Paipai.com, part of Jingdong, is launching micro-shop platform for both business and individual sellers targeting C2C mobile shopping market.
Wechat added a new feature this May for its official account platform to enable verified Wechat Official service accounts, who have integrated Wechat payment, to set up mobile store easily. During the same period, JD.com also integrated its online shopping platform on Wechat. Both don’t seem to catch the individual sellers market; that’s where Paipai’s micro-shop comes in play.
Paipai has been internal testing micro-shop with 5,000 merchants for about one month. According to Ebrun News, 40% of Paipai Micro-shop orders come from Wechat, 20% from mobile QQ, and 40% from other channels including Qzone, Weibo, and forums.
Paipai plans to launch mobile app in late October to enable individuals merchants to set up mobile online stores on smartphones directly.
The cost per user acquisition is much lower on mobile. Paipai knows that; and it enjoyed it. According to Paipai, the CPA of its micro-shop is just between 1 and 2 yuan while it costs no less than 10 yuan on other C2C platforms. The cost per order of Paipai micro-shop is between 7 and 8 yuan comparing with over 30 yuan on other C2C platforms.
The combined MAUs of Weixin (Wechat’s Chinese version) and WeChat were 438 million by end June 2014 according to Tencent’s financial results for Q2 2014. It’s very common to see people utilizing Wechat as a sales tool using his or her own personal Wechat account and selling various products. Though there are a few apps available for individual sellers, Paipai micro-shop will most likely be the most competitive product in the market considering the strategic partnership between Jingdong and Tencent.
Also check out the 7 charts on China mobile shopping apps market.