How to do private domain overseas?

This article will take you to an in-depth understanding of the operation strategies of overseas private domain traffic, explore whether every brand needs to build an independent website, how to attract customers on social platforms, and how to replicate the domestic private domain operation experience abroad. Whether you are a novice preparing to go overseas or a veteran seeking to break through in the overseas market, this article will provide you with valuable insights and practical strategies.

Nowadays, more and more brands are going overseas to explore the second growth curve of their companies.

However, in the process of going overseas, we will find that overseas e-commerce platforms are also showing a trend of diversification. From traditional comprehensive platform e-commerce to emerging social e-commerce, to independent sites and other channels, the choices for brands to go overseas are becoming increasingly abundant.

Faced with the complex overseas market environment, brands may be confused when going overseas: should they choose Amazon, TikTok, or build an independent website?

In particular, independent websites are a form of private domain, which is very important for merchants to establish direct connections with users. However, not all brands are suitable for establishing independent websites. Factors such as the product's cost-effectiveness, average order value, quality, and the consumer habits of the target market are all key factors in determining whether a brand needs an independent website.

Merchants also face a dilemma when conducting private domain operations overseas. Due to the dispersion of overseas social tools and differences in user habits, brands need to use various tools and means more flexibly to effectively attract and retain customers.

So how to operate an overseas private domain? Should we build an independent website that is the most private domain? Can the domestic private domain operation experience be replicated abroad? What is the difference between the service logic of Party A and Party B at home and abroad?

In a previous live broadcast of Jianshi, we invited Luo Xiaoshuai, head of overseas growth of Thunder Simulator, Chen Lei, director of brand operations of Weizhuo, and CiCi, senior operations director of Shoplazza, to discuss this issue. They all have rich practical experience and research on the issue of going overseas, and hope to bring you some inspiration. You are also welcome to join Jianshi members at the end of the article to view the full transcript of the live broadcast.

1. Do brands need to have independent websites when going global?

When doing cross-border business, do all brands need to set up independent websites? Which brands can set up independent websites? Which ones can choose platforms such as Amazon and TikTok?

Chen Lei: If the product is cost-effective, independent sites and TikTok are good choices.

Independent sites can be used as platforms for harvesting traffic, but it costs money to attract traffic to independent sites because they are not like third-party platforms such as Amazon, which already have a huge user base.

If the product has a low average order value and high quality, the independent site only needs to be responsible for introducing traffic, conversion and payment, as well as some basic after-sales services, to quickly complete sales.

However, the infrastructure of the independent station needs to be improved. European and American users may cancel their orders if they have a bad experience in payment, logistics and after-sales service. This is different from China, because the payment and logistics infrastructure in China is already very complete. Overseas online payment is not as mature as in China, and users' consumption habits are not as mature as in China, so the payment system and logistics system of the independent station must be improved, otherwise it will affect the transaction.

Although Amazon is smaller in scale, many independent website customers are now trying to connect with TikTok and Amazon, just like the integration of domestic mini-programs and Douyin.

CiCi: Currently, there are several main channels in the overseas e-commerce environment:

One is to enter the traditional comprehensive platform e-commerce, such as Amazon, Alibaba, Walmart, I Wish, etc. The second is to enter the emerging social e-commerce, such as YouTube Shop, Facebook Shop, TikTok Shop. The third is to use independent sites, as well as offline distribution and enter collection stores.

There are many opportunities in the above channels, but which market and channel to choose mainly depends on the characteristics of your products and the capabilities of your team.

Usually, the products for independent sites need to have certain repurchase properties and cannot be particularly durable. If you are doing business in the European and American markets, the team needs to have a strong insight into local consumer needs and use the advantages of the domestic supply chain to create products that meet these needs.

In addition, running an independent website requires strong customer acquisition capabilities, whether it is traditional advertising capabilities or the ability to use content marketing such as TikTok. In overseas markets, these capabilities also need to be adjusted according to cultural differences.

Finally, the in-site operation of independent sites is also very important, including website operation, user remarketing service experience, etc. For example, in the fiercely competitive European and American markets, the team needs to have diversified capabilities, including local market insights, advertising and in-site operation capabilities, in order to create new sub-categories in a saturated market. Independent sites can directly leave customers' email addresses or mobile phone numbers, and can be used for remarketing to better convey brand concepts.

Now many independent website customers also operate TikTok at the same time. Various channels will not exist independently. Large Amazon sellers usually also operate independent websites, but the main sales may still be on Amazon.

If the brand is more mature, the share of the independent website may increase. In addition, there is also a combination of Amazon, independent website and TikTok Shop. There are also many ways to directly link to the independent website by using the registration operation logic of social media. So the combination methods are quite diverse.

