have their online stores. Stats source: statista.com How does a Multi-vendor Marketplace Work? Sellers register on the marketplace. It can be a paid or free registration depending on the marketplace owner approval. Customers can compare and buy the products from their choice of the seller. Admin charges a certain fee on each order. The percentage of commission can be decided at category level, product level, & seller by seller. Once the order is placed, the payment is transferred directly to the admin account. After the order is delivered and the product return period is over the Admin transfers payment to the seller’s account. However, in-case an online marketplace is integrated with automated payout options such as Stripe Connect, payment will be transferred to each seller account instantly after the order is placed. Admin deserve the rights to cancel any order. Product delivery can be handled by either admin or seller. In the case of a faulty product or any query, the customer can complain directly to the seller or on the online portal. Must Read: As digitisation becomes a necessity for B2B, so will marketplaces Types of Multi-vendor Marketplaces Mainly, there are 3 types of online multi-vendor marketplaces. B2B marketplaces are those where the  sellers sell products to other businesses at a wholesale rate. On B2B marketplaces, customers prefer to order in bulk quantity. Alibaba or Walmart are the popular B2B multi-vendor marketplaces. B2B multi-vendor marketplaces: B2C multi-vendor marketplace is a platform where various sellers sell their products or services to customers on sale. Amazon or Flipkart are the popular names in the online B2C marketplaces. B2C multi-vendor marketplaces: C2C marketplaces are those where customers can sell their products or services directly to other customers. Ebay, Taobao are the best examples of C2C marketplaces. C2C multi-vendor marketplaces: Also, there can be some other multi-vendor marketplace business types such as digital products marketplace, B2B2C marketplace, etc. that you can consider starting in 2021. Revenue Channels in a Multi-vendor Marketplace for a Business Owner: There can be multiple revenue generation channels on an online multi-vendor marketplace. However, it can be changed depending upon the nature of a business. A certain commission on each order per sale. Monthly or yearly subscription charges from sellers for selling on the portal. By selling paid subscription services like Amazon Prime. The marketplace owner can also become a seller in-case he/she wants to sell the products. Through paid advertisements such as PPC, Display ads, native content ads, etc. Display some seller products in the featured products sections Per order delivery commission in-case order delivery is managed by a third-party company How Products and Services are delivered in a multi-vendor marketplace? On most multi-vendor marketplaces, products are delivered to the customer by the admin. In some business models, sellers also deliver the products themselves or by hiring a logistics team. BOPIS (Buy Online & Pick in-Store) in the pandemic, this product delivery channel is the hottest trend, where a buyer order online and picked the product in-store. The buyers get the products or services directly from sellers. For example: Make My Trip. Why multi-vendor marketplaces are preferred over single stores Benefits for sellers or vendors: Readymade traffic No website setup & managing cost. Better opportunities to market their products with a brand value. Dedicated support Benefits for customers: Variety of products Get the best deals. Better price & quality products. Benefits for the Marketplace Owner: Higher profits through different revenue generation channels. No inventory management headache because the sellers take care of inventory. Because every seller will be managing his shop on their own, you don’t need to hire people to do this. Must-have features in a multi-vendor marketplace Important features from an Admin point of view: Product catalog to standardize inventory APIs to handle Accounting & tax management Real times shipping rate calculator and labeling Multi lingual & multi currency to sell in different locations Multi level administrative access Intuitive reporting and sales dashboard Multiple payment gateways & digital wallets Payment gateways like Stripe Connect in-case an online marketplace owner wants to automate seller payouts. Easy integration with third-party tools or APIs Advanced order management Customizable framework that allows them to scale as per their business requirements Important features from a seller point of view: Separate store for each vendor Inventory management and bulk products upload Flexibility to customize their stores Shipment of products by vendors Seller- buyer communication Vendors sales & analytic tools Dedicated support Automated tasks processing Mobile app Omni-channel inventory management Important features from a buyer point of view: Better customer experience Discount coupons Push notifications Rating & Review Order tracking Single checkout (Adding different seller’s products in the same cart) Mobile apps for easy access Easy returns management Other features such as product comparison, similar products, Wishlist, etc. How to start an Online Multi-vendor Marketplace: You can start an ecommerce marketplace either by building it from scratch or using the readymade solutions. Building a multi-vendor marketplace from scratch is a time-consuming process and requires a lot of investment. However, with the help of readymade or turnkey solutions, you can launch a multi-vendor marketplace in a few hours and without any technical knowledge. Here is a list of best multi-vendor e-commerce platforms in 2021: Yo!Kart When it comes to starting a multi-vendor marketplace, Yo!Kart stands high. It is a dedicated to successfully launch ecommerce marketplaces like Amazon, eBay, Alibaba, etc in 2021. It is a fully customizable ecommerce platform that comes with a wide set of features. multi-vendor marketplace platform Yo!Kart offers lifetime license and 1-year free technical support on all the pricing packages. Yo!Kart Best Features: Fully customizable & scalable platform Best user-interface & attractive design Multiple payment gateways Product catalog system RTL language support Mobile apps for buyers & sellers Pre-integrated with APIs like Stripe Connect, TaxJar, QuickBooks, ShipStation, etc. Guarantee to handle 1 million+ products Weakness: No free themes and addons Shuup Shuup is a new entrant in the multi-vendor industry. The multi-vendor platform offers many attractive features that make it stands high in the list of multi-vendor ecommerce solutions. Shuup Best Features: AR & VR related functionalities Product catalog system Single checkout Easy order management Customizable & flexible Search Engine friendly Responsive design Shuup Weakness: Highly expensive Paid customer support Cs-Cart: Cs-Cart is another powerful multi-vendor platform that was started in 2005. The multi-vendor software is used by thousands of businesses to build different types of online marketplaces. Cs-Cart Best Features Vendor payouts Advanced catalog management Order re-ordering Shipping and logistic management Ready Addons and themes Multi-shop functionality Cs-Cart Weakness For some basic functionalities, you will have to buy paid addons Admin and seller panels interface is not attractive X-Cart X-Cart is a popular open source e-commerce platform. With X-Cart you can easily start single or multi-vendor stores. X-Cart Best Features: Separate vendor panel Customer to vendor communication Act on behalf of a vendor Individual commission rate for each vendor Built-in layout editor Product catalog system X-Cart Weakness: You need a development team to manage the store Technical support is not completely free To see the detailed feature comparison of top multi-vendor platforms, read this post: https://www.business2community.com/ecommerce/top-multi-vendor-platforms-to-start-an-online-store-like-amazon-ebay-02181880 Share your thoughts in the comments section in case you want to add any information in this post.

