WeChat Stores will reshape the future of WeChat e-commerce

The launch of WeChat Stores heralds a major shift in the WeChat e-commerce ecosystem. It will integrate multiple touchpoints within WeChat to build a new e-commerce system, thereby reshaping the future of WeChat e-commerce.

During Tencent’s second quarter earnings conference call, when analysts asked about the “strategic layout of video account e-commerce,” Tencent executives clearly pointed out that “it should not be called the video account e-commerce logic now, but the overall strategic logic of WeChat e-commerce.” This change in expression is worth pondering:

Obviously, with the launch of WeChat Store, Tencent's long-term goal is to build a unique WeChat e-commerce ecosystem with WeChat Store as the core, integrating multiple touchpoints across the entire WeChat domain. This marks the transformation from video account e-commerce to WeChat e-commerce.

WeChat Store, which used to operate in a low-key manner and existed in the form of a video store, is now promoting the future development of WeChat e-commerce with a new image and functions. It is no longer limited to the video account, nor is it just a simple transaction tool. It is also a key node for traffic and transactions in the WeChat ecosystem, and has the ability to "connect everything".

So, what new features and changes has WeChat Store introduced? How has it become an indispensable part of the WeChat e-commerce ecosystem? And how can we fully tap the potential of WeChat Store?

01 Connecting everything: Four major functional upgrades and six major changes

Video store accounts have become a thing of the past, and WeChat stores represent the future. It is foreseeable that in the future, WeChat stores may be seen at any touchpoint within the WeChat ecosystem, and these can also become purchase entrances to WeChat stores.

Jianshi: Let’s first discuss the user experience of WeChat Stores after the upgrade. What aspects have been improved and what areas need further optimization?

Zhang Dongqing: I will talk about changes and constants. First of all, what remains unchanged is the product architecture and underlying technology of WeChat Store, which is actually the previous video store. Therefore, it is not necessary to regard it as a brand new product, especially for those merchants who already have rich experience in live streaming. It is more like a name change.

But this name change actually marks a shift in positioning. This change makes it more reasonable to add new features and eliminate old features. From the perspective of product functions, there are four changes worth noting:

First, it supports the search function. Users can search for the full name of the store or the name of the main category and find the store in the "Small Store" category of "Search".

Although the current search traffic may not reach expectations, it at least provides merchants with a new exposure opportunity. This also makes the name of the WeChat store particularly important, because the optimization of the store name directly affects the possibility of users finding the store through search.

Second, a new "linked account" function has been added. This allows merchants to link WeChat stores with video accounts, public accounts and other accounts. This change reflects the comprehensive integration strategy of WeChat stores, which aims to achieve all-round integration of the WeChat ecosystem by connecting various touchpoints.

Third, the homepage design has been updated. The homepage management function allows merchants to insert public account articles, short videos and products on the homepage, which further strengthens the connection between WeChat stores and other touchpoints within the WeChat ecosystem. This is actually a way to achieve reverse diversion of private domain traffic.

Fourth, the customer service function has been transformed. Although the function is not mature enough at present, some merchants are taking a wait-and-see attitude towards upgrading. The original video store customer service supports corporate WeChat, which to a certain extent realizes the reach of private domains. Merchants can actively contact customers and even guide them to private domains.

However, the independent customer service system now launched by WeChat Stores is difficult to achieve this private domain conversion, which may bring some challenges. However, this does mark the construction of a new customer service management system.

Jianshi: Then, merchants can actually upgrade their WeChat stores first and postpone upgrading their customer service systems.

Zhang Dongqing: There are two key points to note about the upgrade. First, before September 25, the video store needs to be upgraded to a WeChat store. If you do not upgrade, the original video store will not be able to list products. Second, even if you upgrade to a WeChat store, the customer service function is not a necessary upgrade item.

Search and chat on WeChat for "Jianshi Store"

Jianshi: What are the main differences between the current WeChat stores and Video Account stores?

Zhang Dongqing: First of all, there is a difference in positioning. The Video Account Store was originally an exclusive channel for selling goods within the Video Account, while the WeChat Store is the transaction center of the entire WeChat e-commerce system.

