sinovels Chapter 127 Breaking the Ice: The Secondhand Market
Chapter 127 Breaking the Ice: The Secondhand Market
Chapter 127 Breaking the Ice in the Secondhand Market
In November, the sun in Shenzhen still carried the lingering warmth of summer, and the backend data of the local life website continued to break records.
The rental sector has seen a stable daily increase of over two hundred listings, while the recruitment sector has seen a steady rise in coverage across manufacturing companies, small street shops, and technology companies since implementing a combination of measures such as area-based contracting and light headhunting services.
The upgraded server that Zhou Bin upgraded is still holding up for now, and the website traffic curve continues to climb.
Three reports were spread out on Lin Feng's office desk.
One is a monthly financial report, showing that MP3 sales and ringback tone revenue continue to provide financial support, and the company's cash flow is healthy.
The other report is the monthly business expansion report, showing a steady increase in the number of real estate agency contracts signed.
The third report is the monthly report on recruitment, with plans to complete full coverage of office buildings in Longhua Industrial Zone and Luohu CBD before the Spring Festival.
After reading the three reports, Lin Feng summoned Lin Xiaoqiang, Zhang Ming, and Wei Zejun to his office.
Five minutes later, the three of them entered one after the other.
Lin Feng said with satisfaction, "We've already achieved the number one market share in Shenzhen for the rental and recruitment sectors, and local user habits are gradually taking hold. Next, we need to develop the 'second-hand goods' sector."
"Mr. Lin, I was just about to report to you about the second-hand goods issue." Zhang Ming opened his notebook, which was filled with notes on the feedback from the sales representatives recently.
Last week, a user in the area that Sun Hao is responsible for saw a Nokia phone priced at 800 yuan on our website. The seller said it was 90% new and had only been used for three months.
Users arrange to trade offline, exchanging money for goods, only to find upon returning home that the device is refurbished, with a replaced casing and an outdated battery.
The user contacted Sun Hao to complain, but when Sun Hao called the number provided by the seller, the phone was switched off. This is not an isolated incident.
Zhang Ming sighed helplessly: "For rentals and job postings, our people can go to the property to verify whether the listing is genuine and whether the company is hiring. One trip is all it takes to find out. Second-hand items are different. The item is in the seller's hands, photos can be faked, descriptions can be fabricated, and we can't possibly verify every single item."
Wei Zejun chimed in, "There's also the issue of pricing. There are market rates for renting apartments and market prices for hiring workers, but there are no standards for secondhand goods. The same secondhand MP3 player might be sold for 300 by one person and 500 by another. If the buyer thinks it's too expensive, they'll accuse you of being a scammer; if the seller feels they're losing money, they'll say your platform is bad."
Zhang Ming said with concern, "President Lin, I'm not being conservative. But the secondhand goods business is very risky if we don't do it well. If one user gets scammed, it can affect everyone in an entire dorm and make them stop using our website."
If ten users get scammed, the forum will be full of posts criticizing us. We can't let the reputation we've worked so hard to build for renting and hiring be ruined by this.
"What do others think?" Lin Feng asked Lin Xiaoqiang and Wei Zejun.
"Let's hold off for a bit. Once we have more manpower, let's focus on thoroughly developing our rental and recruitment efforts first, and then consider the secondary market after the New Year," Wei Zejun said.
Lin Xiaoqiang, who had been silent until now, finally spoke up: "I think we can't wait."
Everyone else turned to look at him.
Lin Xiaoqiang stated, "The demand for secondhand goods is huge. There are many people buying secondhand mobile phones, computers, bicycles, and electric bikes. If our website doesn't compete for this business, other websites will take it away."
Hearing that Lin Xiaoqiang could see business opportunities from a market perspective, Lin Feng was very pleased. He didn't rush to speak, waiting for the others to finish expressing themselves.
Zhang Ming countered Lin Xiaoqiang, saying, "There is indeed a demand for second-hand goods, but that doesn't mean we should try to meet that demand."
Have you ever considered that among these people buying and selling used mobile phones, there might be scammers? Inviting a large number of scammers would be tantamount to ruining our reputation.
"But if we don't do it, it's like pushing these real users elsewhere," Lin Xiaoqiang continued, emphasizing the market.
The two men held opposing views, one focusing on risk control and the other on market opportunities; neither was absolutely right or wrong. The most crucial factor was the boss, Lin Feng's, strategy—the decision of whether to proceed or not rested with him.
Finally, all three of them turned their gaze to Lin Feng.
Lin Feng slowly said, "What you all say makes sense. On one hand, there's a business opportunity, and on the other hand, there's a risk. There are millions of people in Shenzhen, and every year during graduation season, home-buying season, and before returning to their hometowns at the end of the year, there's a large amount of idle goods that need to be circulated. Whoever can regulate this market first will be able to seize users' awareness."