How to Launch a Successful Multi-Vendor E-commerce Marketplace and App: 2021 Edition

In China, November 11th has evolved from a meaningless date to one of the most important days of the year. In 1993, four students at the University of Nanjing decided to hold a campus event for single students on November 11th, and the event quickly spread to more campuses across China. The day grew to be known as and was more of an informal celebration until e-commerce company Taobao (owned by Alibaba) held its first discount event on November 11, 2009. Single’s Day Twelve years later, Single’s Day has become China’s (and the world’s) biggest retail event, generating 12 times as much revenue as Black Friday. But the e-commerce industry is beginning to the e-commerce landscape in China is getting tougher in the face of increasing user acquisition costs, the rise of newer platforms like and (Little Red Book), and social media channels like (the Chinese version of TikTok) rapidly growing their e-commerce functions. The industry is constantly on the lookout for new ways to boost online traffic, and Alibaba’s firm belief is that the metaverse, virtual humans, and NFTs are the best means of driving the future growth of their online marketplace. That’s why the tech giant has launched a “Metaverse Art Exhibition” featuring 8 NFT art pieces as part of its 2021 Single’s Day campaign. Pinduoduo Xiaohongshu Douyin Despite the unimaginative name and Alibaba’s previous questionable NFT projects (like the mooncake NFT), curiosity got the better of me. I had to check this out. After all, almost every media outlet had reported on it, so it couldn’t be that bad. Right? The Summary Alibaba (or rather, AYAYI, Alibaba’s first virtual human employee) has worked with 8 brands, including global names like and as well local brands like , to create 8 different digital artworks that can be viewed in the Taobao app. Burberry Kiehl’s Xiaopeng Each artwork is also minted into a number of NFTs stored on the – for example, the Burberry piece has been minted into 1,000 NFTs which all look the same visually, but each with its own unique code. It’s worth noting that since China’s recent ban on the trading of NFTs, the word NFT does not come up in this exhibition at all – everything is referred to as a “digital collectible”. AntChain blockchain The User Experience Users can find the art exhibition by typing in “元宇宙艺术展 (Metaverse Art Exhibition)” into the search bar on Taobao. I was greeted by an image of the silver-haired AYAYI as the experience loaded, and then taken into a silver space that resembles the inside of a piece of quartz, but smoother and shinier (Is it just me, or does everyone seem to think the metaverse needs to look futuristic, pale, and shiny?). There are floating, transparent crystal orbs, each containing a different piece of “art”. Selecting on an orb allows a closer look at the piece of art (however, you won’t be able to zoom in on it), along with a description of the inspiration/story behind the work, as well as an option to “collect” the piece. A couple of the pieces also have an option to “experience in 3D”, but essentially all that allows you to do is spin it around and get a 360-degree view of the item (no, you still cannot zoom in on it). If you click on “collect”, you’re redirected to a page that looks just like any other product page you’d find on Taobao. The “Art” I had a little too much fun trying to translate all the names and descriptions into English. The copywriting team at Alibaba deserves a round of applause though – they’ve managed to come up with some pretty deep stories for the most unremarkable things. : A deer-like character with massive ears in a $400 USD Burberry scarf. : He has a great sense of style, an acute sense of the latest trends, and uses algorithms to determine the optimal outfit. The “elf” is AYAYI’s fashion consultant, and the oversized ears are supposed to help him better absorb all the information out there. (1000 NFTs minted, given at random to users who purchase a limited-edition physical Burberry scarf) Burberry’s “Digital Elf” Description Story : Kiehl’s mascot Mr. Bones chilling on liquid metal. : Mr. Bones has been tirelessly helping humans with our skincare routines since 1851, and he has decided to take a break. He rests on a flying carpet of liquid metal, tanning himself underneath a digital sun, not needing to worry about UV rays and skin cancer. Before he embarks on a new journey though, he needs to find his trusty Harley (I think the Alibaba team has somehow incorporated Ghost Rider into this.) (1000 NFTs minted, given at random to users who purchase a jar of Kiehl’s Ultra Facial Cream) Kiehl’s “One Thousand And One Nights” Description Story : The Alienware head in shining metal with glowing blue eyes. : The alien is a metaphor for the metaverse: mysterious, advanced, and obscure. In the metaverse, the metal of the alien’s head is interlinked with our thoughts – the more intense our thoughts, the brighter the metal shines. (100 NFTs minted, part of an exclusive Alienware X17 R1 gift set consisting of a laptop and an NFT) Alienware’s “Artery of Thought” Description Story Wuliangye’s “Milky Way” (Wuliangye is one of China’s largest liquor brands) : A translucent bottle of the finest Chinese baijiu liquor.
Story: Traditional Chinese alcohol takes on a new form in the metaverse – glowing gold and silver particles that have captured the essence of the stars in our galaxy combine to create a dazzling concoction. (9 NFTs minted, not available to individual collectors – wow, now that’s pretentious.) Description : A gaudy silver duffel bag featuring the P&G logo. : Packing could be a challenge for people moving into the metaverse, and P&G has taken it upon themselves to provide an easy solution. P&G is offering a “click and go” option, with a single click, all your beloved items and toiletries will be transported into the metaverse so you can begin your new life. (100 NFTs minted, users need to participate in a raffle and winners will be able to purchase the NFT for 1 RMB, the rough equivalent of 15 cents) P&G’s “Click And Go” Description Story : A black Xiaopeng car with bits of liquid metal flying off of it. : In the metaverse, cars are more than just a method of transportation – they’re a medium of expression. In this world, racecar drivers double as graffiti