Why start a side business?#
People around me have offered me opportunities and resources, so I thought about starting an e-commerce business. Even if I lose money, it won't be a big loss since it's a small-scale operation. I didn't expect it to grow so big. I am also grateful to my friends for providing quality products and fast delivery.
How to choose a platform#
I have tried platforms like Douyin (TikTok) and Xiaohongshu (Little Red Book). Although Douyin has a large user base, the platform has maliciously deducted my security deposit for unknown reasons (those who have recently read about the "temu incident" can relate!). I appealed twice but the reasons given were insufficient. It is impossible to contact their customer service, and they directly penalized me and closed my store. After opening two stores, I decided to give up on Douyin. Later, I asked Pinduoduo (PDD) for help in dealing with these "difficult and complicated matters". It is highly likely that my competitors reported me or I didn't pay enough protection fees.
The reason I chose Xiaohongshu was because the platform dissolved its self-operated "Xiaolu Oasis" and transferred it to individuals and third parties offline, which accelerated the development of e-commerce. I felt it was a good opportunity, so I opened a store and have been operating it since then.
Platform advantages:
- As a store owner, if I have any problems or disputes, I can contact customer service through the website or the mobile app for merchants. They respond quickly and solve problems promptly.
- The platform's review process is reasonable. So far, I haven't encountered any strange situations. I feel like I am spending my time and effort on being a good merchant rather than dealing with the platform or reporting competitors.
- The current interface for activities is simple. I don't need to watch any tutorials to know how to configure it. Many other platforms have too many advertisements and promotions, which really makes me feel disgusted.
Platform disadvantages:
- The customer service connection in the iOS version of the merchant app is really bad. Real-time push notifications sometimes show specific content and sometimes don't. It is always in a connecting state, and I don't know what it is connecting to. Every time, I am stuck waiting, and it is far less user-friendly than the PC version. I have provided feedback multiple times, but it hasn't been optimized yet.
- If I activate the "buyer with goods" feature (Pugongying platform, which allows live streaming with product sales permission), I need to set the commission rate (default is 7%). This is a major drawback of the platform. Any influencer can sell my products without notifying me. If my profit margin is already very low, I still have to give them a commission. What's even worse is that if the influencer doesn't cancel the link to my products, even if I later lower the commission rate, during the period when they are selling my products, the original commission rate still applies.
Let me explain further. If you forget to set a default commission rate for general product sales and it is initially set at 7%, and you make a profit of $1 on a sale, you have to give 7% to the influencer, which means you are almost breaking even or even losing money. In this situation, would you lower the commission rate? However, if the influencer doesn't cancel the link to your products, they will continue to sell your products at the original commission rate, even if you explain to the platform that you are already losing money. The platform can't do anything about it because the rules cannot be broken. So, you can only beg the influencer or remove your products from their promotion. It's quite interesting, right? That's why I still dislike the influencer model for product sales.
- I have to constantly post notes on Xiaohongshu. This conclusion is based on the experience of a former Xiaohongshu algorithm engineer. Whether customers can see your store depends on the quality and frequency of the notes you post. The saying "good wine needs no bush" doesn't apply here.
How to define your target audience#
Let's take the example of the products my friends gave me. Initially, I relied on the product images provided by my friends to generate sales. If it were an ordinary person, they would define the product images as clear and detailed. However, most people want to know more about the product and its various uses.
I only understood the general profile of my target audience after selling a lot of products. So, I focus more on product combinations in the images to help customers make better choices. I never thought that custom-made wooden products would be popular among middle-aged or newlywed families, especially when paired with coffee tables, wall decorations, and desktops. Most e-commerce tutorials fail to explain this point clearly.
I am extremely grateful for the boost in sales provided by the product images given by my friends.
I will continue to update and improve. If there are any mistakes, please forgive me, and if you like it, please show your support!