What Are The Advantages Of Fanno Positioning And Other E-Commerce Platforms

It is said that the independent cross-border app to be made by byte has finally landed.

According to media reports, the app, called Fanno, was launched in November with a low profile. Regarding this, byte mentioned in the subsequent reply that "Fanno is an e-commerce product in the early stage of exploration, and provides a comprehensive category with high cost performance to global users".

"Global users", "high cost performance ratio" and "comprehensive commodities", several key words basically outline the positioning of Fanno - a platform connecting domestic suppliers and foreign consumers. At present, it is mainly open to the European market, including the United Kingdom, France, Germany, Italy and Spain. China and the United States, the most developed e-commerce countries, are not the first choice.

A person familiar with the matter said, "Fanno wants to be a whole category similar to Taobao and pinduoduo in China. The domestic e-commerce platform has been very developed, but overseas, in addition to Amazon, fastsell, wish and Shen all have their own users, and there is no absolute leader in market share. Therefore, Zijie wants to enter into this market with e-commerce products."

In fact, as early as the end of last year, there have been news that byte will launch independent cross-border e-commerce apps. At the end of 2020, Zhang Yiming mentioned in his internal goal that, In 2021, we will focus on three new business directions: cross border e-commerce, to B (enterprise services) and LKP (office hardware package) , byte jumping also started the cross-border e-commerce project named "Magellan XYZ".

Tiktok is naturally an inseparable link. Similar to the identity of tremolo in China, tiktok is also an important entrance to build traffic + e-commerce. Fanno's "independence" is naturally designed to balance the positive conflict between tiktok's advertising realization and e-commerce business.

Now it seems that the outbreak of the entire cross-border market this year has given Fanno a window period for growth. However, the flow dividend brought by content is ultimately the first step of e-commerce. The complex overseas supply chain system still has a long way to go for the byte that is not good at.

　　 New 1 points to buy, more like the first version of pinduoduo

"E-commerce online" downloaded and experienced Fanno. The most prominent central position on the home page is the new discount zone. All goods are priced at 0.01 euro, which is equivalent to the "1 point purchase" in China.

The first focus is on the rolling activity area. The comparison of "e-commerce online" shows that cross-border platforms such as Amazon, express express and wish are all promoting Christmas gift zones, while Fanno is "winter discount". On the one hand, it is to differentiate itself from other platforms in terms of topics, but the more important reason is that Fanno in its infancy is not enough to compare with other platforms in terms of product volume.

Like most e-commerce platforms, the decline of Fanno's home page is still guessing that you like the plate. Generally speaking, it has moved towards the direction of cost performance, such as a 4-pound watch, a 25 pound cold proof jacket, and so on. There are also some products with Chinese e-commerce elements. In the hot commodity sector, there are large discounts ranging from 40% to 60%, and the prices of goods are mostly between 1 euro and 50 euro. From the price point of view, the platform positioning is "low-end consumers".

From the perspective of category, it mainly focuses on clothing, 3C accessories, fashion accessories, beauty, children's and pet products, home, outdoor and fitness products. According to previous media reports, according to industry sources, more than 40000 SKUs have been put on the shelves by Fanno, A considerable part of them come from domestic cross-border big sellers.

"E-commerce online" found that there were no self operated products on Fanno. It was mainly the store opening mode of merchants. When you click on a single product, you can see which merchant comes from, but you can't click the store homepage. From a logical point of view, Fanno is more similar to pinduoduo's model, focusing on low-priced and popular goods rather than merchants.

At present, Fanno attaches great importance to the fashion category in the start-up stage. This may be The fashion category SKU is relatively rich, the user coverage is wide, and the volume is fast, which helps the new app to expand to a larger crowd and circle through the user communication. Another important reason is that fashion accessories have less pressure on logistics. Fanno's current mode is also relatively simple, which generally adopts the mode of small package direct delivery (no inventory) and overseas inventory.

Yibang power has mentioned in the previous report that in addition to finding the source of goods directly from cross-border big sellers, Fanno also has a batch of goods from the clothing supply chain system built by shopline. Shopline is an e-commerce SaaS platform that provides one-stop service for offshore businesses. Its parent company, huanju group, also has its own fast fashion supply chain platform, fashionline. According to an industry source, some of Fanno's initial supply may come from fashionline, and the two are closely linked.

The logistics side promises to provide free delivery to new users. If logistics efficiency needs to be improved, it needs to pay corresponding fees. Amazon, an e-commerce giant, has launched prime membership service. There will be different levels of charges for logistics delivery timeliness.

