Wooden door companies should weigh the pros and cons of e-commerce

Last year, the "Double 11" and Taobao Double 11's carnival activities set a record turnover of $19.1 billion. Ma Yun had publicly stated that he firmly believes that "Double 11" is a signal of China's economic transformation and is a battle between the new economy and new business models against traditional business models.

Online shopping is a fashion trend, and many home companies are desperately entering e-commerce in recent years.

With the rapid development of the wooden door industry, online shopping and e-commerce will also become the trend of the times. On the one hand, online shops are the mainstream force for development today. On the other hand, industry experts and even professional industry media are talking about the inevitable trend of so-called e-commercialization. The advantages of traditional sales channels compared to e-commerce. However, is the wooden door industry, like other industries, able to adapt quickly to the era of online shopping?

The cost of online shops is not low First of all, talk about the cost of stores, this article is also one of the most praised aspects, but it is also the most misunderstood place. Online virtual shops are not so-called gold sacred sites without rent, electricity and electricity, and with no geographical differences, as some of the reports say. It can even be said that the costs of these items are equally indispensable.

First of all, having a shop online is not a so-called free or low cost. Take Tmall Mall as an example. If you want to establish a brand flagship store or franchise store, you need to pay a registration fee of 30,000 to 50,000 yuan and 100,000 yuan. Around the margin and the cost of 30,000 to 50,000 per year in technical support, together with the inventory of goods and other miscellaneous expenses, the funds needed to establish a Tmall shop are between 30 and 50 thousand yuan. For a price like this, the cost of opening a store in an ordinary small and medium-sized city is basically the same, which also means that online stores can be said to have no advantage in terms of storefront costs.

Xiao Bian learned that some people would think that the coverage of offline stores is limited, and online shopping malls may be able to use one hundred, but in reality, building a flagship store online does not cover all consumers. Currently, there are quite a few e-commerce platforms in China. Taobao, Tmall, Jingdong Mall, Suning, Amazon, Dangdang and other comprehensive online shopping platforms and some professional platforms all have their own fixed users. The establishment of a so-called flagship store on a certain platform is far from meeting the expectations of most companies.

The number of publicity and promotion expenses for online shops is not small, and there is a more obvious cost comparison for virtual shops compared to physical stores – promotion costs. Today's online shopping platform is no longer the kind of low threshold, low investment operating mode in the past. If you want to stand out among many peers in the wooden door brand, the cost of publicity and promotion can be said to be indispensable. According to an investigation by an authoritative organization, the average promotion cost of online shops currently accounts for 4% or even higher of the total operating costs, and the proportion of investment in physical stores in this area is only 1.5%. Under the premise of the total cost, the promotion and promotion expenses of online shops are not really a small number.

Inconvenient logistics and after-sales services In addition, online stores have greater logistics and after-sales service costs in the sales process. The consumer groups faced by traditional physical stores tend to be more concentrated, and it is obviously more convenient to have both logistics and after-sales services. The e-shops are targeted at consumers all over the country, scattered orders, can not focus on transport, the relative increase in costs, after-sales service is far behind. It can be said that under the same sales volume, the operating costs of online shops far exceed the offline physical stores.

In summary, some experts suggested that the cost of operating virtual shops on online shopping platforms is generally higher than that of physical stores. At least for the time being, this phenomenon will not be improved in the short term. You can comprehensively consider the timing and mode of transferring to e-commerce, weigh the advantages and disadvantages, and make decisions that are beneficial to your own development.

Wooden door industry insiders pointed out that online shopping is a fashion, it also provides a lot of convenience for people's lives, but people need to be cautious in online shopping, pay attention to quality, not blindly seeking low prices.