New move! ByteDance launches cross-border e-commerce APP

As the domestic e-commerce market is saturated, market development is on the agenda. Many big companies have begun to deploy cross-border e-commerce, not just Alibaba, Tencent and other big companies. Earlier, official website information showed that JD.com began to recruit a large number of operators in operations, procurement, and products, suspected to be preparing for the layout of Amazon, and now there is news that ByteDance will also launch an independent export e-commerce APP.

ByteDance may launch an independent export e-commerce APP

Recently, there was official news that ByteDance is testing an independent export e-commerce platform and plans to launch the platform in October this year. It is understood that the independent application to be launched by ByteDance is based on the e-commerce business of the Douyin APP and is a new exploration outward, benchmarking domestic e-commerce platforms such as Taobao. At present, ByteDance has contacted many large sellers in East China and invited them to participate in the platform testing.

There have always been rumors that ByteDance is about to launch an independent e-commerce platform, and we could have gotten a glimpse of it earlier.

In December 2020, Zhang Yiming proposed three key new business directions in ByteDance’s internal goals, one of which was cross-border e-commerce; there was also news at the beginning of the year that ByteDance would start a cross-border e-commerce project code-named "Magellan XYZ" . Now it seems that the cross-border e-commerce sector has come to light.

In the recruitment brochure released by ByteDance, the cross-border e-commerce platform to be launched by ByteDance is positioned as "the preferred platform for users to discover and obtain good products at low prices", and the APP has multiple scenarios such as live broadcast, video, search and recommendation, and the strategy is still mainly based on different scenarios and low prices.

In fact, ByteDance has already begun to take steps towards cross-border e-commerce, and it can be said that it has already paved the way for its own independent e-commerce platform. From its initial investment in Shenzhen Starlink and Patson, to its investment in logistics service provider Zongteng Network , the powerful combination of big sales and logistics, coupled with the support of its own TikTok's huge traffic pool, has also made more industry insiders pay more attention to how big the new APP will snowball.

When Amazon blocked a large number of Chinese sellers' stores, ByteDance's choice to enter the independent station market also made many people worried. Some sellers said that although they had the traffic pool, their conversion rate was worrying and it was difficult for their stores to make orders because a lot of traffic came from people who had no clear shopping needs. Relying solely on traffic cannot survive in the jungle of e-commerce.

In addition, ByteDance needs to deal with the complex foreign e-commerce market environment, the differences between Chinese and overseas consumers, payment methods, and logistics systems , and it needs constant adjustment. It takes time to quickly build a market system and truly gain consumer recognition. It is said that independent websites are built on money, and a strong capital chain is also essential.

In today's e-commerce market, the overseas cross-border market is not a blue ocean. There are many top platforms, medium-sized platforms, and independent sites that sell goods. The ability of social media to bring goods is developing rapidly, and these platforms are like fish in water in their respective tracks. When the accounts of big sellers are frequently blocked, ByteDance chose to enter the cross-border e-commerce market, just like a catfish entering the sea. We don't know how big the storm will be in the future.

With half-year revenue of 700 million, are independent websites really that popular?

It is not just ByteDance. Earlier, Nanjiren, a big seller in China, also announced that it will soon launch an independent platform to conquer the cross-border circle. Domestic big sellers have chosen to build independent stations, which makes people wonder whether independent stations are really so popular. In fact, whether an independent station is popular or not, its performance can best explain everything.

Jihong shares, half-year revenue of 2.491 billion yuan, net profit of 181 million yuan;

Lechuang's independent website had a half-year revenue of 225 million yuan, a year-on-year increase of 368%;

Zibuyu's sales GMV compound annual growth rate reached 680.0%;

Ecovacs, with half-year revenue of 5.359 billion yuan and net profit of 850 million yuan;

Zebaobao independent station had a half-year revenue of 41 million yuan.

Judging from the performance, the revenue from the independent sites of big sellers is really lucrative; judging from the data, the number of independent sites in China is constantly increasing, and has now reached about 200,000; most people in the industry are very optimistic about the development of independent sites, and some even say that in the next three years, cross-border e-commerce sellers will inevitably have an independent site.

The semi-annual report data of Hanwang Technology, one of the major independent station operators, showed that its revenue in the first half of 2021 was 724 million yuan, an increase of 28.97% compared with 561 million yuan in the same period of 2020; its net profit attributable to the parent company was 30 million yuan.

Hanvon Technology is a company founded in 1998 that focuses on artificial intelligence interaction. On the TO C side, the company mainly sells digital painting products. It has painting brands such as "Hanvon", "XP-PEN", "XENCELABS", "UGEE", "Deco Fun" and "GOGO Bird". The products are mainly sold to hundreds of countries and regions overseas through mainstream cross-border e-commerce platforms such as Amazon and eBay and nearly 20 self-operated independent stations .

It is worth noting that Hanwang Technology's online sales account for too large a proportion. In response to the situation where a large number of Chinese sellers' accounts were blocked on the Amazon platform earlier, Hanwang Technology is well aware of the risks of not putting all its eggs in one basket. It stated that it will expand sales channels and explore new markets in the future, especially strengthen the operation of its own platforms, and gradually increase the sales share of its own platforms to disperse and reduce risks.

In fact, the big guys are not only looking at the independent station platform, but also the Amazon platform. Earlier, Linshi Wood Industry, a leading domestic Internet furniture brand, said it would vigorously develop cross-border home furnishing e-commerce , focusing on the Amazon e-commerce platform, while building a supply chain and service system, and strengthening advertising resources in overseas markets.

It has to be said that Linshi Wood Industry is very forward-looking. As early as 2017, it began to lay out its export business, just in time to catch up with the dividends of the furniture market explosion in 2020. It is reported that Linshi Wood Industry has currently entered multiple Amazon sites in the United States, Germany, etc., and has achieved remarkable results.

It is well known how popular the furniture sector was in 2020. Insufficient overseas production capacity but strong demand has led to a substantial increase in China's furniture exports. The annual furniture export value of 403.9 billion set a historical high. Many companies operating cross-border e-commerce categories have also ushered in a surge in performance, which has attracted many sellers.

In general, whether it is an independent website or a third-party platform seller, whether it is operating furniture or other categories, there are entry barriers, and the threshold for independent websites is relatively higher. However, sellers also need to pay attention to putting users first, complying with platform rules, deepening the track gameplay, and constantly innovating and integrating, and they will definitely be able to create a world in their own track and meet their youth early.

ByteDance

Cross-border e-commerce

APP