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SooBest's Recipe: Innovation for B2C E-commerce
Aug 04, 2012 (09:08 AM EDT)
GUANGZHOU, China, Aug. 4, 2012 /PRNewswire-Asia/ -- As the Internet economy era rises, B2C e-commerce too is constantly evolving. However, the traditional B2C model is no longer able to catch up with the new development in the field. With quite a lot of deficiencies, B2C e-commerce has an urgent need for innovation. How to solve this problem, as well as how to innovate, is what SooBest.com is trying to figure out.
Build a strategic alliance to cope with the logistics bottleneck
Most B2C companies on the Internet are independently run businesses, without effective collaboration with each other, and the result is that these B2C companies only get the access to small regional markets, which does not accord with the characteristics of global economic integration in such an Internet economy era.
In order to adapt to the basic law of the Internet economy and make full use of the potentialities of the B2C model, SooBest must form a strategic alliance, which can lead to not only an increase in the number of customers, but also a resolution of the B2C logistics bottleneck. For instance, treaties on distributions of benefits are signed between SooBest.com's allied companies. And the data will be shared, which means no matter which site the customer places his order, the goods will be sent from the allied local agency. These local allied companies will also be responsible for the service needed when customers want to return the items for dissatisfaction with the quality or change in their interest. The maintenance and the after-sales service are also undertaken by them. Therefore, to a great extent, the bottleneck of online retailing business has been tackled. Yet moreover, instead of the original access to merely a small customer base of their own, now those allied companies have the whole market owned by the union. The initial limited technical support now has expanded to the domain of the entire strategic alliance and the service one company provides now can be shared by all the allies. What happens next? Certainly there will be more new companies to join in. In addition, due to the external positive effect, the profits earned by the enterprises surely will grow in a geometric ratio.
Create EC 2.0 via technological innovation of Web 2.0
Lots of ideas, technologies, and applications have been widely used within the domain of Web 2.0 and remain the hot focus for researches concerning the continued development of the new Internet. The rise and development of Web 2.0 certainly influence and change e-commerce trends and business models and bring e-commerce onto a new stage of development, namely the E-commerce 2.0 (EC 2.0) era. Developed from the concept of Web 2.0, EC 2.0 means changing the idea of "web-centered" - which EC 1.0 features - to "user-centered."
As the application of Web 2.0 keeps developing, SooBest.com will show its EC 2.0 philosophy, focusing on individuals, customer service, interactions with the user, and the win-win situation. Meanwhile the EC 2.0 idea will gradually get to its early stage of becoming mature and favorable for application.
Reduce inventory, and change from B2C to B4C (B for C)
User-centered philosophy, integrity, high value, and full use of Web 2.0, all together constitute the main content of the EC 2.0 concept, of which one key is the shift from B2C to B4C. Putting itself in customers' position, SooBest introduces the new business model of "procuring by order" -- the B4C mode. Different from the traditional B2C business, where "to" emphasizes customer-oriented method, the "for" in "B4C" means going customer-centered, with "procurement at reserve prices" and "zero inventory" to be its core.
The business model with "zero inventory" and "procuring by order" means not buying anything before something is bought by the customer. Thus, without any inventory pressure, all of the services and promotions don't have to go for traditional methods, which are based on the inventory. And now the key to consider is just what customers need and whether the prices are the most updated in accordance with those in the real market. In this way the site will gain strong market competitiveness.
SooBest.com has practiced this business model on some of its product lines, like wedding dresses, women's clothing, fashion jewelry, cell phones, providing the buyers with professional, objective consulting and procurement services. Besides, SooBest ensures high quality of its products and negotiates the prices directly with the suppliers.
Therefore, EC 2.0 brings a fundamental user-centered change. And B4C is 100% a new service model featuring "procuring by order" and "zero inventory." Only after the customer places an order will the procurement process get started. In the B4C mode, the sellers change from selling-oriented to service-oriented type and decide what to purchase according to what the customers have bought from them.
SooBest has integrated the previous researches on B2C e-commerce development as well as the problems, and the company has done some exploratory studies concentrating on the innovation of e-commerce B2C model, trying to put forward some creative recipes that work universally and more ideas for B2C innovation.