artists, adorning the skies with masterpieces created from speed and precision (1000 NFTs minted, given at random to users who purchase a test drive of Xiaopeng’s P7/G3i/P5 models for 1 RMB) Xiaopeng’s “Graffiti In The Sky” Description Story : Something that looks like a cross between a coloured contact lens and poisonous lily. : When a child is born in the metaverse, a Starry Flower will bloom. The Starry Flower grows from an orb of ice and metal, symbolizing the harmony between the virtual and physical worlds. (1000 NFTs minted, given at random to users who purchase Moody’s “Sky Disco” coloured contacts) Moody’s “Starry Flower Whispers” (Moody is a local brand that makes coloured contact lenses) Description Story Chando’s “Himalayan Ice” (Chando is a local skincare brand) : A bottle of lotion surrounded by a ribbon of liquid metal Description : Water is essential to our survival, and this potion pays tribute to the source of human life. Metal replaces water in the metaverse, and this potion combines two eternal elements to freeze time and deliver timeless beauty. (100 NFTs minted, users need to participate in a raffle and winners will be able to purchase the NFT for 1 RMB, the rough equivalent of 15 cents) Story The Verdict The exhibition felt more like a pre-beta test version of a partially developed project. The crystalline space was nothing spectacular, and the pieces were boring at best. What was disappointing was that most brands basically took a physical product, added some liquid metal garnishes, and called it a piece of art. It’s clear this was another one of Alibaba’s attempts to piggyback off the “metaverse” and digital art trend to drive more traffic to Taobao ahead of Single’s Day. That said, this confusing exhibition does provide a stellar and pretty comprehensive snapshot of China’s NFT landscape from a number of angles, including: The Consumer Even though the government has prohibited the resale of “digital collectibles”, those pieces sold out fast. I’m Chinese, and I know how pragmatic we Chinese can be (think Jessica from the TV series “Fresh Off The Boat”). I always wondered how Chinese consumers would treat NFTs, since most Chinese households don’t even own much physical art, but it’s clear the younger generation has a different understanding of value. And it makes sense – Chinese Gen Z have grown up with mobile games and buying in-game skins and merchandise for ridiculous amounts of money (certain skins in PUBG have been sold for nearly 200k RMB, that’s almost 30 grand in USD). Heck, China’s first virtual “idol” was created in 2012 and already made her way onto CCTV’s New Year Gala (an annual televised performance extravaganza watched by over 700 million people) in 2016, the year was created. Luotianyi Lil Miquela Anyways, if these awful NFTs can be accepted, just imagine what the reception would be for a quality NFT project. Sorry, “digital collectible”. 2. The Brands Personally, I think participation from big brands are key to paving the NFT road in China and bringing credibility to digital art. Why? Well, China can’t really rely on famous modern artists to create NFTs that’ll make people take the subject seriously, because there’s no real Chinese equivalent of Damien Hirst or KAWS. The most famous Chinese artists are the dead ones. In addition, giving out the virtual pieces as part of a special edition bundle consisting of an NFT and a physical good is a pretty smart way of getting us pragmatic Chinese consumers to feel like we’re getting a good deal. It’s great that Alibaba’s collaborated with a pretty decent range of brands for this exhibition. While luxury fashion house Burberry and global names like Kiehl’s and Alienware didn’t come as a surprise, I was pretty impressed to see an old-school Chinese brand like Wuliangye on the list. Although very few people under the age of 40 actually drink Wuliangye (it’s the alcohol of government officials and balding businessmen), it’s one of those brands that every Chinese person will know. It’s promising to see that influential local brands are keeping an open mind toward NFTs, and this will likely set the precedent for more brands to jump on the bandwagon in the near future. 3. The Government In China, general media sentiment is the best indication of the central government’s attitude towards an industry or trend. If you see mixed media sentiment and journalists actually daring to profess personal opinions about a certain subject (this doesn’t happen often), it usually means the government doesn’t care about the topic in question. Widespread neutral and objective reporting of the facts likely indicates that the government isn’t against the subject matter but is figuring out exactly what their stance is, which is why publications don’t want to take a stance either. If sentiment is very skewed in a particular direction, that direction is most definitely an accurate reflection of the government’s attitude. Despite the recent ban on the trading of NFTs, the metaverse exhibition in question received a lot of media coverage. No opinions, no commentary, just the facts. Completely neutral. And neutral is great because it means there is hope for NFTs in the future. The Chinese government isn’t really against the concept of NFTs or virtual art, but against unregulated and uncontrollable speculation which could destabilize the economy. It’s a fair point. Oddly enough, NFTs could help facilitate China’s goals if executed properly – President Xi has stressed the importance of promoting the development of China's culture sector to strengthen the public’s sense of fulfillment, happiness and security. So, as long as future “digital collectible” projects can prove that they’re contributing towards culture, I dare say there’s a lot of potential. (Now that I think of it, the fancy names like “Artery of Thought” and convoluted descriptions of the digital collectibles were probably intentional – there to emphasize that the pieces were created with a lot of thought, and not just a way to create meaningless hype) Overall, I was definitely disappointed. Disappointed, but happy. Because the fact that things like this are happening in China means that the country is keeping an open mind towards all the new possibilities out there. Now, it’s all about refining the execution. After all, an idea is nothing without great execution.

