Cross-border e-commerce SaaS stands at the forefront

2022-06-14 0 By

Source | volunteers like network (ID: passagegroup) author | Lu Na edit | small chi 2021 cross-border electricity field is the most popular with capital?The answer is SaaS.According to statistics, in the whole year of 2021, cross-border e-commerce SaaS obtained 28 financing cases, with a total financing amount of more than 600 million yuan.Among them, Jica completed 3 rounds of financing within 4 months, with the highest round of financing reaching 180 million yuan.And Mabang is in August got the SaaS industry last year’s highest figure of 300 million financing.To this year, the pursuit of the capital of SaaS is still not cooling signs, respectively, there are shop secret, dousha Bao, Crossing the river, FunPinPin and other cross-border e-commerce SaaS accumulated more than 100 million yuan financing.In early March this year, Shopkeepers got a C round of financing of nearly $100 million, which is the largest round of financing in the field of ERP SaaS of global e-commerce so far.An investment insider told, “After the epidemic, when the shop secretary opened the first round of financing, many front-line fund owners came to visit, I even heard that partners of well-known investment institutions directly brought TS to visit.”The enthusiasm of investment makes the track, which is fundamental to the cross-border industry, become crowded. “The head basically gets money” and “it feels that there are few opportunities for new entrants.”Many investors said so.Under this wave of upsurge, Zhixiang has conducted in-depth communication with a number of front-line investors and founders of SaaS companies to explore why capital is pouring in here at this time, what is the real situation of SaaS industry, and where is the future of cross-border e-commerce SaaS in the current competitive landscape.First, cross-border Saas draught e-commerce, consumer goods competition is white-hot, the structural opportunities brought by going to sea, are the reasons why cross-border e-commerce Saas is favored by capital.According to Tianyan, there are more than 600,000 cross-border e-commerce related enterprises in China at present. If we look at the current size, even if the service unit price is higher than the average level, the current market is two or three billion, but the capital is focused on the potential opportunities of tens of millions of sellers and a trillion dollar market worldwide.An investor who focuses on the cross-border sector told, “WHAT I’m really concerned about is whether cross-border e-commerce will rise, whether sellers will have more information needs, and whether more SaaS startups will emerge.”After starting to pay attention to this track, the investor contacted more than a dozen cross-border e-commerce SaaS companies, but did not see any projects that made him particularly “excited”. “A large number of investors have been looking at this track since the beginning of 2020.Another investor Zhang Yuan (pseudonym) was concerned about cross-border e-commerce SaaS as early as 16 years ago, when the small circle of overseas scale, more focused on infrastructure and platform, ERP SaaS shop secretary with its Internet operation thinking A large number of customers, also got dahe Venture capital A round of financing in that year.In the same year, e-commerce ERP Wanliniu obtained A round of INVESTMENT of 20 million yuan and entered the cross-border market through the acquisition of “Lazy ERP”. Chen Yaohui, chairman of the board, said that cross-border business has been included in the vision of the company from the very beginning, and the goal is to become A company with achievements in the global ToB field.In the following years, the cross-border market was relatively quiet.Until the outbreak of the epidemic, the cross-border track attracted high tide of capital attention.At the beginning of 2020, as the first service provider in the cross-border industry with A complete China-Taiwan system, Eicang Technology obtained A round of financing of nearly ten million DOLLARS from Wuyue Capital and Zhenfund.In the same year, Jushuitan, A domestic SaaS collaborative platform for e-commerce, made A strategic investment in Lingxing, A cross-border ERP SaaS service provider. Soon after, Lingxing obtained round A financing of 70 million yuan from Hillhouse Venture Capital, Shunwei And Blue Lake.The year also saw a surge of startups.PongoShare, a SaaS service platform connecting domestic brands and global high-quality content creators, was established in April, 20. Founder Of PongoShare, Na Xin believes that the cross-border e-commerce industry is in a time window of upgrading and iteration, and content marketing and data in-depth development must be the direction of high attention of industry players.Opportunities for new platforms like TikTok and livestreaming e-commerce should not be missed.FunPinPin, founded in May 2020, intends to create a complete closed-loop service of “independent station + drainage” through its Market Place developer platform, and on this basis, it emphasizes aesthetics and design, and continues to support DTC sellers to go abroad.In the same month, Tuo Tuo Data Department was established based on the cross-border e-commerce market and committed to building an ecosystem linking “scenes + financial institutions + users”. It is the first online inclusive financial product for export e-commerce in China.The startup Yiwang Innovation Technology is a boutique and self-run 1688 international station, focusing on providing two core services of new product development and boutique account period for cross-border e-commerce sellers on Amazon and other platforms.Each of these startups raised tens of millions of dollars within a year.Iresearch consulting in the report concluded that the enthusiasm of investors, SaaS