00 Never expected that there are 5425 Taobao villages in the country nowadays. What’s even more unexpected is that in today’s e-commerce business is getting more and more difficult, these Taobao villages are living very well. Why can they make money? Today we will analyze it carefully.
What exactly is Taobao Village?
Let’s talk about what Taobao village is. In fact, there are standards for Taobao villages. If the number of active online stores in a village reaches more than 10% of the local households, and the annual transaction volume of e-commerce reaches more than 10 million yuan, then this village can be called Taobao village.
5425 Taobao villages, what exactly does this number represent?
6 years ago, in 2014, there were only 211 Taobao villages in the country. The reason why the number of Taobao villages has grown explosively is that is supported by policy, and the vigorous development of the sinking market in recent years is inseparable from e-commerce platforms.
Friends who follow e-commerce actually know that e-commerce business has been difficult to do in the past two years. Many Taobao stores have chosen to close the store and exit, and there are also many Taobao stores. Although they are still maintaining, their profits are getting thinner and thinner.
On the premise that the overall environment of e-commerce is not very good, why can Taobao village develop against the trend? Not only does the turnover become higher and higher, but the number is also increasing. This issue is worth studying. What exactly is Taobao Village selling?
Let’s first look at what Taobao village is selling. In fact, the products sold in Taobao village are still very different from e-commerce in cities. Most of the products sold in Taobao villages are local specialties or agricultural and sideline products.
buy fruit on e-commerce platforms, and this matter seems to have been widely accepted by everyone. is not just a fruit, but also many specialties and handicrafts are also popular among consumers online.
And these things are exactly the best opportunities in Taobao Village.
If you say you want to sell mobile phones and electronic products, it is definitely not possible in the village, but if you sell handicrafts and agricultural and sideline products, the city really does not have the advantages of Taobao villages.
In the past two years, more and more e-commerce companies have transformed into factory direct delivery model. The advantage of this is that they save all intermediate links and make it easier to establish advantages in price. If the product circulation link is minimized, the cost will of course be much lower.
Taobao Village’s business model is actually equivalent to a factory direct delivery model of handicrafts and agricultural and sideline products. The biggest difficulty in doing this before was put into use, is logistics.
Only one family in a village does e-commerce, and the logistics cost is very high. However, if dozens or even hundreds of families do it together, the scale of will be effective, and the logistics cost can be reduced to very low . This is an important reason why many Taobao villages can exist and get better and better.
In addition, handicrafts and agricultural and sideline products have an important feature, that is, they are all non-standard products. Although they are all apples and tastes vary, it is difficult to have a standard evaluation system. Your home is apple, and my home is apple. If you change the venue and name, everyone sells their own products, the price competition is not so fierce. Why does Taobao Village have advantages and what other problems exist?
Industrial era originally pursued standardization, but today with overcapacity, more and more people are beginning to pursue personalization, customization, and original ecology, which provides important development opportunities for Taobao villages, which mainly focus on non-standardized products.
What's more, compared with e-commerce in cities, rural e-commerce has a huge advantage in terms of labor costs and site rental costs.
To sum up, Rural e-commerce has product advantages, cost advantages and price advantages. Under the combined effect of these advantages, the development of Taobao village can of course go against the trend.
But in the process of development, there have indeed been many chaos. For example, a Taobao village that does plant flowers and trees is frequently complained about due to low-quality products and poor credit stores, which has indeed had a very bad impact on the local reputation.
In addition, since agricultural and sideline products are shipped directly from Taobao village and delivered directly to consumers without going through any intermediate links, does have many hidden dangers in food safety . Some insiders have previously revealed that because the goods sent directly from Taobao lack quarantine, in order to reduce losses, many pesticide usage is seriously exceeding the standard.
In the process of vigorously developing rural e-commerce and helping more farmers get rid of poverty, how to achieve standardized management and allow consumers to buy products that they can safely be the direction that everyone needs to explore and work together in the future.
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