TikTok also wants to copy homework? Learn from AliExpress and launch a "full hosting" model

The latest news is that following AliExpress and Temu, TikTok Shop has also officially launched the "fully managed store" model. Since then, China's "Four Little Dragons Going Global" have fully embraced this new model.

TikTok Shop enters the market, and the "Four Little Dragons Going Global" fully embrace "full trusteeship"

Recently, TikTok Shop also announced the launch of the "full trusteeship" model, saying that merchants only need to focus on products and supply, and all product traffic and operational issues can be handed over to the platform. At first glance, the promotional content is almost identical to the "full trusteeship " launched by AliExpress last year . Many industry insiders believe that the " full trusteeship model " has gradually become the industry service standard .

Under the "full trusteeship" model, TikTok Shop has become an official operation, and it will connect with the Chinese supply chain for procurement. At present, the official has not yet given a clear conclusion on whether the project adopts a direct purchase or consignment sales model. However, what is certain is that the platform can better control product quality and logistics, and reduce the uncertainty of product distribution.

For merchants, operating a TikTok Shop previously required skills in content creation, live streaming, store operation, distribution, etc., but most traditional foreign trade factories lack such capabilities. Today's "full trusteeship" model just solves this pain point.

After TikTok Shop entered the market, the "Four Little Dragons Going Global" have fully embraced "full hosting". Earlier, AliExpress, SHEIN, and Temu have achieved rapid performance growth by relying on the full hosting model.

Data shows that AliExpress's order volume in March this year increased by 50% year-on-year, and the overall user scale increased by 45% year-on-year, setting a historical high. This is closely related to AliExpress's use of the "full trusteeship" model, and its performance has also been reflected on the merchant side.

A small factory originally sold a hot-selling link for $800 a day. After joining AliExpress's full-hosted service, its sales volume increased rapidly in a short period of time, and its sales nearly doubled.

Some merchants with product advantages are growing rapidly. Soon after the ZEUSLAP brand joined AliExpress's full-hosting service, the managed products were quickly sold out. The brand began to adopt a two-line strategy of main store + full-hosting, with the assistance of logistics. It took only 4 months for ZEUSLAP portable monitors to achieve sales of over 10,000 units in the Korean market, ranking first in the monitor industry.

Temu has been online for two months and has firmly taken the top spot in the US app download rankings. As of March this year, more than 50 million registered users frequently shop, with monthly transaction volume reaching US$1 billion.

When foreign trade factories encounter "full trusteeship", the opportunity for Chinese products to be sold around the world has come

Why did the “Four Little Dragons Going Global” successively launch “full hosting”?

In recent years, as inflation in Europe and the United States continues, people's dependence on Chinese manufacturing has deepened. Chinese factories are eager to "go overseas" to grab market share. The "Four Little Dragons" factories have launched a "fierce attack", and a large number of factories have thrown themselves into the arms of "full trusteeship". When foreign trade factories meet "full trusteeship", the two sides can be said to hit it off.

Xiao Liu, a merchant who joined Temu at the beginning of this year, also paid attention to TikTok Shop's "full hosting". He thought that his operational ability was not good, but he had goods, and the full hosting model was very friendly. In particular, multiple platforms have successively launched "full hosting", and merchants have more choices. At present, some of Temu's conditions are relatively harsh for merchants, and he has already started to prepare to join AliExpress and TikTok Shop's "full hosting".

Next, more and more factory-type sellers will choose the "multi-platform hosting" method to go overseas, operating on multiple platforms such as AliExpress, SHEIN, Temu, etc. at the same time, reducing the operating risks of a single platform.

For merchants, "multi-platform hosting" also means more opportunities, because the platform definitely understands operations better than themselves.

It is understood that behind the full-hosting model of the "Four Little Dragons Going Global" there is a team that is familiar with the best-selling products in Europe and the United States. They will basically screen, check and make suggestions on the products of merchants. The platform's operating strategy, combined with the supply advantages of Chinese factories, many managed products will soon become best-selling products, and many factory merchants are expected to take advantage of the favorable conditions to achieve global sales of their products.

However, in addition to cooperating with the platform, the most important thing for merchants is to control the cost and quality of the supplied products.

As factory-type merchants like Xiao Liu choose "multi-platform hosting", the "four little dragons going overseas" are bound to have internal competition in the future. The platform with strong operating capabilities and merchant-friendly will be able to retain more merchants. To a certain extent, this will also change the situation where merchants like Temu have no say.

As the competition between the four "overseas dragons" and their foreign trade factories gather, the curtain has been raised on the grand show of grabbing the overseas market. Under the competitive landscape, the operation and policies of each platform will also be gradually optimized. In the future, the era of more Chinese-made products being sold globally through online channels has arrived.

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