Lin Feng was prepared. He stood up, walked to the whiteboard, and picked up a marker.
"The core issue with secondhand goods is actually just one thing: trust. Sellers are afraid that buyers will back out, and buyers are afraid that sellers will cheat them out of their money. Neither side trusts the other. If the platform cannot solve the trust problem, it is just a forum for posting."
"How do we solve this?" Lin Feng asked himself, then answered, "In three steps."
He wrote the first rule on the whiteboard: Credit Score + Real-Name Authentication.
"All users who want to post second-hand items on the local life website must be real-name authenticated through their mobile phone number."
Each user has an initial credit score. After a transaction is completed, both the buyer and seller leave feedback. Positive reviews add points, while negative reviews deduct points. If a complaint is verified, the user's account will be cleared and banned.
Information posted by users with high credit scores will be displayed first; users with zero credit scores will be permanently banned.
"This is similar to the credit labels we use for merchants now," Wei Zejun nodded.
"Yes, it's about transplanting the merchant credit system to individual users. Technically, it's not difficult; Zhou Bin can get it done in a few days." Lin Feng continued writing the second point.
"Offline inspection point".
"We can't verify every secondhand item like we verify properties, but we can provide a safe trading platform for both buyers and sellers."
Merchants in each area who have a good working relationship with us, such as Mr. Liu's appliance repair shop, Ms. Wu's bakery, and the small shop next to the hardware factory, can all serve as inspection points.
Buyers inspect the goods at the store and pay only after confirming everything is correct. The seller receives payment in person, and any problems are resolved on the spot.
"But why are the merchants willing to help us?" Wei Zejun asked.
"Because we can drive traffic to them. A buyer who comes to inspect the goods might also get an appliance repaired, buy bread, or have a key made. For our partner merchants, this is additional foot traffic."
Furthermore, we will display a sign for each inspection point and mark it as a "local certified inspection point" on the local life website, which also serves as brand support for the merchants themselves.
Wei Zejun suddenly realized: "President Lin, your idea is brilliant! I thought we needed to figure out how to pay the merchants extra—we can screen through our current close partners and find a few to pilot first."
Lin Feng nodded and wrote down the third point: Focus on high-value categories.
"There are too many categories of second-hand goods, and if you try to do everything, you won't do anything well. In the early stages, we will focus on three categories: mobile phones, computers, and home appliances."
These three product categories share several common characteristics: high unit price, large demand, and relatively easy verification of information authenticity.
Anyone with a little knowledge can tell if a phone is refurbished or not. Once these three categories are established, we can expand to clothing, furniture, and books.
Zhang Ming looked at the three strategies on the whiteboard, frowned, and thought for a while before saying, "The inspection point plan has a loophole. What if the seller is unwilling to go to the inspection point for the transaction? Some people just find it troublesome and think that cash on delivery is the fastest way."
"Then we'll guide people through the information posting process," Lin Feng said with a smile. "When posting secondhand items, the system will automatically prompt:"
Choosing to make a transaction at a local online marketplace verification point will add five points to your credit score.
Sellers who are willing to use the inspection channel will have their information marked with "Supports Inspection", which will make buyers feel that the seller is more reliable.
Over time, buyers will naturally tend to choose sellers who are willing to inspect goods before purchase, while those who are unwilling to inspect will be naturally eliminated by the market.
"Another issue is the distinction between professional dealers and individual sellers," Wei Zejun added. "Some people occasionally sell a used mobile phone, while others specialize in reselling second-hand digital products. The quality of the information posted by these two types of people is completely different, and the latter is more prone to problems."
"The posting frequency can be limited. Individual users can post a maximum of three secondhand listings per day; any more than three will be automatically blocked by the system."
To post more listings, you must apply for merchant verification, submit a business license or identity document, and go through the merchant channel. Merchants posting secondhand listings must clearly indicate the warranty period and return/exchange policy.
Zhang Ming remembered a name.
"Sun Hao handled the labor dispute at the hardware factory last time, and later helped that college student Chen Xiaojun find a new job."
He's experienced in handling conflicts and meticulous in his work. I'd like him to lead the pilot program for secondhand goods.
"Okay." Lin Feng nodded.
"Let's start with the science park area. Sun Hao has a group of merchants he works well with, so developing them into the first batch of inspection points shouldn't be difficult. Let him pick a few of the best ones, train them properly on the inspection process, and make sure the inspection points don't become new sources of disputes."
Wei Zejun nodded: "I'm working on that on my end as well. This week, we'll compile the rules for posting secondhand items and the credit scoring system into a document, and then ask President Zhou's team to develop and launch it."
"Okay!" With everyone in agreement, Lin Feng instructed them to start implementing the plan immediately.
After the meeting, Lin Feng arranged for Li Ying, who was in charge of online promotion, to post some articles on several local digital forums and university BBSs in Shenzhen to popularize knowledge about second-hand goods trading.
