The trend of ‘fully-managed mode’ is surging! Major e-commerce giants are entering the market one after another!

The 'fully-managed mode' trend is increasing with major e-commerce giants joining the market

Temu, which emerged out of nowhere, seems to have stirred up a revolution in the cross-border e-commerce market called “full-service mode”.

It is rumored that TikTok plans to launch a self-operated e-commerce model

BusinessDialogue has learned that TikTok will make the following adjustments to its e-commerce business:

  • TikTok’s cross-border e-commerce business will launch a self-operated “full-service” mode;
  • The TikTok Shop function will be fully released in the United States within this year.

According to the project team responsible for the self-operated model of TikTok’s cross-border e-commerce business, the TikTok team will directly purchase from the Chinese supply chain, which can ensure that the seller’s sales chain is shorter and the process is more efficient. The seller only needs to send the goods to TikTok’s official consolidation warehouse in China. TikTok relevant personnel believe that through this model of operation, TikTok can better control product quality, logistics, and user experience.

Based on the current information, although TikTok has not yet fully finalized the execution of the above adjustment plan, this news has attracted the attention of many industry insiders. Some industry insiders have noticed that the self-operated “full-service” mode launched by TikTok is similar to the business model adopted by Temu, which was launched in September last year, where sellers are only responsible for supply, while traffic, operation, and transportation are fully resolved by the platform. As for the reason why TikTok chose to launch this model, some industry insiders speculate that TikTok Shop’s local investment situation in the United States is not ideal, while others believe that the rapid growth of Temu using this model has made TikTok interested. So far, TikTok has not officially released any relevant notices on this model, and the above points are only speculation. However, this full-service mode has indeed caused a stir in the cross-border e-commerce industry. In addition to TikTok, which is preparing for it, AliExpress and Lazada have also recently launched this business model and called it “full-service” service. AliExpress and Lazada launch full-service model

BusinessDialogue has learned that in December 2022, AliExpress announced the launch of its full-service hosting service. According to AliExpress data, in March 2023, the overall user base of AliExpress increased by 45% year-on-year, and the order volume increased by 50% year-on-year, setting a new historical high. It can be seen that after several months of trial operation, AliExpress’ full-service hosting service has achieved considerable results. After that, perhaps seeing the explosive growth potential of the full-service hosting service, Lazada, which is in the same vein as AliExpress, also launched this new model. On April 25, 2023, Southeast Asian e-commerce platform Lazada announced the launch of the Southeast Asian version of the full-service hosting model. According to relevant news, Lazada will integrate platform resources to build an exclusive shopping channel for full-service hosting services called Choice. Under this model, sellers will open full-service hosting stores and enjoy platform-provided operations, logistics, after-sales, and other services while retaining ownership and property rights of their stores. In addition, Lazada plans to be the first to launch the full-service hosting model in the Philippines at the end of May. BusinessDialogue understands that for small and medium-sized sellers, this model is a double-edged sword that helps simplify operations while squeezing profit margins. But for factory-type and sellers with their own brands, it is obviously an excellent choice to improve process efficiency and reduce operational troubles. Some industry insiders pointed out that this full-service hosting model is actually a “two-way run” between sellers and platforms, which can effectively combine the quality and supply chain capabilities of seller products with the platform’s powerful marketing capabilities to achieve a win-win situation. Overall, the full-service hosting model storm triggered by Temu has indeed brought a huge impact to the cross-border e-commerce industry. With more and more e-commerce giants laying out this model, its development may further evolve in the future, but it remains to be seen what specific form it will take and what impact it will have on cross-border sellers, which requires time to verify. What do you think about this? Welcome to discuss in the comment section~

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