America's No. 1 financial conglomerate

Chapter 577 Platform Transformation

Are you talking to us like that?

That was everyone's first thought.

Then you see Jeff Coleman's assistant take a laptop out of his briefcase.

When the screen lit up, many people in the conference room subconsciously leaned forward.

In 1998, although laptops were available in China, very few people actually saw them.

Connecting to the projector in the conference room, and as the screen lit up and displayed the image, Coleman spoke again, "Mr. Zhang, this is our flash sale website. As of December, the flash sale platform has gathered more than 15 million kinds of products, and more than 18 million global users visit our website every day to browse, inquire, and purchase..."

Sitting in the middle of the conference table, Ding Haitao squinted at the screen not far away.

His vision was originally normal, but due to the high density of text and images on the screen, coupled with the limited resolution of the projector, he could only see a screen full of English text and images, which made him dizzy and lightheaded.

Fortunately, Chen Hongping whispered in his ear, "Mr. Coleman said that Flash Sale is currently the world's largest online retailer, and its operating model is equivalent to bringing a super-large department store to a computer screen."

"Consumers don't need to leave their homes; they can simply log onto the website via the internet to browse a vast array of products and complete the ordering and payment process online anytime, anywhere. All the products on their platform are sold through this online model, covering every corner of the globe. Wherever there is internet access, consumers can purchase products from the platform."

"The whole world?" Ding Haitao's heart suddenly raced when he heard those three words. He was indeed in the export business, and also a supplier for flash sales, so he knew what flash sales were all about.

Little did he know that this flash sale would allow consumers all over the world to see and buy his products directly.

He had always thought this was a shopping website operating within the United States.

Ding Haitao was still reeling from this huge surprise when Chen Hongping's translator brought even more exciting news: "Mr. Coleman also said that the Flash Sale plan will open up platform access to Chinese suppliers, helping them to open their own stores on the Flash Sale website."

"The flash sale platform will dispatch a professional operations team to provide one-on-one guidance throughout the entire process, offering comprehensive support from store setup, product listing, page optimization to marketing and promotion. In this way, our products can be sold directly to global consumers, no longer needing to rely on the traditional foreign trade order model, and no longer having to cater to the whims of overseas buyers."

"More importantly," Chen Hongping's voice carried an undisguised excitement, "through this direct-to-consumer model, we can pursue higher product premiums. After eliminating the layers of markups from intermediaries, the profit margin on each item sold will be several times, or even dozens of times, that of being an OEM supplier."

Not only Ding Haitao, but many suppliers in the conference room were just as moved after hearing these words.

These manufacturers have long relied mainly on offline exhibitions such as the Canton Fair to obtain orders, and the initiative in their foreign trade business is almost entirely in the hands of foreign buyers.

Buyers not only arbitrarily drive down prices, but also impose various harsh supply conditions. Once the market fluctuates, buyers will unilaterally reduce orders, putting manufacturers in a passive position.

In recent years, in particular, with the increasing number of similar suppliers and increasingly fierce market competition, foreign exchange orders have become even more difficult to obtain.

If Coleman's proposed settlement plan can truly achieve the effects he claims, it will undoubtedly open up a completely new path for them, a cross-border trade channel where they can truly control their own destiny.

The meeting room erupted in discussion again. This time, Vice Minister Zhang didn't cough to stop the conversation; instead, he fell into deep thought. He knew that everything had its pros and cons, and the new model proposed by Flash Sale meant that the pressure and risks were being placed on the suppliers.

Fortunately, this is undoubtedly of great positive significance in promoting Chinese enterprises to go global and enhancing the influence of their own brands.

After a moment, he looked up at one of his subordinates, who immediately understood his intention.

They don't see things as clearly as these businessmen do, nor do they understand the problems involved in this purely commercial activity.

So the subordinate tapped the table twice, and after the meeting room quieted down again, asked directly, "What do you think of Mr. Coleman's proposal? If you have any questions or concerns, please feel free to raise them."

As soon as he finished speaking, a slightly overweight man raised his hand to speak first.

Ding Haitao knew him; he was a ceramic supplier from Jingdezhen, mainly dealing in ceramic cabinet products.

