Mini Program e-commerce enters "junk time"

Driven by the wave of digitalization, mini-program e-commerce was once a shining pearl in the WeChat ecosystem, carrying the infinite expectations of merchants and users. However, with the rise of WeChat stores, mini-program e-commerce seems to have entered the so-called "junk time" and is facing unprecedented challenges. This is not only a technological innovation, but also a profound change in the business model.

"Garbage time" is a word that makes people despair. With the entry of WeChat stores, the mini-program private domain e-commerce has entered the countdown of life. People who run platforms in the private domain are unhappy, but it seems to be a fact that needs to be accepted. The recent chaotic operations of WeChat have begun to become clear: WeChat e-commerce has officially become a platform.

Three actions have clarified the direction of the WeChat ecosystem:

1. WeChat stores connect the public and private domains and become a global trading platform.

2. Private Domain Incentive Plan, which guides merchants to migrate private domain users to WeChat stores;

3. The new version of the "Video Account [Guiding Private Transactions] Rules" prohibits all public-to-private actions, which means that all transactions of new traffic must be conducted in WeChat stores.

E-commerce business is carried out within the WeChat ecosystem. WeChat stores dominate the market, and private domain mini-program e-commerce has entered the "garbage time".

Let’s talk about a few thoughts today:

1. Does mini program e-commerce have to die?

2. Can WeChat stores be successful?

3. What to do with private domain?

1. Mini Programs, Mission Accomplished

During a game, you are trailing 0:10 and there are still 10 minutes left before the end. This period of time is "garbage time" and you have no chance of winning, but you still have to grit your teeth and persevere.

This is a kind of helpless despair.

A few days ago, I had dinner with our member and the head leader of Kuaituan, and he said that Kuaituan will only last until the end of next year at most.

Although he was still making money, it was declining and there was no sign of it recovering.

Historically speaking, mini program e-commerce has accomplished its mission.

For a long time, WeChat did not have the ability to serve as an e-commerce platform, but merchants had a strong demand to sell goods, so mini programs filled the gap.

It carries transactions within WeChat and helps develop trading habits for WeChat users.

Around 2017, WeChat Pay had been popularized among users across the country, and WeChat Wallet urgently needed to find a consumption outlet.

The money in the WeChat wallet does not need to be withdrawn to a bank card, but can be consumed directly through mini-programs in various scenarios such as life services, food, clothing, housing and transportation.

Through mini-programs, WeChat has killed many mid- and low-frequency apps.

In fact, mini programs are how WeChat completes the closed loop of applications for all people and in all scenarios.

From now on, users can delete any app on their phone and only keep WeChat.

However, there are also many problems with mini programs:

1. It is a pure tool and has no customer acquisition attributes.

2. High construction and operation costs. The cost of SaaS tools provided by Youzan and others is still too high for small and medium-sized businesses.

3. There is no platform, and merchants set their own rules.

This means that in the game between merchants and users, there is a lack of referees. The problems of counterfeit goods, delivery time, after-sales service, etc. are far below the standards of public domain platforms.

Taking this opportunity, WeChat coined the term "private domain", which is still used today.

All of the above have led large businesses to use mini programs as a supplement to customer management rather than a primary platform for acquiring customers.

The threshold is too high and small and micro businesses have not removed it, leading to the rise of various private social e-commerce platforms. Kuaituantuan, Qunjielong, Jingxituan and Quntuantuan are all products of this demand.

They have centralized supply chains and provide free tools, greatly reducing the cost for small and micro businesses to sell goods on WeChat.

The emergence of WeChat stores seems to put an end to all this.

2. Can WeChat stores work?

From the user's perspective, although mini programs have trillions of transaction volumes, they are still a substitute for shopping.

The reason why the WeChat ecosystem places particular emphasis on personal IP and trust relationships is because they are too native and there is no trust, which leads to high transaction risks.

For example, if you place an order on Pinduoduo or Douyin, you will have no worries at all, and you can even turn the tables on the merchant and just get a refund.

With the advent of WeChat Stores, there is no reason for mini program e-commerce to exist anymore.

Because there is no need for two trading systems in the same APP.

1. Users’ minds are already confused enough; they should not have to bear the decision-making costs and pressure brought by chaos and disorder.

2. Merchants cannot operate two shopping malls in WeChat. In addition to the operation and maintenance costs, they also cannot allow the same user to place orders in two shopping malls.

Can WeChat stores be successful? Let’s look at three data:

1. Basic traffic: WeChat has 1.359 billion daily active users;

2. Basic e-commerce: Mini Programs have an annual transaction volume of 5 trillion;

3. Traffic leverage: The daily active users of the public domain traffic of the video account are 500 million.

There are users, transactions, and leverage, and private domain migration is incentivized, plus new traffic can only be traded in WeChat stores.

Although WeChat is slow in action, has weak operations, and suffers from various minor problems frequently, given the general trend, is there any reason why it cannot succeed?

But it is impossible for it to be like platforms like Jingtao, Douyin and Kuaishou. It has its own rhythm and logic.

For WeChat,

Maybe, taking it slow is faster.

In fact, WeChat stores are beneficial to the vast majority of "serious business" merchants.

1. Use the store for free, no need to buy it yourself;

2. Small stores have a reputation system, and the cost of converting new traffic is reduced;

3. Regulation leads to healthy competition. Legitimate businesses are not afraid of regulation, but they are afraid of those who use tricks.

However, as a merchant, they all hope that you will only pay without expecting anything in return. It would be even better if you could remove the deposit and the platform deduction.

Even though this is impossible, hahahaha

Of course, being scolded is also a compulsory course for running a platform.

3. Will private domains die?

Mini programs may die, but private domains will not.

WeChat Stores are, after all, just a transaction platform. Its original intention was to connect the public and private domains and form a linkage, which may be more effective for the private domain.

Let me ask in return: why are platforms preventing merchants from diverting traffic to private domains?

1. There are transaction risks in the private domain. Without supervision, fakes, after-sales service, and even fraud cannot be controlled, which harms the user experience.

2. For transactions outside the system, the platform cannot get any profit from the merchants, but loses the traffic to the merchants for free.

But both public and private domains are traded in WeChat stores, so why would the platform prevent you from directing traffic to the private domain?

Logically, the integration of public and private domains of businesses has become smoother.

The ultimate destination of e-commerce is private domain, and this will not change.

The replacement of the old with the new is a natural law, while "garbage time" is a period of despair in which one is powerless and cannot find a chance to win.

However, practitioners of mini program e-commerce are not like this, because the direction of WeChat e-commerce is very clear.

Isn’t this a greater opportunity?

Maybe you just need to let go and turn around.

Entrepreneurs,

Constantly facing the end and the beginning,

It is a fate that must be accepted.

Everything will be fine,

There is no winter that is insurmountable.

There is no spring that will not come.