Ou Yifeng: New online merchants' new ideas for gold panning

2020-06-04 09:43 | Readtime: 5min

      Ou Yifeng's business is no longer as simple as opening an online store. He, who is in the electronic accessories business, now owns a small foreign trade company with 30 to 40 people. Another of his identities is the President of Dunhuang Shenzhen Chamber of Commerce. 

   This is because his business started and developed on Dunhuang Internet. Almost 2 years ago, Ou Yifeng, who had worked in Shenzhen for a few years, began to have the idea of starting a business, but was struggling with his small savings and could not find a suitable project. This is why his cousin recommended him to Dunhuang.com and helped him open an account to provide services to overseas small and medium-sized customers.

  After only two years, the annual sales of this account in 2009 have reached nearly ten million yuan. According to Ou Yifeng's own estimates, sales growth in 2010 will still grow at a rate of more than 300%.

"A large number of new online merchants are emerging." Xu Lei, vice president of Dunhuang.com, said that there are currently thousands of millions of sellers on its platform, and thousands of them have annual sales of tens of millions or even tens of millions. . And these "newbies" on the Dunhuang Internet almost all have the same entrepreneurial trajectory: just after they came out of the society, they can invest a lot of money and are backed by China's huge production capacity; after finding an entry point on the Dunhuang Internet, they quickly do Big.

   ●New opportunities for foreign trade Li Baining chose "double line" combat

  In 2003, Li Baining, who was still working in the company, set up his own company. Shenzhen Zhongheng Tiandi Technology Development Co., Ltd. (hereinafter referred to as Shenzhen Zhongheng) focuses on the research and development of software and electronic products.

  Li Boning initially established the company's sales channels "completely on the Internet". Shenzhen Zhongheng has no stores and is also a small online enterprise with a team of more than 40 people. But his starting point is Taobao, and the road to foreign trade is "growing with Dunhuang.com". At present, it has a turnover of several million in Taobao, and the monthly sales of Dunhuang.com have reached millions per month.

   "Choosing dual-line combat skills to reduce inventory and increase the weight of negotiations with upstream manufacturers." Li Boning said. This may represent a future trend. Also in Shenzhen, a group of Taobao sellers are thinking about "how to expand sales channels", and overseas markets are also under their consideration.

   Shenzhen Zhongheng's overseas buyers are mainly some retailers or online merchants in the United States and Western Europe. These buyers place orders 3-4 times a month, and the amount of each order is 300-500 US dollars.

   But Li Baining could not conceal his love for these small orders. Despite the impact of the financial crisis, Shenzhen Zhongheng's annual sales in 2009 doubled compared to 2008. In the peak season at the end of last year, the monthly sales remained at US$200,000 to US$300,000, and the quota remained at around US$150,000 even if it was transferred to the off-season.

  Compared with large orders, Li Boning said: These small orders have better profit margins. Moreover, overseas buyers who make small purchases are "easier": once they determine who to buy, they rarely ask and bargain repeatedly, and "speed" is their biggest concern. According to Li Boning, there are even overseas online requests for Chinese sellers to ship directly to customers. Therefore, a type called "overseas overseas" came into being. Li Baining will first send the goods to the United States at once according to the sales volume. If the buyer has an order, he will ship directly from the local warehouse, which greatly saves the turnaround time of the goods. .

  Tripartite benefit

  Ray mainly sells fishing gear and outdoor products on Dunhuang Internet. His company has only 5 people and has sales of more than $20,000 per month.

  But he thinks his job is meaningful. Without him, "there will be no connection between the more than 100 small shops scattered in Europe, America and Australia and the three Chinese companies that supply us." It is this connection that saves each other from "slain" the financial crisis.

  Ray's suppliers are also found online. But at the beginning, these foreign trade factories were reluctant to make small orders because they were "used to take large orders." This has caused a large number of similar companies to fail in the financial crisis. "They are waiting for the long-delayed orders and refuse to restructure." Ray helped his suppliers to overcome the difficulties, and urged the factory to transition to small and medium orders in a timely manner by constantly telling them that "the demand for small and medium orders is large."

  This transformation of the Chinese factory has saved some Ray overseas customers. For example, an Australian did not start fishing gear at first, he just wanted to choose a stable industry to intervene. Ray introduced him to the fishing tackle industry, and the Australian also began tentative underground orders and online sales, "Now the next big order is almost every one to two weeks."

   What Ray has to do is to "balance" because "the contradiction between the factory's production capacity and the purchasing power of foreign customers": factories are reluctant to make too small orders, and foreign customers are not willing to order too large orders. Ray has to find a balance in this contradiction. Sometimes they have to play the role of a wholesaler to order from the factory, but they also bear the risk of "hoarding".

For example, a customer only wants 200 fishing rods, but such a small order factory is definitely not willing to do it. What should I do? "According to our analysis of the market and customers", Ray will decide to place an order for 5000 items. "This not only enriches our products, but also has more opportunities to attract new customers. At the same time, the factory can also accept this quantity of factories."


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