Some introduction about no source
I believe that everyone has heard the words "no source" and "store group" countless times, but many people are also waiting and watching. Is this model reliable? Or is it a new scam? Today we will help you analyze it from an objective perspective. How is it? Is it worth doing?
First of all, I want to talk about the no-source model. I believe that those who have done e-commerce before know the form of no-source store groups. The so-called no-source store groups collect goods on the platform, and then sell them to their own stores through priced-up merchants, so that we can earn the difference in the middle.
At this time, many friends will wonder, why don’t we adopt the domestic no-source model? Why do we also adopt the foreign no-source model? In fact, the domestic e-commerce platform has reached a saturation period, and the profits of many merchants have reached the lowest point. It is even more difficult for novices to get started.
Everyone must have heard about Amazon's no-source model in many places.
Amazon 's advantages:
1: Amazon is now the online retailer with the largest variety of products in the world. It is well-known abroad and has large traffic.
2: The Amazon platform has a high threshold, fair rules, high-level sellers, and less vicious competition.
3: Foreign online shoppers on the Amazon platform do not care much about prices, so this leads to high product profits. Among Amazon's more than 400 million users worldwide. There are more than 3 million sellers and the purchasing habits of foreigners are contrary to the rules of our domestic e-commerce platforms, so you can imagine the traffic.
So what is the core of the no-source model?
The profit principle of the current no-source model is to take advantage of information asymmetry, collect our domestic products, and then sell them by adding the price difference. "No source" means that you do not need a source, or you can say that the entire network is your source. Nowadays, Internet people with excellent vision have made great achievements by leveraging Amazon's store groups and are expanding their business.
Nowadays, many people don’t even know that Amazon can operate without a source of goods. Many e-commerce people are now guarding their own Taobao stores with meager profits and are still worried about daily violations. This is also an "information gap."
How to manage orders with so many stores?
We have very professional ERP software that can directly help us deal with these problems. You can directly perform product collection, product upload, product filtering, product translation, table export, product management, employee management, exchange rate management, order management, logistics management, etc. So we don’t need to know English at all, just start operating.
How to understand the no-source + store group model?
Store group: The so-called store group is a small group or organization composed of N multiple stores. It is called the store group model. One person can operate seller accounts on multiple e-commerce platforms. If operated by a company, a company can have dozens of people to operate it. It is a model that can be expanded. No source of goods: A seller account has no source of goods, no products, and no manufacturers. It simply and mindlessly publishes goods on a large scale through software. If someone places an order in the store, then we will order the goods from the merchant and ship them to the shopper's destination to complete the sales process.
So, can Amazon's no-source store model work?
Answer: Theoretically, but almost impossible to do!
Why can't we do it? Here are the reasons:
1. The costs in various aspects are too high. For example, you can’t have so many stores. You have to buy stores, which is a considerable expense!
2. The monthly rental fee is 39.9 USD. For many stores, let’s say 50, it is a considerable expense. If the number of stores is too small, it is not called a store group and has no value.
3. You need various tools and software to manage the store. It is too costly to manage it manually, which is simply unrealistic.
4. It requires space and equipment. Amazon has related issues, which will incur costs, and they are not small.
5. If the investment is too large, there are risks. After all, it is just a theory. If you really do it, the risk is still very high!
So what platform is suitable for the store group model?
As a new seller, the first thing you need to do is to quickly put new products on your store, which is called spreading the goods. You need to put a large number of goods on your store so that you have a greater chance of getting orders. This is also the fastest way to make a profit.
Let's think about a question. Amazon's no-source model affects so many points. There is one platform that can be completely avoided. What is it? Shopee and Lazada
Small investment, no monthly fees, and low costs
There is no financial pressure and the shop is also very cheap
Free ERP management can realize various store operations without any association problems
The store delivery of Shopee/Lazada is even simpler, and it can be directly shipped from China
The payment is fast, there are no other fees, and the commission is very low
The most important thing is Shopee/Lazada, etc., new products will have better traffic exposure!
Summary and sharing:
To sum up, I personally think that if you are a new seller or do not have strong strength, if you must do the store group model, I personally recommend Shopee/Lazada, because the cost will be relatively low, the overall investment will be much smaller, and the risk will be relatively much smaller! For platforms like Amazon, I personally think that it is more practical and reliable to operate a small number of stores in a refined manner. I hope everyone can consider it comprehensively and do well on each platform!
