How to cancel the pre-sale system?

During this year's 618 shopping festival, all e-commerce platforms cancelled the pre-sale system. Why was something that had existed for more than a decade cancelled? In this article, the author analyzes the reasons.

Taobao started the pre-sale model as early as 2012. It has been 12 years now and the pre-sale system has come to an end.

What did this model do to anyone? Why was it cancelled?

Before answering this question, let’s first look at why the pre-sale system has been popular for 12 years.

01 Why was it so popular before the pre-sale system?

As early as around 2015, I had not been in the e-commerce field for very long and happened to be working in an e-commerce company at that time.

The first activity planned within the company was deposit inflation. If you paid 10 yuan in advance, it could be used to offset 30 yuan when paying the balance.

Through this method, potential purchasing users can be locked in in advance, merchants can prepare goods in advance, and at the same time have certain expectations for future sales.

If there are not enough users who pay deposits, you can try to attract more users to ensure that the number of users who pay deposits can be increased to ensure the GMV achievement rate.

Have you noticed that the benefits of the pre-sale system are basically concentrated in the hands of merchants?

Merchants can lock in orders in advance to avoid inventory backlogs or out-of-stocks, and prepare various response plans in advance, so that manpower will not be idle or too busy.

02 Why should the pre-sale system be cancelled?

Since the pre-sale system is so good, why should it be cancelled?

That’s because the pre-sale system is good for merchants, but not for users.

1. Users need to calculate the final selling price manually.

Users need to understand the detailed activity rules and do more calculations to know the final selling price.

2. Users have to wait for a long time.

From paying the pre-sale price to paying the balance to signing for delivery, the entire process will take at least one month, or even longer. Users cannot wait. If any e-commerce platform cancels the pre-sale system and makes prices public and transparent, those e-commerce platforms that do pre-sales will definitely suffer a big blow.

3. The merchant took the deposit and ran away

Some businesses collected deposits from users in advance, then closed down and ran away with the deposit.

In this case, it is also a great harm to the users.

4. Fierce competition among merchants

Look at Pinduoduo, there is basically no tricks, it just offers the lowest price and gives discounts on sales.

Look at Pinduoduo’s market value, it is almost approaching JD.com.

Other e-commerce platforms are in a panic. If they don’t improve the user experience, all their users will run to their competitors.

In this era where users are king, user experience needs to be put first.