In Fanno's "30 day buyer protection clause," users can enjoy 14 days of no reason to return or replace goods. After receiving the goods, if the goods are damaged, defective or inconsistent with the description, they can also ask for a refund within 30 days after delivery.

In a Fanno Recruitment Information circulated on the Internet, we can also see that its recruitment direction is focused on the category of beauty clothing, and highlights the ability to operate popular fashion.

　　 How does "independent" app go

The birth of Fanno cannot go around the "Magellan XYZ" project, which was launched at the end of last year. From the perspective of the whole business plan, there is not only one way for overseas e-commerce business with byte skipping: there are enough space and reasons to realize the overseas e-commerce business through content advertising, guided transaction liquidation and direct mall cash out.

Tiktok is already a content platform with a monthly life of nearly 1 billion yuan. Why should byte be an independent cross-border e-commerce app? If we disassemble, tiktok's e-commerce mainly has two modes: the first is tiktok shop, which is similar to the shaking sound shop. The payment takes place in tiktok, and the business tools are embedded in the business background. Tiktok will charge 5% commission to the merchants who use this function, and provides incentive policies such as free mail and free Commission; Secondly, tiktok cooperates with Shopify to synchronize the goods on the shelves of independent stations to the backstage of tiktok stores with one button, but the final transaction is completed on the Shopify platform.

But a real problem is that tiktok shop is actually only available in Indonesia, and it is not easy to expand it to a larger scale. While Shopify's model is still equivalent to breaking through the external chain, tiktok plays the role of collecting advertising fees and Trading Commission, which is not in line with Kang Zeyu, the current head of byte's cross-border e-commerce business.

When he was the person in charge of tremolo e-commerce, Kang Zeyu hoped to create an independent byte hopping e-commerce ecosystem: businesses and brands have their own twitter stores, and the transactions are all completed on tremor, and no longer jump to Jingdong and Taobao. In October 2020, Shuo Yin will no longer allow the product links of the third-party platform to enter the live broadcasting room of buffin. This decision was made by Kang Zeyu.

It is just that the content distribution mechanism of shaking tone centralization will lead to live broadcasting only from public domain traffic to facilitate transactions. Even the category head also needs to operate to purchase traffic, and the platform has the control right of traffic. The transaction flow of Taobao and express e-commerce comes from paying attention to the private domain traffic of the page. The business owners have the right to control the flow. If the businesses do long-term and stable business, they will naturally consider the input-output ratio in terms of resource tilt.

If the same idea is transferred to cross-border business, an independent platform will be built to undertake byte cross-border e-commerce business in the direction. This not only balances the conflict between advertising realization and e-commerce revenue, but also helps to find a better business channel for undertaking traffic, high conversion rate and long-term repurchase. After all, the mind of the short video platform is still entertainment, and the way consumers browse is fragmented. Compared with the pure e-commerce platform, it will have more advantages in terms of transaction volume.

At present, it is an important window period for Fanno. Since May this year, domestic cross-border e-commerce companies have ushered in the most severe wave of brand closures in the history. From the exposure of a few enterprises to the continuous expansion and upgrading of the situation, some people in the industry said that the estimated loss of the industry exceeded 100 billion yuan. Big sellers begin to realize that "eggs can't be put in the same basket", switch to independent stations, and look for new platforms. This is a good time for Fanno to undertake businesses.

At the same time, wish, the closest platform to Fanno, is also an e-commerce platform from China, which is also a price performance product. However, wish's French market has recently been closed. And Fanno is now opening up in the European market, which, to a certain extent, is also an opportunity to fill the market.

In general, Fanno seems to have stepped on the right time and place, but more problems remain to be solved. First of all, there is no solution to the closed-loop traffic + business. In the field of e-commerce, in order to break the low traffic cost barrier constructed by the first mover platform, there are several samples that can be used for reference:

1. With the help of wechat traffic, the social e-commerce industry has become more and more popular;

2. Fast hand of shaking sound rising by short video and new type of air outlet with goods;

3. Small red book of brand content operation (planting grass and pulling grass).

For Fanno, a new e-commerce platform, it seems to be a natural way to import the huge traffic of tiktok. But "independent" app positioning has not seen the best mode of combining the two. Secondly, the complexity of cross-border e-commerce at the end of the supply chain is far higher than that in China, and each link of payment, logistics, customs declaration and tariff rate will affect the user's shopping experience.

At present, bytes have gained a certain foundation mainly through investment, but with the development of the platform, the requirements for this aspect are bound to be improved. How the subsequent bytes can make up for this short board is a problem.