"Mr. Coleman, we are engaged in traditional foreign trade exports. The logistics process is relatively simple. We only need to load the goods onto the ship and transport them to the designated port according to the buyer's requirements. The subsequent distribution and delivery are the responsibility of the buyer."

"But if we open a store through a flash sale platform and directly connect with end consumers, how will we solve the overseas logistics and delivery issues?"

"That's exactly the problem we're looking to solve." This time, it was another employee of Flashbuy, Lester, who answered him. After listening to the translator's explanation, he said, "You don't need to worry about logistics. We've provided you with two solutions."

"The first model is to directly connect to our Flashbuy global logistics system. Flashbuy has established large-scale warehousing centers in major markets such as the United States, Europe, and Japan. Merchants only need to ship their goods in bulk to our designated overseas warehouses, and we will take full responsibility for all subsequent logistics links."

"After a customer places an order on the platform, our warehousing system will automatically generate order information. Our staff will then pack and sort the goods according to standardized procedures and select the optimal delivery channel to ensure that the goods can be delivered to consumers quickly and safely." Lester paused for a moment and continued, "As for the second model, merchants can choose their own logistics partners, but they need to meet the logistics timeliness and service standards of the flash sale platform."

"However, from the perspective of cost and efficiency, we recommend that you choose the first model, because flash sales have formed a mature operating system and have established the most favorable pricing system with logistics companies around the world, which can minimize logistics costs and improve delivery efficiency."

"Of course," Mark added. "Enjoying warehousing and logistics services requires paying a service fee. The specific fee will be calculated based on factors such as the volume and weight of the goods, storage time, and delivery distance."

Paying is normal; why would a flash sale company hire someone to do this for you?

"But how will the Americans know if my porcelain is good or not? What if they're not satisfied after the goods are shipped and want to return them?"

In response to this issue, Lites explained again, "Regarding after-sales issues, if returns occur, we will bear part of the loss according to the agreed proportion."

Flash sales allow for no-questions-asked returns, and there are usually no return fees for regular courier services.

However, this service is only available to members who subscribe to flash sales, and the number of free returns per month is limited.

If you don't offer memberships, you can actually profit from customer returns during flash sales.

Because the delivery fee they paid to the courier company exceeded the agreement between Flashbuy and the courier company, according to the contract, this was considered Flashbuy's business and they were supposed to give Flashbuy a refund.

The reason for requiring these suppliers to bear part of the return costs is to prevent them from using substandard products and, over time, substituting inferior goods for superior ones.

Mark also shared some internal data from Flash Sale: "According to our internal Flash Sale statistics, the return rate for items priced under $30 is only 0.0448%." "This means that out of every million items, only 448 will be returned."

Everyone understood that the main reason for this outcome was that the shipping cost was too high, making a refund not worthwhile.

Coleman then gestured, and someone immediately brought out a thick stack of papers and began distributing them to everyone.

Chen Hongping picked up the paper, two copies in Chinese and English, which were filled with very detailed terms and conditions. From the qualification requirements for entry, warehousing fee standards, logistics time commitments, to commission rates, after-sales responsibility division, and liability for breach of contract, all were clearly stipulated. The terms and conditions were clear and the rights and responsibilities were well defined.

Some people watched it very carefully, while others didn't take it seriously.

These were all done on a perfunctory basis, purely to give face to Coleman and others.

In their view, opening a store on any platform is all about increasing profits.

Everything has two sides; there are gains and risks.

It's better to just be a supplier for flash sales and earn a decent living.

Coleman seemed to have heard their thoughts. "I won't hide it from you all. Our Flash Sale is undergoing a strategic transformation. Not only you, but merchants from all over China, and even the world, can open stores on our Flash Sale."

"As more and more stores open, I think you can imagine the consequences: the sales of Flash Sale's self-operated products will inevitably decrease."

That was the end of the conversation, but everyone's hearts were in their throats. Decreased sales of flash sale self-operated products meant a decrease in their orders.

However, crisis can also be an opportunity. Chen Hongping thought of their own brand and felt that it was a breakthrough point.

If even Americans are buying our products like crazy, wouldn't that be a huge disaster?

So why worry about not being able to open up channels in the country?

