The future direction of the small direct mail parcel field has become a widely concerned focus in the industry. With the temporary resumption of T86 policy, many industry insiders hold a cautious and optimistic attitude, but at the same time, it is widely predicted that its cancellation again is only a matter of time. In this context, the "small tax exemption" policy, as a key means for domestic cross-border sellers to maintain price competitiveness, affects the vital interests of many direct mail small package logistics merchants whether it is retained or abolished.
Faced with this potential challenge, the platform has also begun to adjust its strategy and invest more resources and energy into the semi custodial model. Among them, platforms such as TEMU and SHEIN took the lead in action: SHEIN fully promoted semi hosting, providing billions of exposures both inside and outside the site; TEMU, on the other hand, has provided support for merchants to seize market opportunities by launching a one click conversion function from fully hosted to semi hosted, as well as a newly launched advertising function at the beginning of the year. The following is an example sharing of budget allocation strategies and advertising scenarios for TEMU's semi hosted advertising function:
1、 Suggestions for advertising budget allocation
Develop a scientific budget allocation based on the priority and target of the product:
1. High priority products (high conversion products, historical bestsellers):
Allocate approximately 50% -60% of the budget to ensure that these products continue to receive sufficient exposure.
Goal: Maintain conversion rates and maximize profits.
2. Medium priority products (new products, products with high inventory pressure):
Allocate approximately 30% -40% of the budget to help new products quickly open up the market and clear inventory backlog.
Goal: Obtain market feedback and validate the potential of new products.
3. Low priority products (non core products, long tail products):
Allocate approximately 10% -20% of the budget to test market response at a low cost.
Self labeling: Assist in increasing sales and supplementing traffic gaps.
2、 Example of advertising scenario
1. High conversion products with insufficient exposure:
Product A is a high-quality vacuum cleaner with slightly higher customer orders, with a conversion rate of 7% in the past 7 days, but only 500 exposures.
Advertising plan: Increase the daily budget to $500, adopt platform recommended ROAS, and prioritize advertising on the homepage and category pages.
Goal: Increase exposure to 5000 times within 7 days while maintaining conversion rate.
2. Historical bestsellers with decreased exposure:
Product B was once the best-selling item in the shower head category, but its exposure has decreased by 30% in the past 14 days.
Placement plan: Restore resource slot advertisements, update copy, add the words "Classic Hot Product Limited Time Special Offer", and advertise during high-frequency active periods.
Goal: Restore exposure to its original level and increase conversion rate by 10%.
3. New product, high inventory:
Product C is a newly launched room humidifier with a stock of 5000 units and a high profit margin.
Placement plan: Set low ROAS targets in the initial stage and use a combination of keywords and homepage advertisements for placement; Simultaneously monitor conversion data and gradually adjust the budget.
Goal: Sell 50% of inventory in the first month, accumulate user reviews and market feedback.
At present, advertising is in its early stages, and more gameplay will be iterated in the later stages!