WeChat Mini Program Store V.S. Traditional eCommerce platform, Why should you try a mini program store?

As you likely already know, China is the world’s largest market for E-commerce. Don’t believe it? The total value of China’s E-commerce market reached USD $5.9 Trillion 2020, more than the combination of the United States and Europe. Behind this rise are the popularity of social commerce shopping in China.

WeChat mini program store is a typical social ecommerce platform. And this article will compare the WeChat mini program store with traditional platform from the following aspect.

I. Business Modes

Traditional e-commerce (as Taobao, JD) is essentially a search e-commerce, all the buying and selling logic is based on user search. While on mini program store, users often get product from friend dialogue, group chat, moments of friends, articles of public accounts, and then they buy.

For businesses owner, the biggest drawback of search is that when a user searches, he is constantly comparing prices, qualities and other details. The “search, compare and think” often stop some consumers. And on small programs the deal process is extremely simple and light. Once the consumer saw, they got nowhere to compare and waste less time. And the only problem is how to expose your products to your target consumers.

II. The Transaction Process

Traditional e-commerce platforms go through 6 steps from impulse purchase to transaction completion: APP download and installation, user registration, enter e-shop, product compare, shopping cart, payment.

However, the purchase process of mini program is more concise. From accepting product recommendation to completing the purchase, only four processes are needed: article recommendation/friend recommendation/TWO-DIMENSIONAL code scanning, product purchase, payment.

Compared to traditional platform, WeChat mini program give users the opportunity to share their purchases, suggestions, and feedback, which helps to encourage impulse purchasing and build trust. In a recent study, Nielsen China found that 80% of impulse purchases in China were made due to social recommendations (online content, friends’ suggestions, etc.)

III. Traffic Acquisition

It has been 18 years since the birth of the traditional PC Internet e-commerce platform. There are too many stores, due to the serious homogenization of goods, the cost of traffic acquisition is gradually increasing, and consumers are more inclined to big brand.

Mini program e-commerce is a little different. It is an emerging but blue market. With more than 1.1 billion users, WeChat mini program stores are more potential. Through nearby, friends sharing, moments, public account and offline store promotion are all methods to gain traffic on WeChat. Below are the entry points of a mini program, so you will know the traffic acquisition on WeChat is varied.

70%-80% of China’s population are using WeChat, and this kind of customer advantage is far incomparable to traditional e-commerce.

IV. Cost

The cost of traditional e-commerce and mini program store is an essential consideration of all. And here is the general cost list.

For traditional e-commerce platform:

Deposit: 100 ~ 150 thousand RMB, most is 100 thousand RMB.

Annual software service fee: 30,000 RMB and 60,000 RMB.

Platform commission: 5% to 8% points deducted from each transaction.

Tax: 8% of the total transaction amount.

For mini program store:

Store construction/maintenance cost: The construction cost of a store using a third-party development platform (like LinkieBuy) is about 10,000 RMB, and the annual service fee is between 1,000 and 2,000 RMB.

Payment rate: 0.6% per transaction

Wechat authentication fee: 300 RMB per year

It can be seen that the cost of mini program e-commerce is much lower than that of traditional e-commerce, and it is very popular for the cost consideration of merchants.

From above comparison, we would find for the majority of SMEs and brands, mini program can be regarded as a great opportunity for the transformation of e-commerce.

WeChat-Functions
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