Alibaba’s Metaverse Art Exhibition is a Great Snapshot of China’s Current NFT Landscape

How new models of e-commerce can enable the Passion Economy Before becoming a VC investor, I worked as a Product Manager at Shopkick, a Greylock- and KPCB-backed shopping app that rewarded users for walking into retail stores. Our product roadmap was oriented around the holy grail of combining : enabling people to browse content in the app, share, and shop. Not only do the three factors in tandem create a stickier, more engaging experience that improves with more users, but all three are core to how users naturally shop: say they are more likely to purchase based on a social media referral. content, community, and commerce 71% of users In the US, dominant platforms typically have just two out of the three: Amazon is a wealth of commerce and content related to products, Tik Tok has community and content—but it’s rare to successfully integrate all three elements (they require very distinct DNA to do well!). Successful case studies include Glossier and Food52, while new startups like Supergreat for makeup and cosmetics reviews, Popshop for live video shopping, and Jumprope for how-to content are forging new models of social e-commerce. Coming soon: live shopping features on Instagram and Facebook A natural opportunity for social platforms that already serve as a hub for content and social connections—and which already spark purchase intent—is to allow users to seamlessly purchase. Facebook recently announced its intention to pursue that opportunity with and , which allow businesses to create storefronts that drive product discovery, all in a native shopping experience. In addition, Facebook is rolling out more features for Live Shopping: “Sellers, brands and creators will be able to tag products from their Facebook Shop or catalog before going live and those products will be shown at the bottom of the video so people can easily tap to learn more and purchase.” Facebook Shops Instagram Shops Facebook has a of attempts to move into payments and commerce, and this latest iteration is happening amid an accelerated transition from and a . long history offline sales to e-commerce softening ad market Many have been written about the announcement from a business strategy perspective, but I find it exciting for a few reasons from a consumer and creator angle: smart takes These features create new monetization paths for businesses and creators through selling products, providing another way to participate in the Passion Economy. Because brand sponsorships were mainly accessible to creators with large followings, the addition of e-commerce functionality should lower the barrier to earning income from the platform. As I’ve previously , the importance of individual brands diminish on aggregator e-commerce platforms. It’s to build a strong brand on Amazon because Amazon itself is the brand that consumers trust, and brands become secondary to signals like reviews and sort order. The antidote for brands is to leverage platforms that allow for accentuation of uniqueness and to build an emotional connection with consumers. For many brands, Facebook and Instagram already represent the discovery/storytelling piece of the e-commerce stack—and can enable brands to maintain more pricing power and resist commoditization. discussed challenging Facebook Shops and Instagram Shops represent a model of e-commerce that more closely aligns with consumers' natural shopping behavior, combining serendipitous discovery and social inspiration. Commercial activity is already happening on the platform, and these features are a more user-friendly way to support it. Today, the comments under many creators’ posts are peppered with commerce-related questions like, “Where is that dress from?” and users are left with the onus of finding the products elsewhere. Shops is interesting also from the angle of growing and Facebook’s revenue sources: the company’s revenue today is dominated by advertising, with just 2% of ARPU coming from non-advertising sources ( in US & Canada was $41.41; only $0.92 was from non-ads), and the same holds true across its entire family of apps. In contrast, there’s a ton of revenue to be unlocked through e-commerce: the average Amazon Prime subscriber, for instance, spends about per year on the platform. Facebook is well-positioned to be a major e-commerce player given that it has already aggregated demand and supply (2.6B MAUs, ). diversifying Q4 ’19 ARPU $1,400 140M small businesses Shops represent a natural evolution for Facebook and Instagram, and in many ways, are a step towards catching up to what Chinese counterparts like and have been doing for years. One prominent example of a social e-commerce platform in China is , which was founded in 2015, went public in 2018, and is now worth more than $87B as of June 2020. Pinduoduo’s success has been attributed to its social shopping model in which buyers leverage social platforms and receive discounts for , as well as its C2M (consumer-to-manufacturer) model in which manufacturers design and produce products based on user data, resulting in a more efficient development process. Pinduoduo is the 2nd largest online marketplace in China by number of users and number of orders, with 482M monthly active users, $145 billion in GMV, and $1.6B revenue in . Xiaohongshu Taobao Live Pinduoduo team purchases Q4 ’19 Interview with Ada Yang, International Corporate Affairs, Pinduoduo I recently sat down with from Pinduoduo’s International Corporate Affairs team to get her perspectives