1688 transforms the goods and capabilities of China\’s traditional industries with supply chain gatherings from offline aggregation to online precipitation, becoming a digital supply chain that is readily available to all cross-border e-commerce merchants wholesale and dropship from China. Wang Hairu, vice president of Alibaba Group and general manager of Alibaba\’s China Domestic Trade Department, said on 2018. In his view, the global digital supply chain innovation is imperatively based on the traditional B2B, B2C market.
In August 2018, the 1688 cross-border dedicated team went to Thailand and Vietnam to inspect and found the international dropshipper group. The Chinese people in South East countries order goods from China 1688 and sell on Lazada, eBay, Shopify and Facebook to the people in South East countries as well as consumers in the EU and North America.
Liu Wei, general manager of the 1688 cross-border department, said that when he actually went to Southeast Asia, he discovered that in the countries and regions along with the “Belt and Road”, China\’s supply chain system and e-commerce infrastructure became a business language, connecting global consumers. It helps small and medium-sized sellers in countries along the route, or SME (small and medium-sized enterprises) to obtain profit opportunities via dropshipping or wholesale. For example, they visited a local raincoat manufacturer in Vietnam and found that their raincoat fabrics were purchased from 1688. They even purchased the finished umbrella products directly on 1688, and then retail or wholesale via e-commerce.
“There was a saying that moving China’s manufacturing industry to Southeast Asia might pose a threat to China,” Liu said. “However, the entire supply chain and value chain are not as worried, or you earn, or I earn. Instead, we link Chinese fabrics to local factories in Vietnam by digital means.\”
So, what are the cross-border business groups selected on the 1688 platform? Liu Wei said that it is mainly divided into two categories:
One category is large traditional cross-border sellers operating on platforms such as AliExpress and Lazada. Every day, they explore products according to the behavior of consumers in various countries, and put hundreds of goods on the e-commerce platform for money measurement and sales. It is a very efficient organization form of supply chain and business opportunity mining.
The other type is the 90s (even after 95) entrepreneurs with diversified and more extreme business models. Most of these people are able to serve overseas consumers through Facebook, AliExpress, Lazada, etc., and earn a net profit of $1,000 a day.
Digital supply chain empowerment small business dropship and wholesale from China 1688
Liu Wei said that for these small and medium-sized businesses doing cross-border business or dropshipping, if they are Taobao sellers or Tmall sellers, you can find the source offline. But cross-border goods, they can not find the source of goods offline like Taobao sellers, because China does not have a wholesale or dropshipping market to sell cross-border sources, their supply chain system has three core pain points:
Firstly, the traditional logistics methods based on shipping and land transportation are too slow in delivery. For example, AliExpress sellers need a very efficient small parcel network to enable Chinese goods to appear at the doorstep of overseas consumers for 2-3 days. Therefore, Cainiao International and Ali Platform are building a global intelligent logistics network for this purpose, and empowering the whoelsale and dropshipping merchants in logistics delivery.
Secondly, the wholesaler and dropshipper overseas cannot be effectively coordinated with factories and suppliers in China. Today, Taobao and Tmall have a complete set of flexible supply chains and collaborative networks. When the Taobao seller saw the clothing of the influencer live broadcast, they can re-design and remodel sampling within one week, and the Taobao on-line sales within two weeks. With this domestic foundation, the 1688 cross-border exclusive supply will also provide China\’s supply chain e-commerce adaptation and flexible production for overseas small b merchants, and ensure that products comply with 3c certification.
It is worth noting that there is already a “global factory” project on the 1688 cross-border supply market, and more than 20,000 factories have completed deep certification, such as whether to do OEM or custom for global brands, whether it has been overseas Brand and overseas store services. In addition, the 1688 cross-border exclusive supply will examine the strength of the factory, including whether the manufacturing capabilities match, whether the product quality meets the European standard or the American standard, and whether it is a cross-border seller on the fast-tracking service.
Thirdly, currency circulation is difficult between countries. The seller received the US dollar in the AliExpress platform. In the past, it realized the settlement of foreign exchange through TT, money order and international bank transfer, thereby purchasing and paying logistics costs. But today, cross-border payment and settlement infrastructure needs to be upgraded. Therefore, the 1688 cross-border exclusive offer launched cross-border payment service to help sellers purchase directly on the 1688 platform in US dollars.
