The trend of "full hosting model" has been set off! Major e-commerce giants have joined the market!

The sudden emergence of Temu seems to have invisibly triggered a cross-border e-commerce market revolution called the "full hosting model".

TikTok plans to launch a self-operated e-commerce model

It is learned that recently, according to the latest report from Yibang Power and foreign media news, TikTok will make the following adjustments to its e-commerce business:

TikTok's cross-border e-commerce business will launch a "full hosting" model similar to self-operation;
TikTok Shop's store function will be fully launched in the United States this year.

According to the project team responsible for TikTok's self-operated cross-border e-commerce business model, the TikTok team will directly connect with the Chinese supply chain for procurement, which can ensure that sellers' sales links are shorter and processes are more efficient. Sellers only need to send the goods to TikTok's official collection warehouse in China.

People related to TikTok believe that by operating in this model, TikTok can better control product quality, logistics and user experience.

According to the information currently available, although TikTok has not yet finalized the implementation of the above adjustment plan , the news has attracted the attention of many industry insiders as soon as it came out.

Industry insiders have observed that the self-operated "full-hosting" model launched by TikTok is similar to the business model adopted by Temu, which was launched in September last year. In both cases, sellers are only responsible for supply, and other issues such as traffic, operations and transportation are left to the platform to solve.

As for why TikTok chose to launch this model, some industry insiders speculated that TikTok Shop's local investment in the United States was not ideal , while others believed that it was Temu's rapid growth after adopting this model that attracted TikTok . So far, TikTok has not officially released any notice on this model, and the above arguments are just speculation.

But in any case, this full-hosting model has indeed set off a trend in the cross-border e-commerce industry.

In addition to TikTok, which is gearing up for preparation, AliExpress and Lazada also recently launched this business model and called it a "full-hosting" service.

AliExpress and Lazada launch full hosting services

It is learned that in December 2022, AliExpress announced the launch of full hosting services.

According to AliExpress data, in March 2023, the overall user scale of AliExpress increased by 45% year-on-year, and the order volume increased by 50% year-on-year, setting a record high. It can be seen that after several months of trial operation, AliExpress's full hosting service has achieved considerable results.

After that, perhaps seeing the explosive growth potential of fully managed services, Lazada, which is a descendant of 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 fully hosted model.

According to relevant news, Lazada will integrate platform resources to build a fully managed service exclusive shopping channel - Choice. Under this model, sellers will open fully managed stores, retaining store ownership and goods rights while also enjoying the operation, logistics, after-sales and other services provided by the platform.

In addition, Lazada also plans to launch a fully managed model in the Philippines at the end of May.

It is understood that this model is a double-edged sword for small and medium-sized sellers, which helps simple operations while squeezing profit margins. However, for factory-type sellers and sellers with their own brands, it is obviously an excellent choice to improve process efficiency and reduce operational troubles.

Some industry insiders also pointed out that this full-hosting model is actually a "two-way race" between sellers and platforms , which can effectively combine the quality and supply chain capabilities of sellers' products with the platform's strong marketing capabilities to achieve a win-win situation.

Overall, the full-hosting model storm set off by Temu has indeed brought a huge impact on the cross-border e-commerce industry. As more and more e-commerce giants deploy this model, it may develop further in the future. However, how it will evolve and what impact it will have on cross-border sellers will take time to verify.

What do you think about this? Welcome to discuss in the comment area~

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