Luo Xiaoshuai: Yes, when we were doing it, we mainly focused on the shelf e-commerce platforms that everyone knows, such as Shopee and AliExpress, but later we found that these are more suitable for old players who have already accumulated a certain amount of experience. Amazon has also tried it, but it is more suitable for companies with product power, brand power or design power, and is not very suitable for small and medium-sized sellers.

2. How do overseas e-commerce platforms build private domains?

Jianshi: Whether on TikTok or on an independent website, how do you attract more customers to place orders through specific methods? How do you conduct private domain operations?

CiCi: Overseas private channels are too fragmented.

To some extent, independent sites have become a form of private domain for customers. They usually reach customers through email subscriptions and membership levels. Another way is the community forum platform, such as through social groups like WhatsApp and Line, or one-on-one chats. There is also a community similar to an advanced version of Douban or Zhihu, such as Reddit, which is also a common way to create a group.

For companies with strong brand power and a certain user base, they can build their own websites for e-commerce transactions and also create user forums where users can download manuals, participate in discussions, post messages, and even have roles similar to group owners.

Luo Xiaoshuai: Our approach is relatively simple, which is to bring the domestic private domain experience and gameplay abroad.

We direct traffic from TikTok to our own APP, and then jump directly from the APP to the private domain.

Several tools are used in the private domain. For example, Line is used in Southeast Asia. Another tool is Discord, which is used for community operations. Traffic is directed from the own APP to Discord, and can be grouped by country and interest. Then a series of transaction actions will be carried out, and the transaction actions are all directed to the independent website, or back to the own APP.

Discord operation interface Second, we will also direct traffic from our own APP or Shopee stores to Line. The functions of the business account in Line are similar to those of WeChat public accounts. They also have mini-programs and merchant terminals, and we have also opened the merchant terminal Shop. Our operation method is equivalent to community operation and one-to-one operation, but the one-to-one operation here will increase the manual voice method, and users need to be recalled to our independent station or our own APP to continue to purchase or participate.

Business accounts on Line (similar to the public account model) Foreign users use social tools in a very scattered manner: Instagram is used for daily communication and messaging; Line is used more often at work; Facebook is basically used to read news, and although there are hundreds of thousands of people in the group, there is no traffic at all; Discord is also a place to collect information. Unlike in China, only one or two social tools can meet all needs.

Jianshi: Are all the people you serve foreigners? How many people are there in your team?

Luo Xiaoshuai: Locals. Our overseas business team has more than 100 people, including private domain team, operation team, supply chain, brand and R&D team. But most of us are local employees, except for the leaders who are domestic. Our private domain team has less than 10 people, and serves more than 200,000 users.

3. What pitfalls should you avoid when doing business overseas?

Jianshi: Do you have any suggestions for brands going global? Are there any pitfalls that can be avoided in advance?

Luo Xiaoshuai: I think the most important pitfall is localized culture.

For example, when we were working in the Indonesian market, we found that their religious beliefs were very important, and we could not promote content that might offend religion on the detail page. The second issue was tax law. We had to make sure that your business did not violate local laws.

The third is to deal with local relationships. For example, when opening a company in Thailand, Indonesia or Singapore, you need to handle the relationship with the local government, police and industrial and commercial departments. Finally, there is the issue of funds. You need to consider how the funds will flow locally, how to return to China, or whether to continue to invest locally. These all need to be planned in advance.

CiCi: The issue of intellectual property infringement is very important. It can be caused by pictures or video content, and there are many cases of sellers complaining to each other. This problem may lead to the account being blocked, so this is a point that needs special attention.

Chen Lei: In the process of handling overseas business, we found that the service logic between Party A and Party B overseas is different from that in China.

In China, the second party usually plays a leading role. The first party only provides the budget, and the second party is responsible for strategy execution and result delivery. The first party usually does not intervene too much and only looks at the final results. This is due to the deep understanding and confidence of domestic brands in the local market.

However, once overseas markets are involved, the relationship between Party A and Party B changes. Overseas, Party B is often in a supporting position, while Party A leads the entire process. Party B's role is more to provide professional guidance and execution support.

Therefore, the overseas market has not yet reached the domestic cooperation model where Party A fully entrusts Party B. So sometimes Party A will try on its own, but when it finds that the effect is not good, it will come back to seek professional services from Party B.

If there are any pitfalls to avoid, in fact, in the overseas market, whether it is Party A or Party B, we are all growing through exploration. Party B provides guidance and support to Party A with its professional skills and industry experience. Party A is also actively participating in the co-creation process. Therefore, I think this is not a pitfall, but a process of learning and growing together.