In Pinduoduo’s cross-border business, there are two different models, semi-hosting and full-hosting. They target different merchant groups and have obvious differences in stocking mode and logistics mode. Let’s take a look at the obvious differences between semi-hosting and full-hosting of Pinduoduo’s cross-border business.
First of all, there are significant differences in the merchant groups targeted. For those sellers with strong supply chain resources or factory-type sellers, it would be a wise choice to give priority to the full-hosting model. This is because the full-hosting model has lower risks and its process is simple and clear. Both new and old merchants can get started quickly. Under this model, merchants do not need to face many cumbersome operational links and can focus more on the optimization of the product itself and the supply chain. For example, merchants do not need to worry about the formulation and implementation of marketing strategies, nor do they need to invest a lot of manpower and material resources in customer service. These are all managed and managed by the platform.
For those mature merchants with overseas delivery capabilities, the semi-hosting model may be more suitable for them. Because the semi-hosting model is more flexible and convenient in terms of product listing, and its fulfillment time is also higher, it has a significant effect on improving consumer satisfaction. This model is particularly suitable for cross-border merchants with mature cargo trays, who can achieve better development under the semi-hosting model by relying on their own advantages.
Secondly, there are also significant differences between the full-hosting model and the semi-hosting model in terms of stocking mode. In the full-hosting model, Pinduoduo has relatively strict requirements for stocking, and needs to go through multiple complex links such as product selection, sample sending, version review, and image review.
This series of processes is designed to ensure the quality and market adaptability of the goods. Although it is relatively cumbersome, it provides a strong guarantee for the successful launch of the goods. However, in the semi-hosting model, the above complex processes do not need to be worried about by the merchants. The sellers only need to upload the goods and fill in the basic information, and carefully maintain the inventory. This model undoubtedly saves a lot of time and energy for merchants, allowing them to invest more resources in other key business areas.
Furthermore, the two are also very different in terms of logistics models. In the full-hosting model, merchants usually need to send the goods to the warehouse designated by the platform, and the subsequent operations, warehousing, distribution, returns and exchanges, and after-sales services are all managed and executed by the platform.
The main responsibility of the merchant in this process is to report the goods and supply them, and there is no need to worry too much about other aspects. In the semi-hosted model, the situation is different. The seller needs to undertake the whole process of logistics services including warehouse management, delivery fulfillment, inventory maintenance, terminal distribution, reverse logistics, etc. This requires merchants to have strong logistics management and resource integration capabilities to ensure that the goods can be delivered to consumers quickly and accurately.
In summary, there are obvious differences between Pinduoduo’s cross-border semi-hosted and fully-hosted models in many aspects. Merchants need to carefully choose a model that suits them according to their actual situation and development needs in order to achieve better development and growth.