In addition to solving these three most important pain points, we also have a variety of technical services, functional tooling services to facilitate cross-border e-commerce businesses, so that businesses can put more energy on the service terminal consumers. \”Liu Wei added.
The data shows that so far, there are 50 million digital goods per day on the 1688 platform, maintaining fast, real-time updates. In addition, the 500,000 sellers on the platform are selling, obviously not for the Chinese consumers. For wholesaler and dropshipper overseas who buy these products, 1688 is not just a source platform, but an integral part of the digital supply chain.
So what does the digital supply chain mean?
Liu Wei said that the sellers who dropship or wholesale on 1688 used the “photo search” function very frequently. They would go to Vietnam and Thailand to directly compare the prices with the price on 1688 and then purchase them. During the field trip, it was found that the supply price on 1688 was basically 1/3~1/2 of the wholesale market in Thailand and Vietnam, which is very attractive for small and medium-sized merchants to dropship or wholesale on 1688.
“The digital supply chain sounds very advanced technology. The practical application is to take a photo with a mobile phone. It is so simple to find a Chinese factory in the Ali terminal market with “photo search” function, and it is so simple to purchase at a Chinese factory. However, this has changed greatly. The way small and medium-sized merchants do business and the way they buy goods.\” Liu Wei explained.
For example, last year, based on the digital supply chain, 1688 cross-border special supply has been tested and successfully tested the first global inventory free model. American consumers buy a necklace at AliExpress. The seller does not need to put the necklace in the warehouse and does not need to send the parcel. Instead, the 1688 cross-border exclusive factory directly ships to the US consumer to realize the online digital operation.
In addition to serving Taobao, Tmall, and Alipay offline stores, 1688 also serves a large group of cross-border e-commerce sellers, wholesale and dropshipping merchants. In 2017, 1688 specifically set up a cross-border channel for globalization and the rapid development of cross-border e-commerce. With the help of the digital supply chain, Alibaba will further deepen cooperation with AliExpress in 1688 in 2018. The 1688 cross-border exclusive “Orange Wind Plan” can better integrate Chinese commodity supply chains and merchant selections.
On the one hand, 1688 and AliExpress share the platform data. Wang Hai said, \”We hope to build cross-border logistics supply chain capabilities with Cainiao and AliExpress, let 1688 goods directly spread to the AliExpress platform, reduce the operation of merchants on AliExpress; also hope that in the near future Let AliExpress merchants really do inventory free business like the merchants doing Taobao business.\”
On the other hand, 1688 launched a cross-border financial product that supports cross-border. Sellers can purchase directly with US dollars on the 1688 platform, no longer need to remit money to China to pick up goods. In addition, the other financial support and rights for the business will be further opened.
In fact, in the past year, the 1688 cross-border market and AliExpress cooperation are more biased towards strategic cooperation and offline docking. Until May of this year, 1688 completed the docking with the AliExpress system. Liu Wei said, \”In the next 3-6 months, the 1688 cross-border exclusive supply will be linked to AliExpress and Lazada to build a local supply chain network to help digitize overseas businesses and even help Chinese sources and Chinese supply chains go to the overseas market.\”
He said that now AliExpress sellers can see 1688 cross-border special offers in the AliExpress background based on their business categories and consumer behavioral insights, recommending 1688 cross-border products for them. In October of this year, sellers can complete the one-click distribution in the AliExpress background; at the end of October 2018, the 1688 cross-border exclusive supply market will provide joint sales support for AliExpress sellers.
\”In fact, the 1688 cross-border exclusive supply market and AliExpress work together, is to change 1688 from an open market to AliExpress\’s own business opportunity market.\” Liu Wei said that now AliExpress sellers in 1688 cross-border The options have changed from the previous open market to personalized matching or private docking.
For example, AliExpress sellers can see the first-hand source of the 1688 factory through live broadcast, and these sources have not even appeared in the open market. He said, \”This will be the most powerful weapon for the AliExpress platform and sellers in 1688. The cooperation does not affect sellers of other platforms to buy in the 1688 open market.\”