Category Archives: Blog of the Month

Blog of the Month: China Realtime Report

The Wall Street Journal continues to produce excellent content in their China focused blog “China Realtime Report”, and May was particularly juicy. Read this post here or see below.

Your thoughts are welcome, as always!

John Lin, chief technology officer of eBay’s Asia Pacific operations, thinks eBay’s marketplace may yet make a comeback in China.

The company, which used to have a domestic Chinese consumer-to-consumer, or C2C, auction website, largely pulled out of the market in 2006 after Alibaba Group’s Taobao.com gobbled up its market share by undercutting its fees. Taobao executives say they plan to continue allowing merchants to sell without paying commissions, and Taobao still has the lion’s share of the online C2C market, but the rivalry between two companies has since taken a more friendly turn, with Alibaba Group’s wholesale platform AliExpress acceptingonline payments via eBay’s PayPal, and with executives on both sides saying cooperation and competition can go hand in hand.

EBay’s current operations in China remain small compared to Alibaba Group and other Chinese e-commerce companies like DHGate, but like PayPal, the company has refocused its energies on export-oriented merchants in China who want to reach overseas buyers on its international websites. In the years since giving Tom Online control of its Chinese marketplace, eBay has created a Chinese Web portal, ebay.cn, a customer support team and a suite of value-added services to acquire more of these types of customers.

Since refocusing eBay’s China business, “business has been growing pretty nicely,” Lin said in an interview at the company’s Shanghai office on Wednesday. He declined to say what percentage of eBay’s marketplace transaction volume came from Chinese merchants, but said that China makes up an increasing percentage of the company’s $60 billion overall transaction volume, with more than double-digit growth every year.

Like most other e-commerce companies in China, eBay’s approach to Chinese clients requires much more hand-holding than would be needed in other markets. Lin says the local customer support team, which consists of dozens of people, must constantly call and otherwise stay in contact with Chinese merchants to advise them on how to improve their global listings. The support team makes recommendations to customers about discontinuing the sales of products that infringe on intellectual property, and about creating free shipping policies, which are more attractive to U.S. buyers. EBay also negotiates with logistics operators and translation companies to provide better rates for merchants who want to use their services.

“In the domestic market today there is still no monetization” because the standard practice, set by Taobao.com, is not to charge merchants commission for listing, Lin said.

“EBay was very frustrated with the low margins in the domestic market in China. I hate to say this, but it’s not a public service,” he said. “We specialize in high margin business,” and cross border trade is “highly profitable.”

He added that eBay’s Chinese merchants, which are predominantly small to medium-sized businesses (in contrast with the high percentage of consumer sellers in the U.S. who aren’t full-time merchants), pay slightly higher rates than U.S. domestic sellers do.

While eBay clearly doesn’t buy into Taobao’s “free” strategy, however, the Chinese website has continued to grow at warp speed in terms of transaction volume, and is, in fact making revenue by other means including sales of keyword-advertising. Analysts estimate Taobao earned between $200 million and $250 million in revenue last year.

Lin and eBay Marketplace Development Director Dandan Cheng argue that price-cutting can lead to a never-ending vicious cycle, in which Chinese companies may never find a way to charge customers, especially if competitors are waiting to undercut their prices when they finally do. Lin says that by building its brand among export-oriented merchants, eBay is “well-positioned for future development in China,” in both the cross border and domestic markets.