This includes how to identify refurbished mobile phones, how to check the authenticity of computer hardware, and what to pay attention to when buying second-hand home appliances.
The article naturally mentions the verification points, credit scoring system, and support for real-name transactions on local life websites.
Things progressed rapidly over the next three days.
Zhou Bin led the technical team to hold two requirements review meetings and finalized the development schedule for the credit scoring system and real-name authentication function.
The front-end needs to add a mobile phone verification step to the user registration page, the back-end needs to create a new set of logic for calculating and displaying credit scores, and the database needs to add several tables to store user behavior records and evaluation data.
Zhou Bin estimated the workload: the core functions could be launched in two weeks, but optimization and subsequent iterations would take another month.
Wei Zejun sifted through the list of merchants in his hand from beginning to end.
After eliminating those with whom they hadn't cooperated closely enough, or whose owners were unwilling to embrace new things, they finally narrowed it down to ten companies.
After receiving the list, Sun Hao visited each of the ten candidate inspection point merchants one by one.
The first shop we visited was owned by Mr. Liu, the owner of "Honest Home Appliance Repair".
Mr. Liu was squatting at the entrance of his shop, dismantling an old-fashioned CRT television. The back cover was lifted, and the parts were scattered all over the ground.
Sun Hao briefly explained the inspection point situation, but Boss Liu's screwdriver didn't stop: "What goods are being inspected? How are they inspected?"
"Someone bought a secondhand item from our website but wasn't comfortable with it, so they arranged to come to your store to see it. The buyer can look at it and try it on the spot. If there are no problems, they pay; if there are, they don't buy it. You can watch over them and take a look if things get unclear between the two sides."
"I'm not an appraiser, what if I can't tell either?"
"You don't need to do a 100% inspection. For something like a mobile phone, you can insert a SIM card, make a call, check if there are any dead pixels on the screen, test if the buttons are working properly, and try charging it to see if it can be charged."
You understand these basics better than most people. If you encounter a high-quality counterfeit or refurbished item and can't tell the difference, then I suggest the buyer don't buy it.
Mr. Liu put down the screwdriver, stood up, and wiped his hands. "What am I supposed to gain from someone coming to my shop and causing all that trouble?"
Sun Hao explained with a smile: "When buyers and sellers come to inspect the goods, they enter your shop and see that you repair appliances. The next time their TV or refrigerator breaks down, you will be the first person they think of."
Furthermore, we will add a "Local Certified Inspection Point" sign to your website, so your shop will appear at the top of the search results for appliance repair by nearby users.
Boss Liu suddenly understood: "Okay, I'll give it a try. But let's make it clear, I'll only help out, don't come looking for me if anything goes wrong."
"Don't worry, our platform's rules are in place."
After leaving Boss Liu's shop, Sun Hao went to "Old Wharf" Sichuan restaurant, Sister Wu's bakery, and the small shop next to the hardware factory. By the time he finished work that evening, seven out of the ten candidates agreed on the spot, while the other three said they would think about it.
Two days later, the second-hand goods channel of the local life website was quietly updated, adding on-site inspection function and credit points.
At the same time, Lin Feng arranged for Lin Xiaoqiang and Wei Zejun to connect with a group of "seed users" he had.
Among the users who received invitations on the first day, a Shenzhen University student named He Zhiwen posted his first item after being verified:
A used Ericsson T39 mobile phone, priced at 600 yuan, can be inspected offline.
Next to the information, his credit score is 85, which comes from his previous successful rental of two houses on a local online marketplace.
Sun Hao personally called He Zhiwen to confirm the inspection process, and then recommended the information to Li Ying.
That afternoon, Li Ying posted a message on the digital version of Shenzhen University's BBS:
"Graduation season is here, and I just snagged a bargain on a local Shenzhen website. Here's my experience."
The post details how to determine a seller's reliability using their credit score, how to choose products that support inspection, and what to pay attention to during inspection. The article repeatedly mentions the local online marketplace's credit system and inspection service.
Within hours of the post being published, more than a dozen students clicked the link and were redirected to the product page posted by He Zhiwen.
The next afternoon, someone called to schedule an inspection. At Boss Liu's shop, they inserted a card to test the product, checked for wear and tear, and confirmed that all the accessories were complete.
The buyer tried it and found no problems, so he paid 600 yuan in cash.
After the transaction was completed, He Zhiwen's credit score increased by five points, and the buyer gave a five-star review, which read: "The seller described the product accurately, and Mr. Liu from the inspection point helped to check it and confirmed that there were no problems."
This review was automatically displayed below every product listing following He Zhiwen's.
Four more deals were completed in the following three days.
A used desktop computer, a used bicycle, and a set of College English Test Band 4 preparation materials. Each order was completed at the inspection point, and each order has a review record.