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Sesame CEO talks about how to use e-commerce logistics pain points in Canada

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HiTrends report (by Ray) “Why 58 large domestic online platforms and e-commerce giants such as 58 cities, Tmall, JD.com Joybuy, etc. have not caused waves in the North American market? Is it because of insufficient investment in overseas funds or operational existence?Question? “HiTrends recently interviewed Faith, the CEO of Canada’s first social e-commerce company.Her introduction may be very valuable for companies that want to expand their online business overseas.Make a bold attempt. Canada has long been known for its sparse population, small population, but diverse population.This environment caused two major pain points for the e-commerce platform in North America. The last mile of the day had high distribution costs and small single demand. Even Business Insider Intelligence ’s “Crowdsourcing Report” also specifically mentioned the solution to these two problems.challenge.In non-urban areas, even when shipping along a specific route optimized many times, the distance between two shipping locations can be several kilometers, and each location can only place one or two packages.The cost and inefficiency of the last mile, along with the continued growth of the North American retail e-commerce market share, has not only increased user expectations for fast delivery, but has also put more pressure on logistics companies.In order to solve the logistics problem of local e-commerce, the sesame family team adopted the S2B2C social e-commerce model. Among them, the sesame family team integrated the standardized middle and back-end supply chain services through the “sesame platform”, and the group leader was responsible for the front-end sharing and drainage.The additional services of delivery and customer service draw closer to customer relationships, tap demand, gain trust and enhance customer stickiness, forming an acquaintance-endorsed social sales scenario.Faith revealed that the Sesame Family Group first cut into more than 700,000 Chinese and Asian markets in the Greater Toronto Area, and has achieved good results. In the future, it will continue to work to improve the quality of life in the entire North American community and create resources.Sharing, interconnected and mutually beneficial life circle.The platform’s sales and supply strategy. Faith’s founder Faith was originally engaged in real estate development and asset-light economic business, but realized that the market demand for such services is too low, and the cost of customer acquisition using web pages and self-media advertising is also high., And started looking for more frequent living needs of the target group.After a long period of observation and summary, Faith believes that the online traffic should be obtained by meeting the higher frequency needs of users, and then considering the conversion to other low and medium frequency requirements, the return and sustainability of this model will be moreit is good.The reason why the Zhijiajia team chose the social vertical e-commerce model to serve the Chinese group is that on the one hand, the local small e-commerce has a poor user experience and the quality of the products is not guaranteed; on the other hand, the online social model of most Chinese groups is stillBased on WeChat, WeChat is still a traffic pool worth mining.After evaluation and discussion, Faith believes that after the e-commerce model is rolled out and traffic is introduced, it can better help the two types of businesses, such as life service stores and real estate agents, and decides to start the new e-commerce group model..First of all, in order to solve the problem of small single demand in the rare market, the product categories need to be more comprehensive to ensure that an ideal consumption frequency is reached.The product sales on the Zhijiajia platform adopts two modes: self-operated and direct-operated. Some have their own good products, and some brand-operated stores open boutiques on the platform.At the operational level, products are classified into high frequency, intermediate frequency, and low frequency through their positioning, which can meet the different needs of different people in the same community.A survey by the Sesame Family shows that there are 300,000 Chinese families in the Greater Toronto Area. The median annual income is 100,000 Canadian dollars (about 75,000 US dollars), and the average monthly household consumption expenditure is 5-6 thousand Canadians.Yuan (about $ 4,500).According to this data, the ceiling of Chinese households’ consumption per month can reach 2-30 billion Canadian dollars (about 1.6-2 billion US dollars), and there is a market of 1.2-1.5 billion Canadian dollars (about 9-10 billion US dollars) for low-frequency services.scale.High-frequency products are mostly explosive and daily necessities, including fresh vegetables and fruits directly supplied by the farm, gourmet foods and snacks with high reputation, and high-sounding beauty products, which are close to life and inexpensive.Such products are often the main force, used to open the market, attract traffic, and use WeChat acquaintances to distribute fission to increase sales.Relying on large orders brought by traffic, the platform and supplier manufacturers have greater bargaining power and further strengthen the supply chain.At the same time, most of the IF products correspond to community services, including grass cutting, snow removal, housekeeping and cleaning, while low-frequency services are mainly car, house, insurance and financial services.With the support of traffic, community users can enjoy high-quality IF services at group purchase prices, and the needs of the same community are also highly sticky; for real estate and insurance brokers, acquaintance social relationships can also be used to effectively reduce customer acquisition costs.Secondly, in solving the cost problem of the last mile, the logistics distribution model requires large-scale innovation.Sesame Family has set up a group leader within a range of 2 kilometers in diameter, using the shared group leader’s garage model as a front warehouse, and using group purchase to collect and distribute regularly.Buyers ask the head of the group to pay first and then place an order. After the head of the group receives the goods, they will be distributed, reducing warehousing, management, loss and intermediate links, greatly improving profit margins and the price advantage of the platform.Faith told HiTrends that in order for the head to better serve users and calculate their own benefits, the Sesame House also set up a system backend dedicated to the head to use as the main way of empowerment.This system includes modules for recording and processing orders, calculating commissions, and inventory management. It also includes the platform’s performance evaluation function.Because of the warehousing pressure found in some areas after adopting the regular distribution model, the Sesame Family team decided to set up the role of head of warehouses in areas where Chinese families live more densely.By having one head of the warehouse to serve the 3-5 heads around, you can further improve the distribution efficiency and reduce the difficulty and cost of distribution.Tested by the Sesame Family team, the local logistics conditions in Canada can complete the delivery of more than 30 sub-heads in 5-6 hours, thereby allowing more than 100 heads to pick up and distribute the goods.In addition, the team leader who has achieved outstanding performance and demonstrated a high degree of cooperation will be selected into the partner pool mechanism.This group of heads will not only have the opportunity to get share incentives, but also some heads with strong eloquence and summary skills will also be invited as lecturers to train other heads.Faith believes that Sesame Family Group seems to be selling things, but what it is actually doing is actually more empowering work.In the case of the vertical social e-commerce methodology has been formed, the threshold of the heads of the marketing ability has been reduced, and the time-consuming production of promotional materials has been eliminated, the task of completing platform distribution with quality and quantity has been completed, and user order distribution has been completed.To increase personal influence in the community.Doing a good job of resource integration According to Faith, the main overhead is actually technical staff, because the system development and maintenance costs are unavoidable.In order to better empower the leader group, further optimization of the system is an essential task and the basis for the continued expansion of the e-commerce model.However, because high-frequency products bring ample profit margins, some marketing costs can be directly earned back.In addition to the head of the group, some active users whose cumulative order amount is high enough can also share special coupons and invitations to merchants’ tasting events, so that customer acquisition costs can be more effectively controlled.In addition, as the model has been initially verified, in order to improve user stickiness, Sesame Family will also adopt the point cashback method to convert the user’s consumption quota into points and give active users a certain discount subsidy.The Sesame Family team believes that after the launch of the online cash gift card product, it is easier to stimulate new users to place their first order through the way that the head and the user forward gifts to each other.And this model will also have a good effect in promoting the Canadian native market in the future.Because players in the North American consumer industry issue a large number of physical cash pre-sale cards every year, they can achieve good results, and Canadians have a higher acceptance of cash pre-sale cards.Faith believes that by encouraging and helping more heads to become “red people” in the community, the number of heads of the Sesame Family is expected to continue to grow in the future, and there is still significant room for growth in the scope of services and benefits.And benefit from the shorter user feedback chain, the direction of improving user experience is often more clear..