This year's "618" promotion is different from previous years, and the two mainstream e-commerce platforms of Tmall and JD.com will cancel the pre-sale system. The pre-sale system can reduce the operating risk and storage costs of merchants, but it is also criticized by consumers. Under the impact of live streaming, community group buying, and instant retail, how to improve user experience has become the top priority of e-commerce platforms. After the cancellation of the pre-sale system, low-price strategies, spot sales, shortening the activity cycle and increasing the added value of goods and services will become new means for e-commerce platforms during the promotion period.
Although there is still more than a month before this year's "618" promotion, the major e-commerce platforms are already "ready to move". Different from previous years, this year, the two mainstream e-commerce platforms of "618" Tmall and Jingdong will cancel the pre-sale system.
In the past "618" promotion, Tmall and JD.com usually conducted pre-sales at the end of May, and consumers needed to pay a deposit first and the balance a week later. In the meantime, the platform will issue a large number of coupons to attract consumers to buy again.
"The problem is that the pre-sale system has been 'broken' by some merchants, and some merchants have passed on the risks and costs to consumers." Industry insiders pointed out that although the pre-sale system can reduce the business risk and storage costs of merchants, the delay in delivery and the inability to return and exchange goods make consumers feel that they have "spent money to buy sin".
Consumers are less enthusiastic about pre-sales
"The pre-sale of the big promotion is very troublesome, the rules are complicated, and it is often done 'arithmetic problems'. In 2023, I bought a massager during the pre-sale, and later when it officially went on sale, there were more giveaways. On May 12, Mr. Wang, a consumer living in Jiulongpo District, Chongqing, complained to reporters.
In fact, the pre-sale system itself is not new, it has been one of the main sales models in the real estate industry before it was introduced into the e-commerce sector, aiming to reduce the cost of capital for developers. Over time, the novelty of pre-sales faded over time. The complex shopping process behind the pre-sale has also made some consumers resistant. The "low price", "full reduction" and "buy first enjoy" that consumers originally expected are becoming more and more difficult to fulfill. In addition, some apparel, footwear and hat merchants even set the pre-sale cycle at 90 days, so that the pre-sale system has almost turned into a "customized" sales...... Consumers' enthusiasm for pre-sales is decreasing.
In April this year, Ms. Ling, a consumer in Chongqing, complained to the Chongqing market supervision department that when she bought cosmetics in the live broadcast room of the official flagship store of a brand of cosmetics, the merchant said that after the consumer paid a deposit of 50 yuan, the final price of the cosmetics set would be less than 500 yuan. However, after Ms. Ling paid the deposit, the merchant asked her to pay the final payment of 558 yuan, which was obviously different from the advertised price.
The analysis of the complaints received by the National Consumers Association in 2023 released by the China Consumers Association in April this year shows that there are five problems in the pre-sale model of e-commerce platforms, which need to be regulated urgently, including the dishonesty of the "final payment" price increase, the non-insured price of pre-sold goods, the non-fulfillment of the promised gifts, the non-delivery of the promised time, and the untrue publicity of the "lowest price". The reporter saw on the black cat complaint platform that there were nearly 90,000 complaints about pre-sales, mainly involving false publicity, delayed delivery or even non-delivery.
Low-price strategy and spot sales will become the mainstream
The pre-sale system used to be a powerful tool for e-commerce platforms, which could reduce the operating risks and storage costs of merchants. However, under the impact of live streaming, community group buying, and instant retail, how to improve user experience has become the top priority of e-commerce platforms.
"Without pre-sale, consumers can buy all in stock, which reduces the cost of silence, and the goods can be returned directly if there is a problem." Mo Yuanming, a professor at Chongqing Technology and Business University, said that this year's "618", some e-commerce platforms will launch a series of measures such as full price insurance, free shipping of event goods, and freight insurance, corresponding to large changes in product prices and slow logistics speeds.
So, does the cancellation of the pre-sale system have a big impact on platform merchants? Industry insiders pointed out that the previous pre-sale gameplay wrapped the "coat" of the big promotion, and merchants generally had to reduce their prices to match funds and after-sales resources, which affected corporate profits. Judging from the situation of big promotions in recent years, the experience of the pre-sale mechanism for consumers and merchants is not very good. However, it is undeniable that the cancellation of the pre-sale system will have an impact on some smaller merchants with weaker supply chain capabilities. Originally, they were selling as much as they could, but now they have to stock up in advance, and the overstocked inventory may put pressure on their cash flow.
Mo Yuanming pointed out that in the short term, the cancellation of the pre-sale system may sacrifice some short-term revenue and affect the total transaction volume of the platform. But in the long run, this is to release the goodwill of "moving away from the routine and returning to the essence" to consumers. Rethinking the needs from the perspective of consumers and improving the experience is an adjustment that the platform must make. Now, after the cancellation of the pre-sale system, low-price strategies, spot sales, shortening the activity cycle and increasing the added value of goods and services will become new means for e-commerce platforms during the promotion period.
We should return to the original intention of "user-centric".
In the eyes of industry insiders, the current e-commerce environment is very different, and the needs of consumers have become more specific and pragmatic, and they pay more attention to cost performance and quality-price ratio. Therefore, this year's "618" promotion will be an unprecedented competition between e-commerce platforms, but it is still the "old three" - price, service and quality.
In fact, when the market loses momentum for rapid growth, it is clear that the pre-sale system is no longer applicable. Abandoning the pre-sale system is not a "big retreat" for e-commerce platforms, but a signal to refocus on user value. Zhang Yi, CEO and chief analyst of iiMedia Consulting, said frankly that the cancellation of pre-sales by Tmall, JD.com and other leading platforms is largely due to competition from live broadcast platforms such as Douyin and Kuaishou. The price of live broadcast e-commerce can be changed at any time, but the price is fixed under the pre-sale rules, so live broadcast e-commerce only needs to follow the price to formulate a competitive strategy. So frankly, the pre-sale model is a bit outdated, and it's hard to impress consumers without a particularly low price.
The cancellation of the pre-sale system on the platform will inevitably have an impact on the total turnover. Therefore, the platform is also relatively cautious about canceling the pre-sale system across the board. For example, Taotian Group announced that it was only Tmall that canceled the pre-sale of "618" this year. Industry insiders pointed out that starting with Tmall to cancel the pre-sale system is not only to test the water, but also to allow merchants to adapt to the transition period.
Some industry observers pointed out that the practice of lengthening the promotion node has caused the platform and merchants to invest too many resources. The domestic e-commerce industry has entered an era of stock competition, the traffic dividend is no longer there, the user scale has peaked, and the performance growth rate has gradually become flat. If e-commerce players from all walks of life want to find increments in the stock market, they must pay attention to consumption itself, listen to the voices of consumers, operate with integrity, reduce routines, and return to the original intention of "user-centered".