market is finally no longer a supply side solo.Under the run-in of both supply and demand, the functions of SaaS products are more perfect, become more three-dimensional, and the services provided by manufacturers are also more suitable for enterprise needs.It is important to note that in addition to the business of SaaS itself, the role of service providers enables SaaS vendors to act as a bridge between various segments of the cross-border industry and even investors.Under the trend of going out to sea, investors who have not been involved in cross-border investment may choose to look at SaaS first, hoping to use this bridge to help them enter the cross-border circle and reach the overseas market.In the process of traditional cross-border e-commerce operation, businesses will encounter a variety of problems, pain points focus on destocking, marketing, collection and settlement of foreign exchange and other links, so SaaS companies have emerged for these links.Chen yaohui showed a case of the WMS warehouse management SaaS service developed by Wanli Niu.A business with a daily average of 20,000 orders needs 100 employees to complete the daily operations of the warehouse before buying any system, but after the fine management of SaaS, the same single number of 40 people can complete.The improvement of efficiency comes from the fact that the actions of each process can be reflected in the software and optimized by the corresponding algorithm. Under cloud computing, the software can locate the best position of each product and design the optimal path when distributing goods.”The fine management of our warehouse is not valuable when the order volume is small, and the optimization of the warehouse can maximize its value only when the order volume reaches a certain level.”Because of this, the main service objects of Wanliniu are generally merchants with daily orders of more than 200 orders, who have more requirements on the standardization of the system and the integrity of functions (such as warehousing, inventory and finance).At the same time, Wanliniu adopts the omni-channel mode and connects with more than 100 platforms at home and abroad, which also makes its core highlight to distribute complete and accurate inventory and financial statements.At the same time, other SaaS companies targeted at different customer groups have been launched.For example, xiaomi also adopts the strategy of omni-channel and multi-platform, but its service users are mostly small and medium-sized sellers, which is directly related to its business model.Users can use the store secretaries’ system for free, and then purchase value-added services such as warehousing and logistics according to their own needs, greatly reducing the entry barrier for merchants.Zhang Yuan believes that the customer acquisition strategy of shop secretaries has innovated the business model of the industry, and the more than 1.2 million customers accumulated in the future have more possibilities for mass sales, and its first-mover advantage is easier to form barriers in the current competitive landscape.An investor who participated in Juca’s round A financing said, “We choose Juca because the customer quality is the best. The small seller of goods store is A single point tool, which will definitely be replaced by the brand seller in the future.Ringstar is now doing well with some small brand sellers, while Jinja is doing boutique sales, and this customer group has the strongest willingness to pay, and the customer unit price of the whole product is the highest.”What we are betting on is that in the future, Chinese overseas sellers will definitely move from shop type to brand type. As can be seen from Amazon’s store closure logic last year, standardized and refined operation is still a general direction in the future.”Based on the same logic, many SaaS manufacturers and investors at the same time to the independent station SaaS.Shopify’s success has given cross-border e-commerce practitioners plenty to think about.As the leader of independent SaaS, its core strength is not in its ability to build a website, but in its strong ecological ability — it has built 100+ templates, connected 6000+ applications, and can open multiple e-commerce platforms at the same time.Zhixiang network came into contact with SaaS Foreign trade Cattle, an independent station focusing on BtoB going to sea.Xiao Bixiang, CEO of Foreign Trade Ox, told, “Our positioning is to create a ToB version of Shopify, which is mainly a standalone site to help domestic factories and trading companies, including some traditional brands, engage in overseas investment, or channel distribution.We may be more focused on the integration of company or factory and product modules.”Traditional ToB is mostly in the form of offline foreign trade, while the penetration rate of online channels is the highest in Ali International station.More than one million Chinese merchants with overseas qualifications and more than 300,000 customers are using Ali International, contributing about 20 billion yuan in marketing.Foreign trade cow currently serves more than 5000 customers, paying users in about 4000, focusing on independent station SaaS and marketing services, customer unit price 30,000 yuan a year.Its customers are mainly from Ali international website customers or traditional offline customers — they have done international trade before, and the product team has a certain foundation, but they urgently need new channels, or more cost-effective traffic to help them develop overseas agents.Xiao Bixiang summed up that customers need to get rid of the centralized platform through personalized operation.Speaking of the understanding of independent station SaaS, he said, “in fact, it is a set of website tools plus service output, operation concept, help customers succeed.One is to make a