on social e-commerce in the US and China and to delve into how Pinduoduo is an enabler of the Passion Economy. Ada Yang Here are some of my top takeaways from the interview: . I was surprised to learn that nearly 15% of Pinduoduo’s GMV comes from products (which I had never thought of as being part of the Passion Economy!). Farmers on PDD are livestreaming while tending to their crops, building relationships with customers who care about where their food comes from, and earning a living by selling to a broader audience of customers beyond their vicinity. The Passion Economy is broader than what one might think , and encompasses all types of work where the worker/service/product isn’t just viewed as interchangeable and commoditized agricultural By removing intermediaries and cutting out middlemen, creators can benefit from higher earnings and consumers can enjoy lower prices. Ada shares lots of great examples of creators leveraging the platform to build a brand and earn a living through e-commerce. While Facebook & IG Shops are long-awaited and much-needed, they only begin to scratch the surface for innovation in e-commerce. Indeed, as Ada points out below, Pinduoduo considers itself part e-commerce platform, part entertainment app, and part social network, meeting multi-faceted user needs through different features. As we graduate beyond the intent-driven model of e-commerce—marked by table-like grids of products, filters, and search bars, there are opportunities to create new experiences that promote the sense of serendipity and fun of shopping in the real world. How has Pinduoduo been impacted by COVID-19? Like most businesses in China, Pinduoduo faced challenges during the peak of the COVID-19 outbreak earlier this year. We stepped up efforts to help the entire ecosystem of users, merchants, and our business partners. For instance, we helped factories that faced a hit to their export businesses to customize their products to sell to Chinese consumers. In February, we launched a “Help the Farmers” section on Pinduoduo to allow consumers to buy fresh produce directly from farmers in poverty-stricken areas. Since May, we’ve recovered to pre-COVID levels with 65M average daily orders, up from an average of 50M in mid-March. What are your thoughts on the recent news from Facebook regarding Shops? Facebook’s latest foray into social e-commerce bears resemblance to what Pinduoduo has been pioneering in China. We are at the beginning of a mega trend in e-commerce where we leave behind the legacy model of “search, pay, and leave” and move toward a more interactive, social recommendations-based model, such as what Pinduoduo has pioneered. At Pinduoduo, we’ve designed the online shopping experience to mimic the offline experience of browsing, getting recommendations and feedback from friends, and interacting with shop staff. I think with the introduction of Facebook and Instagram Shops, you will see a more direct example of how a recommendation model can be integrated with e-commerce. How does Pinduoduo relate to the Passion Economy and the idea of monetizing individuality? We believe in not just providing a platform for people to make a living, but also help them to build their own brands via connecting them to our 600M+ users. We have found that consumers like to know the stories and people behind the product. This appreciation for the work that goes into the making of a product often translates into higher sales. We’re big on putting creators and makers in front of the camera and connecting them with consumers directly, rather than spotlighting influencers who have little connection to the products they’re hawking. For example, a whose family has been in the tea business for generations was able to share that knowledge with Pinduoduo’s users through a livestream. He was able to build a following in the app and recently broke 1M RMB ($141K USD) in monthly sales, and in the process helped his family business undergo a digital transformation. university undergraduate Another merchant, , was similarly able to help boost his family’s business through Pinduoduo by connecting with users through a livestream and explaining how to choose high-end jewelry. Artisans in Shandong province show how they go about crafting woks, shaping the kitchenware by hand with a mallet. a demobilized soldier We’re continually launching new features to engage merchants and consumers. was launched in late 2019 and gives the stage to creators to showcase their work. Any content creator has the chance to broadcast their skills, from agricultural professors delivering , to farmers on the latest growing techniques, to vineyard owners providing online wine appreciation classes. Duo Duo Live online classes What are some surprising examples of workers in the Passion Economy who are enabled by Pinduoduo? . Agricultural sales represent nearly 15% of total GMV on the platform. Farmers are seldom seen or heard but have found their voice on Pinduoduo, which has become China’s largest agricultural e-commerce platform In mid-April, potato farmers in Shandong province hosted a livestreaming session, welcoming more than 600,000 users to visit their farms, virtually. It’s akin to the direct connection and relationship you might build with producers at a farmers’ market, but because of Pinduoduo’s digital platform, customers can purchase from merchants all over the country and enable them to become much bigger businesses. Users saw in real-time how farmers dug up potatoes and could purchase them through the platform. To