Small Business Blogging Basics

For small businesses, blogs are useful for communications, PR, and marketing purposes. They can also be used as a content management system for a Web site. If you’re thinking of starting a blog for your small business, here are 10 tips:
1. Set goals and answer, “Why are we starting a blog?”
Do this before going out and registering a domain name or anything else. Is the blog going to serve as a journal for starting the business? Is it a search marketing tool? Is it to be used to demonstrate thought leadership and create credibility? Will it be a communication tool for customers? Will it also serve as the main company Web site? Is the purpose some or all of the above?
2. Decide your address.
If the purpose of the blog is to support company brand and audience, then the URL should be part of the company Web site. Ideally, the blog hosting situation allows for a sub directory such as companysite.com/blog.  Otherwise, a sub-domain such as blog.companysite.com will work and you can can host the blog elsewhere, separate from the company Web servers. (IT will like that.)
If the purpose of the blog is independent of the primary company brand, or messaging, then a dedicated domain name such as topicgoeshereblog.com might work better.
It’s tempting to use a keyword-only domain name, but those keywords will not be a silver bullet for search engine rankings. A catchy, meaningul brand name for the blog will go much farther as content can always be optimized for search engine rankings.
3. What blog software to use?
In most cases, WordPress is the way to go. An inexpensive Linux platform hosting account that supports PHP and mySQL can be secured for $10-$20 per month. However, should the blog get really popular, expect to upgrade to support increased demand. It’s entirely worth it.
The blog software will need to be installed on the server that will host it and the database will also need to be set up. This is fairly straightforward, but in all honesty, it’s best to have someone that knows what they’re doing help. As an example, I do very little of the technical work on our blog and prefer to have a specialist (Thomas McMahon) take care of maintenance, adding plugins, design, and functionality updates. We have outside programmers do any heavy lifting in the application development department.
WordPress software is open source, ie free, so if you are code/technically savvy and you have the time to figure it out, it’s certainly doable. There is no one “right way” to setup a blog. There are literally hundreds of shades of gray.
It can cost a hundreds to thousand of dollars for a blog consultant to install, set up, and customize the design of your blog. You’re not paying for the software, you’re paying for expertise that will save you MONTHS of time and allow you to get to market more quickly and efficiently.
4. Modify the design.
After installation of the core blog software, there are a number of customization tasks.
First, the blog design should be modified to match your branding. If you don’t hire a consultant to do this, there are many free templates that can then be customized, but many of them require a link to the author at the bottom. Personally, I’m not a fan of those, but they are a low/no cost place to start. Design customization involves modifying the CSS, JavaScript, graphics, and possibly a few database elements.
The second set of customization tasks involves plug-ins to improve the adminstration, front end functionality and the SEO friendliness of the blog.
5. Plan your content.
In concert with the purpose of the blog, it’s important to generate a basic editorial guideline for creating content.  The easiest way to manage this is by creating categories for the kinds of content you plan on posting.
Before you create those categories, it’s a good idea to do some keyword research as the categories will become excellent repositories of related content. Why not make it even easier for search engines to understand and rank them?
Once you identify which keyword phrases best represent the content you’ll be publishing, use them to name your content categories. Each time you make a blog post, that entry will be associated with one or more categories, creating a very search engine friendly repository of content.
Create an editorial calendar or schedule of posts to keep you on topic for your audience and true to the purpose of the blog. Leverage interactions with blog readers as well as your analytics to know if your content and keyword picks are productive or not.
6. Who will blog?
In the case of most small businesses, the blogging team is a team of one. That’s fine, just be sure to document what’s working and what’s not so when the time comes, you can get your blogging team mate up to speed quickly.
Since blogger’s block (like writer’s block) can really dampen a good thing for a small business blog, go ahead and keep a good number of posts in draft mode. Add to them as you get new ideas and inspiration. Or facts and examples. That way, you’ll have a steady stream of blog posts ready to publish in advance. In fact, you can schedule blog posts in advance using WordPress.
7. Plan to interact.
Blogging in a vaccum is inevitable blogging death. It’s essential that you solicit comments in your posts, respond to comments quickly, create and enforce a commenting policy. Don’t covet the comments either. Visit other blogs in your industry and write useful comments. Those bloggers may notice you and it can become something more, like an invite for a guest post, collaboration or simply a new online friend.
Make it easy for readers of your blog to save and share your content with sharing buttons or widgets. It pays to create accounts on the more popular services and develop social networks there. Your contacts on Digg, Delicious, StumbleUpon and similar services will watch for your next post and vote for the good stuff, which can drive your content to be exposed on more popular areas of those Web sites. More exposure can mean more traffic.
8. Socialize.
RSS feeds come with blogs and it’s worth taking the time to make sure the RSS feed is readily available and obvious for people to subscribe. Submit your blog and RSS feed to our HUGE list of blog and RSS directories.
Set up social profiles on sites such as Twitter, Facebook, and LinkedIn as appropriate and automate the sharing of links from your blog posts to those services. In other words, you could use a service like TwitterFeed to publish your latest blog post to Twitter and Facebook automatically.
Be sure to publish your blog URL everywhere you publish your web site address.
9. Make your pages.
If you’re using the blog as a CMS for a small business Web site, then make your static Web pages such as those for About our Company, Product/Service pages, Contact Forms, etc. The blog can be customized to have a home page like any other Web site as well. That way, visitors arriving on your site can see what they expect from a company selling products/services. At the same time, blogging creates a rich and frequent source of useful content that’s syndicated via RSS, promoted automatically to relevant social channels and leaves the door open for interaction via comments.
10. Use blog and social media analytics.
It’s important that you set goals for the blog, a plan to execute tactics and most of all, measure progress. Most Web site measurement is focused on web analytics and metrics specific to different types of marketing such as with email, SEO or PPC.  Standard web analytics software such as Google Analytics will address the vast majority of your needs.
For more small business blogging tips, visit Online Marketing Blog.