Second, the difference in search weight. In the past, video store accounts could not be searched, but now WeChat stores can be discovered by users through the search function.

Third, the number of stores has changed. In the past, one business license could only open five video stores, but now one business license can open up to 30 WeChat stores, which greatly lowers the threshold and encourages merchants to operate multiple stores.

Fourth, the difference in store naming rules. The original video store supports the use of words such as "flagship store", "exclusive store", and "exclusive store" in the name, while WeChat stores do not allow this. This allows even small businesses without brand authorization to open stores.

Fifth, the threshold for opening a store is different. In the past, video store accounts needed to pay a deposit, but now some categories of WeChat stores can be opened with zero deposit, which is a great advantage for merchants who want to try to open a store.

Sixth, the threshold for joining the Preferred Alliance has also been adjusted. Previously, only corporate stores were allowed to join the Preferred Alliance, but now individual businesses can also join the Preferred Alliance, further lowering the threshold.

02 Operational North Star: Improving the Rating of Small Stores

As a trading tool, the “rating” of WeChat Stores is extremely important, which can be compared to the rating of stores on e-commerce platforms. The rating will largely determine the traffic it can attract within the WeChat ecosystem. It will not only help with future paid advertising, but also play a positive role in free content advertising.

Jianshi: Based on the changes and functions just mentioned, how can we make full use of WeChat Stores and maximize their value?

Zhang Dongqing: I think the core indicators of WeChat store operations are sales volume and order volume. These indicators are closely related to the store’s score. The score is the North Star indicator of WeChat store operations and will determine the weight of your traffic in the entire WeChat domain.

Therefore, when operating a WeChat store, we cannot assume that we can sell products at will once the store is built and the products are on the shelves. Instead, we should pay attention to whether the score continues to grow to ensure that it does not decline.

In addition, when operating a WeChat store, we should try to connect various touchpoints within the WeChat domain. For example, check whether the official account homepage is connected to the WeChat store, whether the video account homepage is connected, and whether it can be found in the search, etc.

When all the touch points are connected, the circulation efficiency of the small store in the WeChat domain will be improved, it can bring traffic and even improve sales conversion efficiency. If the WeChat store is only regarded as a tool, its value will be greatly reduced.

In addition, three key points should be emphasized in the WeChat ecosystem: high-quality content, high-quality products, and high-quality services. First, consider how to create high-quality content to attract traffic. Do your official accounts and video accounts have high-quality content? If so, you can use them to promote your store.

Secondly, whether your store provides high-quality products determines the exposure and conversion efficiency of your products in public traffic. Finally, whether you provide high-quality services is related to the rating of your store. These three points are all crucial, but the rating is the core of the core. We need to build a high-quality service system, content system and product system around it.

Jianshi: How to mobilize the capabilities of public and private domains with WeChat stores as the center?

Zhang Dongqing: When operating a WeChat store, we need to pay attention to both the public domain and the private domain. In the public domain, we can attract free traffic by creating high-quality content, whether through video accounts or official accounts, to guide users to visit the store. At the same time, we can also place advertisements in the public domain, such as promoting in live broadcast rooms, and attract traffic by purchasing advertisements.

In addition, WeChat Stores can also be combined with private domain traffic. If you have established a community and have a large number of friends, then WeChat Stores can be used as a platform for private domain transactions.

This will not only improve the smoothness of transactions within the private domain and customer experience, but also when the private domain continues to bring transactions and sales to small stores, the platform may think that your store has been blessed by the private domain.

In this case, the official may provide various incentives, such as private domain incentives. If your store can continue to receive private domain orders, it will in turn motivate your store and help you get more public domain traffic.

Jianshi: In fact, many businesses already have mini program malls. So how should they choose between the two in the future, or how can they coexist?

Zhang Dongqing: The operating logic of WeChat Store is different from that of Mini Program Mall. It is not only a transaction carrier in the private domain, but also has multiple integration capabilities, including various functions upgraded by the official. In addition, when making judgments, we should not only look at the changes in the platform, but also base them on our own business needs.

If you are a merchant with brand influence and your mini program has cultivated users’ trading habits, then the mini program mall should continue to operate and develop further.