date, Pinduoduo has held more than 100 livestreaming sessions in conjunction with more than 20 provinces in China to help local regions showcase their farm produce. The webcasts, many of which are helmed by farmers, have helped sell more than 350,000 metric tons of produce directly to consumers, By reducing the layers of intermediaries and their associated costs, Pinduoduo has helped raise farmers’ incomes while allowing users to enjoy lower prices and fresher produce. The cost of an onion in the supermarket (left) vs. Pinduoduo (right) are 5.9 RMB/500 grams and 8.6 RMB/2.5kg, respectively. Savings are achieved via bypassing intermediaries and selling direct-to-consumer, a journey that is chronicled in this YouTube video . How does Pinduoduo differ from e-commerce platforms we’re familiar with in the US? Pinduoduo’s model is designed to more closely mimic how people interact, exchange feedback, and share recommendations when they shop in real life. interactive e-commerce / social commerce Much of legacy e-commerce is based on the conventional search-based, transactional model. But this is increasingly not how most people prefer to shop, either online or offline. . Imagine spotting a nice dress while passing by a shop window or telling a friend about a bargain. Pinduoduo integrates the social aspects of shopping, the interactivity of the process between friends and between shopper and sales assistant, into the user experience. Aside from certain shopping use cases that are truly intent-based (e.g. you are out of toilet paper or pasta and need to replenish) much of shopping in the physical world is actually quite serendipitous We have features like which inject fun into the shopping experience. It’s a game within the app where users can tend to virtual fruit trees and be rewarded with a free box of fruit from Pinduoduo once their virtual tree is fully grown. As of March 2020, logged on to play the game. Duo Duo Orchard 60M daily active users Is Pinduoduo first and foremost an e-commerce platform, social network, or an entertainment app? Pinduoduo is a co-mingled space between the virtual world and the physical world, where users can find the best value-for-money goods. Given that we have more than 600M users and 5M merchants interacting in this space, it’s less useful to put a label on it and say that we are one or the other. Perhaps the best way to understand it is that we are here today precisely because we have created a space that meets the different and evolving needs of our community, whether that’s social interaction, commerce, or entertainment. Why do you think US platforms lag behind in combining commerce, content, and community? There are several aspects to the development and innovation of China’s e-commerce industry that differ from other regions of the world: 1. Many of China’s internet users skipped the desktop internet era and went straight to mobile. With close to 900M people having access to the internet via mobile devices, this has created an important base condition for the proliferation of mobile e-commerce. 2. Mobile payments: China never really had a credit card culture and for most mobile users, cashless transactions took place via smartphone. WeChat Pay and AliPay, the two leading payment apps, together account for 93.3% market share for mobile payments. 3. The logistics industry is well-established, having developed alongside the e-commerce industry. Thanks to the e-commerce boom in China, particularly in the past decade, the logistics and express delivery market is speedy, reliable, and cost-efficient. 4. As the global manufacturing base for much of the world, China has earned the nickname as the “factory to the world.” This manufacturing capacity has provided the e-commerce industry with a wide selection of cost-efficient products that draw in consumers. In my blog post , I wrote that Passion Economy platforms go beyond simply facilitating transactions and provide holistic tools to grow and operate a business. In what ways does Pinduoduo support merchants? We very much believe in the proverb, “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” Pinduoduo has launched various initiatives to empower our merchants and help them not only gain knowledge and skills, but also to leverage technology to improve their business efficiency. We launched to help merchants, including farmers, learn how to sell directly on Pinduoduo and to train them in the basics of e-commerce, finance, business operations, and online marketing. Duo Duo University Pinduoduo also provides consumer insights to merchants to help them better develop and price their products, plan their inventory, and schedule deliveries. This results in more sales and better products for users. Farmers in Yunnan Province learn how to open and operate a store on Pinduoduo at the Duo Duo University. The way we shop in the offline world often blurs the distinctions between social hangout, entertainment, and actual commerce: think of weekends spent at stores with friends/family, asking for others’ opinions on items, and buying together. My former partner Connie Chan recently , “The next Amazon competitor is likely going to look like a social or video app, not a shopping app.” I’m excited about a future where digital platforms reflect our offline behavior, empower creators to build a brand and earn a living, and integrate the trifecta of content, community, and commerce. predicted Originally published as " Facebook and Instagram Shops are here, finally. Plus an interview with Chinese social commerce giant Pinduoduo "