It has been a little while since I have highlighted a Blog of the Month here, but this month I feel compelled to do so.Blog101

As many of my regular readers will know, through this blog I share with small business owners my experiences and influences as an entrepreneur, insights on emerging market trends and the relevant ecommerce happenings in China and around the world. I also run a blog on Practical eCommerce that looks specifically at the growing importance of China as a global supply base.

Aside from the fact that I enjoy sharing any information I think others will find valuable, my aim is also to demystify the entrepreneurial process and open up China as a supplier hub for those that will benefit from it most – Small businesses.

Lee Oden, CEO of TopRank Online Marketing, believes that for small businesses, blogs are useful for communications, PR, and marketing purposes. They can also be used as a content management system for a Web site. In his blog on AllBusiness.com this month, he shares with readers “10 Essential Tips for Starting a Small Business Blog“. His quick list will help those of you considering starting a blog to get off on the right foot. And once you have, don;t forget to add you link to the comments section here!

1. Set goals and answer, “Why are we starting a blog?”

Do this before going out and registering a domain name or anything else. Is the blog going to serve as a journal for starting the business? Is it a search marketing tool? Is it to be used to demonstrate thought leadership and create credibility? Will it be a communication tool for customers? Will it also serve as the main company Web site? Is the purpose some or all of the above?

2. Decide your address.

If the purpose of the blog is to support company brand and audience, then the URL should be part of the company Web site. Ideally, the blog hosting situation allows for a sub directory such as companysite.com/blog.  Otherwise, a sub-domain such as blog.companysite.com will work and you can can host the blog elsewhere, separate from the company Web servers. (IT will like that.)

If the purpose of the blog is independent of the primary company brand, or messaging, then a dedicated domain name such as topicgoeshereblog.com might work better.

It’s tempting to use a keyword-only domain name, but those keywords will not be a silver bullet for search engine rankings. A catchy, meaningful brand name for the blog will go much farther as content can always be optimized for search engine rankings.

3. What blog software to use?

In most cases, WordPress is the way to go. An inexpensive Linux platform hosting account that supports PHP and mySQL can be secured for $10-$20 per month. However, should the blog get really popular, expect to upgrade to support increased demand. It’s entirely worth it.

The blog software will need to be installed on the server that will host it and the database will also need to be set up. This is fairly straightforward, but in all honesty, it’s best to have someone that knows what they’re doing help. As an example, I do very little of the technical work on our blog and prefer to have a specialist (Thomas McMahon) take care of maintenance, adding plugins, design, and functionality updates. We have outside programmers do any heavy lifting in the application development department.

WordPress software is open source, ie free, so if you are code/technically savvy and you have the time to figure it out, it’s certainly doable. There is no one “right way” to setup a blog. There are literally hundreds of shades of gray.