fool of overseas B-terminal diversified independent station, the other is to use my content marketing tools to do some natural flow and effect.”When communicating with investors of a head dollar fund, he said that the direction he is looking at now is mainly independent station SaaS, private domain marketing SaaS, supply chain logistics SaaS.”For example, destocking, whether through business flow to do tail goods processing, logistics to do some pre-processing, or through the use of selection software, can solve this part of the problem,” the investor continued, “ERP SaaS phase has passed, enterprises have new needs.”Sexy business?Ideally, software knows no borders, and SaaS makes money from global users.”The pure SaaS model is already a sexy business,” sighs one investor.In fact, SaaS software does not have technical barriers, the market is prone to homogenous products, too complex products and functions do not have so many user needs, so it is difficult to rely on a single SaaS tool to occupy too much market share.Some SaaS practitioners say that the capability of a SaaS largely depends on the depth of the service, that is, the atomicity of the service.Another path is to build an ecological closed loop and look for the second growth curve.”Walk on two legs”, create more diversified products on the supply side for large-scale users on the demand side, meet users’ needs from multiple dimensions, and activate the re-purchase and dependence of old users.For cross-border e-commerce, ERP is a platform SaaS, which has the greatest opportunity to form an ecosystem.In fact, in the last two years, the cross-border SaaS performance, investment and financing is also more concentrated in the ERP SaaS segmentation track, represented by Wanliniu, Lingxing, Jiga, and other e-commerce ERP manufacturers, at the speed of two rounds in half a year frequently obtain high financing.The reason is that the one-stop management system provided by ERP for merchants is just needed, which can help cross-border sellers deal with daily store management more efficiently. Its functions include order management, logistics management, FBA management, overseas warehouse management, commodity management, report management, etc.That means the big manufacturers have a lot of customers, “beating the low ones with the most pressing needs,” zhang explains.This is also the reason why Wanliniu vigorously promotes WMS on the basis of ERP.On the other hand, the market capacity is limited after all, and not all startups and investments pouring in can have quick returns.For the manufacturers that do not have so many customers at present and have excellent single point capability, there are only two end-results. One is to find enough funds to build a large volume and occupy a place in the market until the further opening of the global market.Or it is the SaaS ecosystem of the big vendors into it.Established for more than two years, Jixingniu is a SaaS service provider for order fulfillment management of cross-border e-commerce. In 2021, it completed 1.7 million order fulfillment and served 15,000 sellers.Yi Jie, CEO of The company, believes that the real core pain point for sellers is not ERP but order fulfillment, because this part of the cost, especially for sellers in Southeast Asia, accounts for 30% to 40% of the order sales.Ji Xing Niu’s business performance is outstanding, yi Jie also communicated with the store secretary about business cooperation, but Yi Jie told, “Their ERP has been very perfect, if you can connect with our WMS system, it would be very good to help their platform to do some corresponding services.But because we don’t have the scale or reach of their users.So we’re still running at a higher speed. It’s possible in the future.”There is a long-term concern about SaaS track, where the fund also has many SaaS project investment experience investors believe that “SaaS is not technology-driven, demand-driven, so how to understand customer needs, how to iteration products, is the barrier”.Chen Yaohui also revealed to Zhixiang that Wanliniu has been improving and iterating its system every year, and each product costs tens of millions of yuan. “We are still a company willing to invest in products and technologies.”At the same time, because of the integration of domestic and foreign trade, The system of Wanliniu can achieve a warehouse distribution worldwide, and at the same time, it connects with hundreds of channels and platforms at home and abroad. In fact, it has natural advantages to support domestic sellers to do cross-border business and get greater revenue opportunities.But Chen yiu Fai found that the current reality is not as fast as expected growth, through the internal system analysis found that the service business to do domestic trade and cross-border convergence is only about 2%.After all, domestic and cross-border gameplay, such as talent accumulation, including the transformation of business model is still different.”Many teams do cross-border business at a loss at the beginning, because they have to pay tuition fees.”However, Chen yiu Fai also said that he is very optimistic about the general trend of domestic sellers doing cross-border business. “I boldly predict that in the future, for every 100 brand companies doing domestic market, more than 30 will carry out cross-border business at the same time, which will bring 10 times the growth space for cross-border related industries.”Finally, SaaS opportunities and markets are not limited to service fees paid by established users.Shopify’s innovative revenue structure is a case in point.According to its earnings report, its payments and merchant services revenues account for more than 60%, which means it can leverage SaaS’s acquisition and retention model to make money from financial services.This may also inspire the domestic platform SaaS.