Thinking of this, he asked again, "Mr. Coleman, I heard that in the United States, online businesses don't pay taxes? Also, how are payments settled? Will it take a long time?"

Jeff Coleman smiled and said, "The U.S. does offer tax incentives for online retail, but it's not entirely tax-free."

"However, we at Flash Sale will handle all the relevant procedures for all participating merchants, so you don't need to worry about that."

"As for payment, we settle accounts monthly and will never delay payment."

"I believe that, based on our cooperation over this period of time, our reputation is trustworthy."

Everyone nodded; there was no question about that.

While Americans like to negotiate lower prices, most of them actually follow the contract when it comes to making payments.

"Mr. Coleman, I have another concern. My porcelain is all fragile. Who will be responsible if it gets damaged during long-distance transport?" The supplier from Jingdezhen was also very interested in joining Flash Sale. "Our warehouse has professional moisture-proof and shock-proof equipment. The porcelain will be double-packed with foam and cardboard boxes. As long as it arrives at the port, Flash Sale will provide full compensation if any damage occurs."

"As for problems that may arise during sea transport, I think you all know that there are insurance companies that will provide compensation."

"By the way," Jeff Coleman suddenly looked at Vice Minister Zhang, "Flash Sale also wants to cooperate with COSCO Group in China. If we can negotiate a suitable price for ocean freight, Flash Sale can entrust all its transportation in China to them in the future."

"Mr. Zhang, could you perhaps introduce us to someone from COSCO Group?"

"I would be more than happy to." Vice Minister Zhang knew that the other party had no intention of making any recommendation.

Coleman's real goal was to streamline the customs clearance and transportation process for flash sale goods, creating a professional channel for them.

However, he didn't care, because flash sales had basically always been like this.

It's just that the goods may be delivered more frequently and in greater variety in the future.

But he left the business to China and made money from it, which is something he was willing to promote.

"Mr. Coleman, could we try shipping a smaller quantity first? Like 300 pieces, and see how the sales go?"

After all, the goods had to be shipped to the United States first, and it was a model they had never encountered before, so everyone was unsure of what to do.

"Of course," Jeff agreed immediately. "We don't require merchants to send a certain amount of goods, and we encourage small-batch trial sales first. However, you will also have to bear some responsibility."

"For example, if sales are too good at certain times, and your goods cannot be supplied in time, and others seize the market, then it's not our fault."

"Could the commission rate be lowered a bit? I see the contract says it's tiered, with the highest reaching 20%. Isn't that too high?" Chen Hongping asked.

Jeff pondered for a moment, then shook his head. "I don't think so. You should know that this commission includes all the services needed for the goods in the United States, such as warehousing, logistics, after-sales service, and taxes. You only need to ensure that your goods are sufficient and of good quality."

"Furthermore, if you can reach the highest tier, the commission rate can be reduced to as low as 12%."

Everyone bombarded the room with questions, and once all the questions had been asked, the meeting room fell silent once more.

Coleman knew they needed time to consider, and he wasn't in a hurry.

"Everyone, you can go back and think about it slowly."

"Besides contacting you major suppliers who provide goods for Flash Sale, another reason I came here is to establish Flash Sale's headquarters in China."

"Whenever you want to sign a contract, or if you have any questions, you can go to Flashbuy's headquarters in China for consultation."

"Finally, I'd like to offer everyone a sincere reminder," Coleman said earnestly. "The cross-border e-commerce market is full of opportunities, but its development is bound to be fierce. First-mover advantage often determines ultimate success or failure."

Flash Sale aims to become a platform, and Coleman doesn't care which manufacturer captures market share.

The reason Coleman met with these people was because Flashbuy had a full understanding and trust in the product quality, production capacity, and supply stability of these suppliers.

Selecting these high-quality suppliers as the first batch of merchants to join the platform's transformation will not only ensure the quality of the platform's products and improve the consumer shopping experience, but also attract more merchants to join by leveraging their success stories, thus accelerating the platform's expansion in the Chinese market.

At the same time, this is also an important measure for Flashbuy to deepen its cooperation with the Chinese market, empowering Chinese suppliers, promoting more high-quality Chinese products to the world, and achieving a win-win business goal.

Of course, Ernst actually had another purpose.

That means building good relationships so that you won't be cut off by a firewall later.