It can cost a hundreds to thousand of dollars for a blog consultant to install, set up, and customize the design of your blog. You’re not paying for the software, you’re paying for expertise that will save you MONTHS of time and allow you to get to market more quickly and efficiently.

4. Modify the design.

After installation of the core blog software, there are a number of customization tasks.

First, the blog design should be modified to match your branding. If you don’t hire a consultant to do this, there are many free templates that can then be customized, but many of them require a link to the author at the bottom. Personally, I’m not a fan of those, but they are a low/no cost place to start. Design customization involves modifying the CSS, JavaScript, graphics, and possibly a few database elements.

The second set of customization tasks involves plug-ins to improve the administration, front end functionality and the SEO friendliness of the blog.

5. Plan your content.

In concert with the purpose of the blog, it’s important to generate a basic editorial guideline for creating content.  The easiest way to manage this is by creating categories for the kinds of content you plan on posting.

Before you create those categories, it’s a good idea to do some keyword research as the categories will become excellent repositories of related content. Why not make it even easier for search engines to understand and rank them?

Once you identify which keyword phrases best represent the content you’ll be publishing, use them to name your content categories. Each time you make a blog post, that entry will be associated with one or more categories, creating a very search engine friendly repository of content.

Create an editorial calendar or schedule of posts to keep you on topic for your audience and true to the purpose of the blog. Leverage interactions with blog readers as well as your analytics to know if your content and keyword picks are productive or not.

6. Who will blog?

In the case of most small businesses, the blogging team is a team of one. That’s fine, just be sure to document what’s working and what’s not so when the time comes, you can get your blogging team mate up to speed quickly.

Since blogger’s block (like writer’s block) can really dampen a good thing for a small business blog, go ahead and keep a good number of posts in draft mode. Add to them as you get new ideas and inspiration. Or facts and examples. That way, you’ll have a steady stream of blog posts ready to publish in advance. In fact, you can schedule blog posts in advance using WordPress.

7. Plan to interact.

Blogging in a vaccum is inevitable blogging death. It’s essential that you solicit comments in your posts, respond to comments quickly, create and enforce a commenting policy. Don’t covet the comments either. Visit other blogs in your industry and write useful comments. Those bloggers may notice you and it can become something more, like an invite for a guest post, collaboration or simply a new online friend.

Make it easy for readers of your blog to save and share your content with sharing buttons or widgets. It pays to create accounts on the more popular services and develop social networks there. Your contacts on Digg, Delicious, StumbleUpon and similar services will watch for your next post and vote for the good stuff, which can drive your content to be exposed on more popular areas of those Web sites. More exposure can mean more traffic.

8. Socialize.

RSS feeds come with blogs and it’s worth taking the time to make sure the RSS feed is readily available and obvious for people to subscribe. Submit your blog and RSS feed to our HUGE list of blog and RSS directories.

Set up social profiles on sites such as Twitter, Facebook, and LinkedIn as appropriate and automate the sharing of links from your blog posts to those services. In other words, you could use a service like TwitterFeed to publish your latest blog post to Twitter and Facebook automatically.

Be sure to publish your blog URL everywhere you publish your web site address.

9. Make your pages.

If you’re using the blog as a CMS for a small business Web site, then make your static Web pages such as those for About our Company, Product/Service pages, Contact Forms, etc. The blog can be customized to have a home page like any other Web site as well. That way, visitors arriving on your site can see what they expect from a company selling products/services. At the same time, blogging creates a rich and frequent source of useful content that’s syndicated via RSS, promoted automatically to relevant social channels and leaves the door open for interaction via comments.

10. Use blog and social media analytics.

It’s important that you set goals for the blog, a plan to execute tactics and most of all, measure progress. Most Web site measurement is focused on web analytics and metrics specific to different types of marketing such as with email, SEO or PPC.  Standard web analytics software such as Google Analytics will address the vast majority of your needs.

Seasons Greetings

With Halloween just behind us, Thanksgiving ahead and Christmas around the corner, I’ve been thinking a lot about holiday promotions (as well as my waistline!). And it seems I’m not the only one.