Live Shopping Features On Social Media And Interview With Chinese Social Commerce Tycoon

With the introduction of lockdown measures and brick-and-mortar stores closing their doors, retailers’ reliance on has intensified. The push to online and the need to attract and retain customers has made retail brands invest more in digital advertising and bring livestream shopping to their marketing mixes. ecommerce solutions A hot trend, livestream shopping makes online shopping more engaging and experiential while taking conversions way up. In this article, we’ll examine the phenomenon of livestream shopping, evaluate its impact on the retail sector, and zoom in on out-of-the-box and custom live video shopping tools. What is livestream shopping? The concept of live shopping goes back to the 80s and builds on the idea of video shopping. You are likely to remember QVC’s Lisa Robertson casually chatting with the viewers while demonstrating jewelry or HSN's Bobby Ray Carter showcasing fashion pieces with the viewers tuning in, seeing what’s for sale, and calling in to make a purchase. Livestream shopping — using video streaming tools to demonstrate products, communicate with an audience, and sell, all online — is a natural offshoot of this original TV-oriented model. Combining the best of ecommerce, video streaming, and social media, live commerce lets people shop anytime and from anywhere, encourages real-time communication, and sparks interactivity, appealing to today’s tech-savvy, sit-at-home customersLivestream shopping can take different forms, from live events and auctions to online marketplaces and influencer streams. Irrespective of the format, viewers can tune into a live shopping session, leave comments, ask questions, and communicate with a host or with one another. And once they are ready to purchase, they can click a link embedded in a shoppable video and proceed to checkout. Live shopping provides for personalization, too. Although one-to-many live streams, when products are marketed to mass online audiences, are more popular, brands can pay special treatment to their repeat buyers through one-to-one livestream sessions. With private dialogues between a host and a customer, brands can produce higher conversion rates and average order values and increase the customers’ chance of returning. How does livestream shopping work? Suppose you want to tap into livestream shopping. In that case, you have three options: 1. Leverage social media’s streaming functionality conditions and predicting patient outcomes 2. Market your products on an existing video commerce platform or a marketplace with streaming features 3. Opt for a custom livestream shopping solution 1. Social media The most popular and perhaps most straightforward way to start with livestream shopping is going live on popular social media apps. Luckily, most social media platforms have introduced livestream and ecommerce functionality in response to the video shopping trend. Instagram, for instance, has added built-in checkout capabilities throughout its apps, including Instagram Live, which, by the way, has seen a 70% increase in the number of viewers in 2020. Facebook, too, is developing native livestream shopping tools. In turn, TikTok is partnering with ecommerce giant Walmart for the latter to market their products online. The critical advantage of turning to social media is the possibility to team up with influencers, who play a crucial role in the success of livestream shopping, right where their audiences are. A study from Adweek reports that 49% of respondents actively follow social media influencers and based upon an influencer’s recommendation. So, having influencers as hosts may help in developing trust and loyalty among customers. However, as social media platforms generate income via media buy, they focus on being social. So, ecommerce functionality is still limited to select brands. As a result, shoppers have to be routed to other platforms or websites to finalize purchases, which disrupts the whole retailtainment experience. have made a purchase 2. Out-of-the-box live shopping apps Another way to start capitalizing on the video shopping trend involves joining an existing livestream shopping platform or an ecommerce marketplace with livestreaming features. And these span from video commerce giants like Amazon Live and Taobao, live shopping startups like Bambuser and Spin, and niche live commerce apps like NTWRK. The essential advantage is that most out-of-the-box video shopping apps feature built-in integrations with popular ecommerce platforms and payment gateways as compared to the previous option. So, users don’t have to be routed to other sites to complete a purchase and can enjoy an uninterrupted video shopping experience. The fundamental limitation is that some livestream shopping platforms, especially larger ones and those with established audiences, expect a brand to meet a range of requirements, like having a steady business history, and charge commissions. Amazon Live, for instance, charges up to 10% on each purchase. Another downside is rising competition — with millions of livestream views, it can be tricky for retailers to stand out. 3. Custom live video shopping applications Retailers who seek to make video shopping an essential part of their marketing kit may consider developing a custom retail solution with livestream functionality. Going custom is undoubtedly more effort-intensive than the previous two options. But a custom app can let retailers take maximum advantage of the video shopping trend with tailored functionality, high-quality streaming, advanced analytics, and maybe even some extra features, like AI-powered video content personalization. If you do opt for a we recommend starting with an MVP. However, it is essential to plan for the future