Scan the QR code in the image to register

"When the BD suggested I become a group leader, they listed all the benefits, but I was only thinking about protecting my store's business, never expecting to make money from this," said a supermarket owner.

-01- The BD Who Knows the Enemy and Knows Himself

When the number of group leaders in each city had not yet reached saturation, in Wuhan, a Meituan Youxuan BD could earn about 150 yuan for developing one group leader, and Duoduo Maicai BD could earn about 160 yuan for developing one group leader.

A BD mentioned in a conversation with Retail and E-commerce Observation, "The pitch to develop group leaders usually revolves around words like 'easy, high commission, platform traffic push.' The killer move is to say, 'If you don't do it, people around you will, and then you'll have no business.' This trick is mainly aimed at those running supermarkets or fruit stores, because community group buying has the biggest impact on their business."

For barbershops, lottery shops, and courier points, the pitch uses "high commission, fast after-sales." A group leader surnamed Zhu in Wuhan has already applied to two platforms, but new platform BDs still come to invite him to become a group leader for their platform, using the reason, "If one platform makes money, isn't it better to earn from two?"

A supermarket owner told Retail and E-commerce Observation, "Those promoters are very skilled; they can calculate that my monthly profit is 15%, and then say that community group buying group leaders can get 10-20% commission, so I simply couldn't refuse."

-02- Platforms and Group Leaders Drift Apart

While BDs are recruiting new group leaders, platforms are also using various methods to eliminate ineffective group leaders.

According to Retail and E-commerce Observation, several leading community group buying platforms have adopted group leader elimination mechanisms, mainly in the following ways: First, stipulate the number of store reposts; if the number is not met, the platform reduces the group leader's traffic push through technology. Second, stipulate a weekly total sales volume; if not met, the store is closed. Third, persuade group leaders face-to-face to close their stores.

A Meituan Youxuan group leader in Hangzhou said, "A few days ago, the promoter found me and said I need to sell 20 items a day, otherwise I'll be automatically deregistered by the backend." She also said that to avoid being deregistered, she would buy the missing items herself to complete the task.

Retail and E-commerce Observation speculates that the establishment of a minimum sales system will cause group leaders whose points are about to be cancelled to spontaneously purchase platform products, thus deriving that part of the sales of low-priced products on the platform comes from the group leaders themselves rather than customers.

"Actively purchasing a large number of platform products" is something that group leaders who run physical stores might do, because on one hand, it avoids being eliminated, and on the other hand, buying platform products below market price helps save costs.

For group leaders with geographical advantages and physical stores, the possibility of being eliminated is lower, but for those with poor geographical locations, the elimination system is like a guillotine that could fall at any time.

A Duoduo Maicai group leader told Retail and E-commerce Observation, "My pickup point is on the 17th floor of an office building. Every time I pick up goods, I have to wait for the elevator, and going up and down takes a long time, which results in few repeat customers."

Regarding the elimination system, she said, "Being a group leader is to earn some extra money, about four to five hundred yuan a month, and get familiar with a few people; I'm quite satisfied. Usually, I rely on the natural traffic pushed by the platform, with a few orders here and there. Facing this system, I can only be pushed around; it's quite helpless."

Besides being eliminated by the platform, many group leaders also voluntarily leave community group buying platforms.

At 6 p.m. on January 13, in a customer service group of a community group buying platform, a group leader posted a message: "The goods haven't arrived at this time, and I got scolded by a customer." As soon as the message was sent, the group exploded, and various group leaders came out to report the problems they encountered.

One group leader complained, "Every day the goods don't arrive, but the backend automatically notifies customers to pick up. When customers come to pick up, I don't have the goods; it's very awkward." Another group leader said, "I want to close the store, but it was rejected, and customer service doesn't serve." Some group leaders said, "Every delivery doesn't have an order list, and sorting is a hassle," and "The goods arrive at 6 p.m. every day, and customers can't even make dinner on time; I'm going to close the store!"

Slow delivery and low unit price are the words group leaders mention most. A Duoduo Maicai group leader in Shenyang calculated an account for us: "I spend three to four hours a day receiving goods, sorting, and receiving customers. Yesterday's sales were 1,255 yuan, and I got 56 yuan in commission and rewards, which means I earn 14-18 yuan per hour, not counting the cost of my bags. Moreover, Duoduo Maicai's commission rate is getting lower and lower; now it's hard to even get 10%. It's not worth doing."

-03- Different Group Leaders Spark Different Sparks

Community group buying group leaders are leaving the platform either by being expelled or voluntarily, but this doesn't mean they can't survive. Boss Zhang, who lives in Guizhou, is a typical example.

He has a 600-square-meter supermarket. When community group buying first became popular, a platform invited him to become a group leader, but he didn't agree.

Facing community group buying, he chose to go it alone.

"I made a mini-program and operate it myself. When new customers come to the supermarket, I recommend they use the mini-program to purchase. The next day when the goods arrive, I deliver them to the customers in a centralized manner. Every time I submit orders to the engineering department, it's at least seven or eight thousand."

Because Boss Zhang's supermarket is next to a residential area, he often maintains customer relationships, so he has many customer resources, and customers trust him.

It's worth noting that from early-stage product selection to warehousing and distribution, he does everything by himself, so he is particularly busy every day. With the words "I need to update the mini-program; let's chat when I'm free," he hurriedly ended our conversation.

Besides opposing the platform, some people have a relationship with the platform that is seemingly harmonious but actually not.

(The image does not correspond to the article content)

"I'm also making money as a community group buying group leader, but I'm doing it secretly," a Meiyijia franchisee told Retail and E-commerce Observation. "I registered as a group leader on 5 platforms, have 3 WeChat accounts with 5,000 people each and 6 WeChat groups, and earn 4-5 thousand a month from being a group leader, barely enough for food."

Meiyijia does not allow franchisees to privately sell products from other platforms in their stores, nor does it allow them to purchase goods from other channels, but this franchisee did both.

He doesn't dare to make a big fuss about receiving and delivering goods; if someone asks, he says it's stocking up. Of course, it might really be stocking up; Group Leader Jin often takes community group buying goods to sell in his own store.

According to Retail and E-commerce Observation, it is now very common for convenience stores and supermarkets to purchase goods from community group buying platforms, and even some vegetable markets in certain areas do this. A vegetable market in Xihu District, Hangzhou, is an example; every morning, it takes a large amount of fresh vegetables from the Meituan Youxuan driver's car and resells them.

When talking about the gameplay of fission users, the franchisee said, "There's no trick; it's just about accumulation. I've been open here for 3 years, attracting customers mainly through group entry discounts and home delivery."

Regarding fission gameplay, a campus group buying leader in Nanjing, whose consumer group is mainly students, has some views.

"Every time I open an agency and build a group at a school, I first find the heads of various clubs and give each other benefits. In the early stage, I give them gifts, and then promise that once the group is established, they can promote their clubs. Generally, club heads are also students and easy to talk to, so the group size quickly increases." Currently, this leader has more than ten thousand-person QQ groups in different schools.

During the conversation with Group Leader He, "temperature" was the most frequently mentioned word. Retail and E-commerce Observation believes that college students are in the last stage before entering society. At this time, they are mature with their own ideas and like to come into contact with new things. A simple interaction or exchange can make them friends and warm up the relationship.

After entering society, it becomes harder to raise the temperature, so students have always been a group that is "easy to make money from."

Source: Retail and E-commerce Observation (ID: sqtggc) Author: Zhu Yuchen