EBay have recently launched a new ad campaign, which focuses on holiday products,  and a new survey conducted by BIGresearch for Shop.org found that online retailers will be revamping websites, focusing on social and offering free shipping, in some form, this holiday season and, for a third, this activity will start earlier this year than last.happy-holiday

But competition is hot, and employing new methods to reduce costs and attract customers will be critical.

Through my company, DHgate.com, I’ve noticed an increasing trend for SMEs to buy small volumes at higher frequency, allowing closer management of inventory and quick response to consumer trends – A low-risk strategy particularly valuable during holiday periods.

For etailers looking to differentiate their marketing this season, the options are extensive. I came across the Vastplanet blog recently and thought it was interesting. It includes some worthwhile pointers; you can read the whole article here or view my selection of highlights below.

What have you got planned for your upcoming promotions? I’d love to hear about tips and lessons, so please feel free to leave a comment!

Customer Service / Operations:

Holiday Shipping – plan special rates that are easy to understand and provide ETA chart with cut off dates for customers on the shopping cart. Here are important dates to know:

11/27 Black Friday

11/30 Cyber Monday

12/07 Green Monday (expect heavy traffic)

12/14 Brown Monday (last day for free shipping)

Gift Services:

Last Minute Holiday Suggestions – great idea to choose some rapidly shipped options for the time constrained consumers.

Promotion:

Coupons – consumers want them and this will be a key driver this holiday season. Consider Free Shipping, Save $X when you spend $Y and % off scenarios.

SEO:

Consider Facebook advertising, Retargeting, Ad Networks and Content Networks to maximize coverage

Form a Partnership:

Niche Online Store – create a new store to capitalize on a rising market trend and benefit during the holidays. You can go to Google Trends and get some Ideas on what’s popular.

Sourcing in China: The Challenges

Somebody’s dad once said “nothing worthwhile in life is easy.” I use this expression to keep our focus when making a new innovation that will make life easier for our buyers.

I’ve run across some blogs of folks who give interesting insights on sourcing in China, and one of those blogs is the Silk Road International Blog, run by a guy named David Dayton, who lives in China and inspects products in Chinese factories prior to export. There is a lot of brutal realism here, and sometimes the author gets a bit cynical, but all told you can see that he really believes that China can be a great place to buy great products. Check it out at http://silkroadintl.net/blog/.SourceCode

A somewhat different perspective is offered by Cyrill Eltshinger in his book Source Code China. Cyrill is one of those interesting people that make doing international businesses so much fun. He’s from Switzerland, where he was drafted into the Army and stayed long enough to become a junior officer in their special forces. After he left the Swiss Army (no knife jokes, please) he went back to college to get his degree – at Texas A&M.

If running into a Swiss Aggie in Beijing is not cool enough, he’s also written a book about his years running a Beijing company that wrote software for huge global corporations. His book has some superb insights about doing business internationally and in China, and is very much worth the read.

Blog of the Month: A Secret Weapon for Business Owners

I got really excited when I came across this post by Rieva Lesonsky on The Small Business Blog because a) it provides information that brings real value to US small business owners and b) it represents the very spirit of sharing that I hope to encourage here on my own blog.

Rieva has written about the Association of Small Business Development Centers, a body that provides support to entrepreneurs and small businesses across America. I know not all of you are in the U.S., and I hope those of you in other locations will share details of the body that offers similar services in your area. I will also do a bit of further investigating!

asbdc-logo

Because small business owners and entrepreneurs most often have to be the CEO, sales manager, marketing director, accountant, web developer, legal team, etc all rolled into one, it is great to know that affordable (or free) government subsidized support is out there. And this blog lets you know how to find it.

Read the whole article here. Here is the gist:

“… the SBDCs offer free consulting and low-cost training to the more than one million U.S. business owners who pass through their doors every year. That means you. Need help writing your business plan? The SBDC can help. How about learning how to optimize your Web site? They can assist you with that as well. In fact, SBDCs can help you learn the intricacies of business software, teach you about the latest business trends, and even fill you in on how to use sites such as Twitter or Facebook to grow your business.”