Chapter: 5205
The same product has a return rate as high as 50% for others, but she has always taken care of her family, been grateful, sung some sad songs, and thanked everyone again and again, making her fan tolerance much higher than that of other streamers.
Many people buy things in her live streaming room but feel dissatisfied, but when they think about how hard this woman's life is, with her children and husband bedridden and an elderly mother-in-law who may not survive for a few years to care for, they feel like the money is just being used for good.
That's why she can indeed compress the return rate to within 5%!
This has let her ability to bring in goods be highly recognized by those brand partners.
Although Red Hua's fan count isn't as high as that of top streamers, her fan conversion rate is high, and order completion rate is also high, which makes brand partners increase her commission proportion even more.
The cost of living streaming with influencer marketing is already quite high. For example, yesterday she brought in five towels from a factory in the south, with a production cost of around 15 yuan. Due to the massive order quantity, the shipping cost is around 2-3 yuan, and the storage and packaging costs add up to around 20 yuan. However, she sells them for 99 yuan per set, with an extremely high profit margin.
However, brand partners also have their own weaknesses. They are most afraid of a high return rate.
The platform gave consumers a seven-day unconditional return right to protect their interests. Each order costs five yuan in manual and logistics costs. If it's returned by the customer in the end, this means making no profit and actually losing five yuan, plus the cost of re-packaging and re-shipping is not negligible.
Therefore, once the return rate is high, even if it seems that the profit margin is high, brand partners' actual profit space is nowhere to be found.
However, Red Hua is different.
Her live streaming room has an extremely low return rate, and even those broken bags with holes in them are almost never returned.
As for Red Hua herself, she's very shrewd. She knows that if she brings in goods worth several thousand yuan, such as bird's nest or skincare products, although the commission is higher and profit is greater, if consumers discover that the product is not good, they will definitely choose to return it at the first opportunity.
So, she has her own business principles, with the first one being: the price for live-streaming orders, which should not exceed 99 yuan at most. Only this way can you reduce the return rate to its lowest.
Because she knows that consumers' love also has a ceiling!
Nineteen yuan nine buys a bunch of garbage bags, twenty-nine yuan nine buys a bunch of one-time use bath caps for preservation film, and ninety-nine yuan buys five towels that may or may not be pure cotton. Even if the quality is bad, at least it's usable.
The garbage bag may have poor quality, but it can still reduce the packaging;
The preservation film may be unknown whether it's clean or not, but wrapping leftover food and rice can still achieve some effect;
A towel that cannot be used for washing one's face can still be used as a cleaning cloth.
In any case, these things are not expensive, and consumers just buy them casually to show their love. After all, when they see someone raising funds for charity, they're genuinely moved to donate 180 yuan or more. And on top of that, they get the product, which is a two-for-one deal.
Moreover, returning such items is very troublesome; you have to submit a return application and wait for inspection, then place an order for expedited shipping, package it well, and pay the shipping fee.
The shipping fee itself is not transparent. For large customers, as long as they spend over 2 yuan, they can send it nationwide. Small customers may need to start from at least 10 yuan.
So, for consumers, it's better to just keep the items and feel more satisfied rather than going through all that trouble.
It's because she maintained an extremely low return rate that she can request the brand to increase her commission. For example, yesterday's towel, someone else carried goods and made a single sale with a commission of twenty yuan, but since she rarely had returns, her commission increased to thirty percent, or thirty yuan per single sale.
The brand is also willing to give her a higher commission because, after all the accounting, the profit rate she brings them is even much higher than that of general hosts.
Yesterday, she sold 1.1 million yuan according to a 5% return rate, and her pre-tax commission was over 310,000 yuan. JrNovels.com