[E-commerce must-have question 04] How should dessert and cake e-commerce be done? Check out the six major qualities of dessert and cake e-commerce, so that you can avoid spending more money

The 4th question of the e-commerce must-have question, what should dessert and cake e-commerce do? Help you analyze the six major constitutions, so that you can master new knowledge, solve problems, and hit blind spots. Dessert cake has always been a very popular entrepreneurial topic, because of its low entry barriers and relatively simple material acquisition and production. For example, I once bought a handmade cake at Shopee. After chatting with him, I found out that she is a housewife who makes cakes when she has children, so she needs to make an appointment a week in advance. But such a business model is difficult to expand, and why?

Dessert cakes are always a hot topic for startups

As we said earlier, dessert cake is a product that can be made as long as you have a kitchen and an oven. She is not like what we did before in [E-commerce must-test question 01] Health food e-commerce? Inventory of the five current market conditions, To save you from detours , the health food mentioned, you must have a factory and a certain amount of purchase to make it. So, if you go into the shrimp skin and do a search, you'll see a whole bunch of hand-made dessert cakes for sale. But we have to be honest, dessert cake e-commerce is an e-commerce field with "low entry barriers and low survival rate", because dessert cakes will face the following six difficulties in e-commerce operation. It might capsize.

1. Shipping is expensive
2. Very low capacity ceiling
3. High repurchase rate
4. Very short duration
5. Urgent needs are super common
6. Beauty is justice

6 major analysis of dessert cake e-commerce physique 01: expensive shipping

When we are talking about the e-commerce of desserts and cakes today, there will definitely be shipping costs involved. Of course, you can also let consumers pick them up, but self-collection means that it is difficult for you to develop, because dessert cakes in Taiwan have a kind of Products that are meant to be celebrated, so most consumers are either suddenly greedy or just place an order when they are about to celebrate. That is to say, unless your cake is so good that consumers are willing to make a special trip, if you only rely on your own It can be very difficult to maintain operations with consumers near the site.

Let's take a look at the refrigerated shipping price of Black Cat. The starting point is 160 yuan, which is really not expensive. I also want to recommend you other cheap logistics, but you just need to check the Internet which logistics are used for dessert cakes. understood.

And high shipping costs basically mean two things:

1. Free shipping threshold is high
2. must try to reduce the volume

The result of expensive shipping 01: The threshold for free shipping is high

Generally, the threshold of e-commerce in Taiwan is probably "free shipping for over 1,000" and up to "free shipping for 1,500", while MOMO is a bit more ruthless, which is 490 free shipping for fast arrival and 399 free shipping for over-acquisition, and then it is not five or five. Send a free shipping coupon.

Then let's go back and talk about general e-commerce. We will probably take 15% of the order to be the cost of shipping. For an average customer order of 1,000 yuan, 1000X15% = 150 yuan. This amount is probably your packaging material, genuine The cost of reverse logistics, labor, etc. will be required. But if we look back today, if it is Black Cat's low-temperature delivery service, the starting price is 160 yuan, that is to say, if we only calculate the 15% shipping fee based on the unit price of 1,000 yuan, it is not enough to send the low-temperature delivery service in the past.

Therefore, if we want to be an e-commerce company of desserts and cakes, we must raise the threshold for free shipping, so you can search the Internet. Most of the dessert and cake e-commerce companies offer "free shipping over 2,000" and "free shipping over 3,000". activities, or directly add shipping charges.

Then, when we raise the threshold of exemption today, we will encounter a problem. If we take the average cake price as an example, if we want to make an order of 2,000 yuan, we need to order two. However, the shelf life of cake products is short, only four to five days, and after deducting the logistics and delivery time, it will eventually become that consumers have to eat the cake within two or three days when they get it. Unless he is a company group buy or a company birthday or something, it is really difficult to eat two cakes in two or three days with the population of a small Taiwanese family.

The result of expensive shipping 02: must try to reduce the volume

As we mentioned earlier, the cheapest low-temperature home delivery service is 160 yuan, and this shipping fee can only be used for packages under 60cm. If it is a little more, the shipping fee will jump to 225 yuan immediately (increase by 40%). So we have to find a way to save shipping, but you will encounter another problem, the cake body is easily damaged, you must have some packaging material (cardboard) to strengthen it, and then if you want to put it on the cake body Some decorative icing or styling chocolate stuff, then you'll need to go up again, but that might increase shipping costs.

So you will find that many large-scale dessert cake e-commerce brands, their cake bodies are quite simple, of course, it is not because these brands can't make such cakes, but the simpler the cake body = the smaller the volume, the better the cake. The simpler the style = the lower the chance of cargo damage .

6 major analysis of dessert cake e-commerce physique 02: very low capacity ceiling

The capacity ceiling is an embarrassing issue that dessert cake e-commerce companies will encounter, because if dessert cakes ask group moms or Internet celebrities to help push the products, if the effect is good, it will directly come in 500 orders. However, your original production capacity may only be able to make 30-50 desserts or cakes a day. If you want to quickly place orders, you need to ask familiar relatives and friends to help you rush the work. You also have to worry about customer complaints if the quality is unstable.

But to be honest, you have to hurry, because if your order is delayed for too long, you will encounter a lot of customer service bursts, fb fan groups / IG being washed, and orders cancelled due to delays.

That is to say, the final result is " good business, people will fail. Business will be bad, stores will fail." So you will encounter an embarrassing situation when you are operating dessert cakes. Growth rate, if you don’t solve this situation quickly, the first step is the flood of customer complaints we mentioned earlier, and then the customer loses confidence and the order volume decreases slightly.

Because dessert and cake products are highly customized and have a short shelf life, it is difficult for you to stock up and sell them. That is to say, how much you can sell depends on how strong your production capacity is. And like the housewife we mentioned earlier, he has a kitchen + a refrigerator, and at most there is another freezer to help preserve it. He simply cannot take on a large number of orders, but if he wants to increase production capacity, he has to invest in production lines. When you want to invest in a production line, don't forget that in addition to food machinery, you also need to store freezer equipment, venue rentals, etc. If these costs are invested, if your order quantity cannot keep up with your production capacity , and become the production line idling. If you keep up, then you have to consider whether to open more production lines and so on.

This is why it is difficult to do e-commerce of desserts and cakes. Many people do it by themselves, or couples are looking after them.

Table of contents

• Dessert cakes are always a hot topic for startups
• 6 major analysis of dessert cake e-commerce physique 01: expensive shipping
• The result of expensive shipping 01: The threshold for free shipping is high
• The result of expensive shipping 02: must try to reduce the volume
• 6 major analysis of dessert cake e-commerce physique 02: very low capacity ceiling
• 6 major analysis of dessert cake e-commerce physique 03: high repurchase rate
• Affiliate Remarketing Playbook with High Repurchase Rate
• 6 major analysis of dessert cake e-commerce physique 04: very short validity period
• Disadvantage of very short validity period 01: The production line is tight and needs to be produced after receiving the order
• Disadvantage of very short validity period 02: Commodity/raw material inventory cannot be actively expanded
• 6 major analysis of dessert cake e-commerce physique 05: Urgent demand is super common
• 6 major analysis of dessert cake e-commerce physique 06: appearance is justice
• Face value is justice: the advantage of high face value
• Summary: pick the right system provider, so you have no worries

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