and make sure your app will handle the growing number of shoppers. For that, make time to choose a reliable content delivery network (CDN). Looking for the perfect CDN, make sure it has a robust server infrastructure close to your target locations and pay attention to the bandwidth. With the basics in place, you can think about MVP features. The essentials to include in the first app version are: custom livestream shopping app, User registration and authorization Online streaming as such Live chatting Checkout and payment Server-side stream processing With the subsequent iterations, you can add everything from different signup options, personal customer profiles, search options, the possibility to save streams as on-demand videos, advanced analytics, streaming content personalization, and more What’s the livestream shopping market size? The current livestream shopping trend has its roots in China. China’s ecommerce giants started holding live shopping events hosted by local celebrities back in the 2010s. The US has begun to catch up with the trend, too. The US livestreaming market is expected to by the end of 2021 and hit $25 billion by 2023, according to Coresight Research. The market value is still incomparable to that in China, where it comprised $150 billion in 2020 and is expected to reach $300 billion in 2021. The companies that look prominent on the US livestream shopping market today include: reach $11 billion Launched in 2018, the platform has a 2-million follower base, which is constantly growing. According to Bloomberg, since its premiere, TalkShopLive’s sales have increased sevenfold TalkShopLive. . Having started as a directory for American retailers to reach Chinese travelers, the platform has turned into a profitable livestream shopping endeavor that has recently expanded into and is gaining popularity on the American market ShopShops . The mobile app uses live shows to sell limited edition products. The company has seen its sales double in 2020, with some shows reaching $1 million in sales in approximately 10 minutes NTWRK The ecommerce giant has rolled out its video streaming service with lifestyle, fitness, and cooking streams Amazon. The company has introduced Shoploop — a video shopping platform that features 90-second shoppable stories Google. Its Live Shopping feature allows creators and brands to sell products during Instagram Live broadcasts. The functionality is available to business accounts Instagram. An explosion of digital media and video content consumption, an increasing impact celebrities and influencers have on shopping decisions, and the push to online boosted by the COVID-19 pandemic allow projecting that more US retail brands will move on the live shopping trend in the near future. Companies profiting from livestream shopping today Nordstrom Nordstrom, an American department store chain, launched its own in 2020. Following the launch, the brand hosted over 50 virtual events, translating the store experience into the digital world, and plans on carrying out their livestream shopping endeavors through 2021. During each event, customers can shop the fashion products mentioned in the video and participate in a live chat. The company’s efforts are paying off. In 2020, 54% of the brand’s sales came from digital channels, while virtual styling accounted for 30% of all styling appointments. shoppable livestream channel CAIA Cosmetics, Lyko CAIA Cosmetics and Lyko, Swedish cosmetic and hair care brands, have partnered with Bambuser, a video commerce startup, to power their marketing with live shopping. CAIA Cosmetics, for instance, holds make-up tutorials with the brand’s founder Bianca Ingrosso and claims to be very satisfied with the customers’ response. The , with 17% of the viewers participating in the live chat and 60% — engaging through likes. The first live stream ended up with a 5% conversion rate, which is higher than the brand’s website conversions. Lyko, in turn, chose to kick off their live broadcasts by offering tips and gifts during the holiday season. The brand had an average viewing time of 16.5 minutes, 17% chatting and 29% liking engagement, and a 22% conversion rate. average stream viewing time comprises 11 minutes Quivr Quivr, a coffee and tea manufacturer, has tried social media to market their products via video streams but eventually landed on Amazon Live as their video commerce platform. Quivr’s co-founder Ash Crawford says that the of about 150% the next 24 hours after a live stream. brand sees a guaranteed increase in sales Livestream shopping trends and predictions The possibilities for further evolution and expansion of livestream shopping are numerous. Introducing AI, for example, can help retailers create highly personalized channels of live, interactive content created or curated specifically for a given customer. and VR, in turn, would be of help in creating immersive video shopping experiences for sit-at-home customers, for example, transporting them to the front row of a fashion show with a host ready to answer questions. Leveraging AR In the shorter perspective, brands will continue to extend their reach to more customers through live streams, analysts say. Considering the drastic change in shopping habits and the push to online spaces that are expected to last, livestream shopping is likely to extend in the post-pandemic world. Livestream shopping offers an opportunity to bring the best of physical shopping to online customers. If you’re ready to seize the opportunity, contact the ITRex team!

TAOBAO MARKETPLACE

taobao.com

10K+ employees

Since 2003

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TAOBAO MARKETPLACE

taobao.com

10K+ employees

Since 2003

COMPANY RANKING

TAOBAO MARKETPLACE

EVERGREEN INDEX #10673

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