Subscription-based E-commerce: New Model?

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Alibaba and Jingdong still dominate in the e-commerce map of China and their status is unshakable. But at the same time, many non-integrated e-commerce operators also can orient their proper positions, attracting their own exclusive customer groups.

Both vertical channels, like Vipshop and Yesmywine, or self-support online stores such as Yihaodian and Netease KAOLA, as well as Mogujie and Little Red Book, each of them can run its own patch of land, fact that shows the existence of a  flourishing scene. People may be pushed to think that, seen the increasingly saturated China online market, will appear a new e-commerce model?

As to product with high re-purchase rate and stable frequency,  subscription-based e-commerce can be a reasonable choice. This is a commitment type of shopping: the subscriber not only buys a product, but also agrees to automatically re-buy it on regular basis. Therefore companies should offer the customer sufficient reasons to earn this kind of commitment from them, rather than an order for one time.

Domestically, Hippo&Crate is the pioneer of this model: every month the customers will receive toothbrush, toothpaste and other oral care products provide by the company. Moreover, monthly order is not the “patent” of male market, there is still large exploring space in both female market and infant market.

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