If you don’t have a mini program store yet but want to start a business within the WeChat ecosystem, you can consider opening a WeChat store. If you want to run a WeChat store at the same time, you can also do both. As for how it will develop in the future, we can wait and see for a while.

In the long run, the WeChat ecosystem will undoubtedly strive to improve the transaction experience of WeChat stores; in the short term, the Mini Program Mall and WeChat stores will coexist.

03 The transformation from video account e-commerce to WeChat e-commerce

In the past, we have never seen the prefix "WeChat" before products such as official accounts, video accounts, enterprise WeChat, and SouYisou. The emergence of WeChat stores can be said to be a brand new beginning, and the change in positioning also marks the transformation from video account e-commerce to WeChat e-commerce.

Jianshi: If we broaden our perspective to the entire WeChat ecosystem, how should the value of WeChat stores be evaluated?

Zhang Dongqing: Tencent executives’ statement of “upgrading from video account e-commerce to WeChat e-commerce” is worth pondering. In the future, WeChat’s goal is to build an e-commerce system with WeChat stores as the core, integrating various touchpoints within WeChat to form a unique e-commerce ecosystem.

Once the integration is achieved, the small store can attract traffic, and the traffic can naturally be converted into sales. In the past, it was a common problem that only had trading tools but lacked traffic. Now there are new traffic entrances and new opportunities.

Jianshi: As small stores are upgraded, some rules of video accounts have also changed. For example, QR codes are no longer allowed in video account live broadcast rooms, and restrictions on private domain traffic have also increased. How do you view this series of changes in the WeChat ecosystem?

Zhang Dongqing: I think this topic needs to be analyzed in detail. First of all, WeChat Stores, Video Accounts and Live Broadcast Rooms are different concepts and should not be confused. They are operated by different teams and belong to different product lines. The Live Broadcast Room of the Video Account may be just one of the sales channels of WeChat Stores, and WeChat Stores are not limited to sales in Video Accounts or Live Broadcast Rooms.

Secondly, currently it is not encouraged to guide private domains in the video account live broadcast room. Especially if your store is a live broadcast room for selling goods, then you should focus on selling goods in the live broadcast room instead of guiding users to the private domain.

Because once users are directed to the private domain, there may be a risk of private transactions, which may lead to transactions that cannot be supervised. This is not what the platform expects. Therefore, we should encourage users to place orders directly in WeChat stores through the live broadcast room to provide a better transaction experience.

Of course, if WeChat stores become a common trading tool in the private domain in the future and the boundaries between the public and private domains become blurred, there may be more flexibility. But in the current situation, we should cultivate users' habit of placing orders in the live broadcast room and shopping in WeChat stores, rather than relying on traditional transfer transactions.

Jianshi: In fact, this may involve a trade-off between short-term value and long-term value. In order to better develop on the platform, we need to understand the development rules of the platform and have a deeper understanding of the entire ecosystem, which will help us to better conduct business.

Zhang Dongqing: In fact, we should also note that today's discussion is also timely. Our current views may be correct at the moment, but as time goes by, these views may no longer apply or even be wrong. The entire ecosystem is changing very rapidly, and the rules and logic are constantly evolving. It is most important to keep paying attention.

Jianshi: We continue to observe the changes in the user end and video accounts in the WeChat ecosystem, as well as the upgrade of WeChat stores. Official accounts are also becoming more open. We have mentioned the linkage between public and private domains many times before. So, now that WeChat stores are placed in the entire WeChat ecosystem, which are public domains and which are private domains, and how to link the entire ecosystem together?

Zhang Dongqing: In the WeChat ecosystem, sources of public domain traffic include search, watch, official accounts (now increasingly relying on algorithm recommendations), and short videos and live broadcast rooms of video accounts. Mini programs can now also be embedded in WeChat stores. These are all public domain traffic carriers within WeChat.

WeChat for business and WeChat for individuals constitute the two pillars of the private domain. They reach users through single chat, group chat or Moments, and these contact methods constitute the core of WeChat's private domain. WeChat Store is located in the middle. It is both the entrance to public domain traffic and the transaction carrier for private domain transactions. Together with the public and private domain entrances, it constitutes the WeChat global e-commerce operation framework.