Jing Li, Weber Xu, Long Chen, Liwei Gao

E-storage“Providing Chinses SMEs with World-class Logistics Services”

Customer DiscoveryInterviews in last 24 hours: 12Total interviews to date: 67# Manufactures: 34# International Trade Companies: 15# US Importers: 6# Partners: 12

Chart Title

Business Model

Business Model Canvas

Plan Forward 3 1

2Introduction for E-storage

What will We Do Next.

What We Learnt…

Agenda

Chinese SMEs

Chinese SMEs US Consumers

US Consumers

International Trade

CompanyRetailersWholes

alersPort US

Importer

Chinese SMEs Middle Channels US Consumers

Traditional International Trade Process

Chinese SMEs

Chinese SMEs

Port

US Storage

WebsOnline Platform

US Consumers

US Consumers

E-Storage

Chinese SMEs Middle Channels US Consumers

New International Trade Process

The Project E-storage: Business Model Canvas

• Warehouse Company

• USPS/Fedex/UPS• Freight company• Software

Developer • Trade shows• Website• Export association

Order handling, Warehouse storageWarehouse, Shipping, Platform Development/Maintenance, Human Capital

Chinese Supplier

• high turnover rate products

• no storage in the US

• large order quantity

• Trade show promotion

• Social Media• Personal Network

• Inventory Management

• Shipping• Marketing• Customer Service

• Warehouse• Online Platform• Inventory

Management system

• Costly and slow for Chinese suppliers to ship their products overseas.

• Fast and cheap shipping

• Low cost and efficient oversea distribution

Business Model Canvas (Day 1)

Value Proposition

Chinese SMEs

Chinese SMEs US Consumers

US Consumers

International Trade

CompanyRetailersWhole

salersPort US

Importer

• Lower cost to deliver to the US customers

• Faster shipping to US customers

• Help Chinese SMEs to expand more into the US market.

Chinese SMEs

Port

US Storage

WebsOnline Platform

US Consumers

US Consumers

E-Storage

Chinese SMEs

Customer Segments: What we thought (Day 1)

We are Chinses suppliers• We have high turnover rate products• We have no storage in the US• We have large order quantity

We are Chinses supplier: • We want stable and large volume

orders. • we do not have our own brand so we do

not need to contact with customers• We are not familiar with US market. • We do not have the resources and

finance to try to expand to the US market.

What we thought The Reality

Give Up

Customer Segments: What we learnt (Day 2 - 4)

We are Chinese small and medium Enterprise with our own brand.

We want to expand to the US market.

we want to open online sales channels at US, but we are not familiar with US market.

We are small and medium international trade companies.

We have been selling to the US on Ebay and Aliexpress, but the oversea shipping cost is high. (it’s costly to ship directly from China to US)

It will be convenient for us to distribute our goods if we have warehouse storage in the US. But it is too expensive.

We are big international trade company.

We have own storage at US.

Give Up

Customer Segments: What they need (Day 5)

Interests in US market

Online Sales channels in US market

x

Value Proposition Canvas

Gain Creators

• Warehouses closed to US customers

• Cooperation with US online sales channels

• Economics of scale• Bilingual personnel

providing better communication and services

Pain Reliever

• Lower cost to deliver to US customers

• Faster shipping to US customers

• Helping SMEs to expand into the US market

Products and Services

• Efficient delivery of goods• Larger market potential• More profit achievement

Gains

Pains

• Costly to ship overseas• Slow shipping• Culture & language

barriers in communication

• Expand to the US market

• US local storage• Ship goods to US

customers

Customer needs

Customer SegmentsValue Proposition

Match

Chinese SMEs interested in the US market.

Sales Representatives

E-STORAGE

Chinese SMEs

Export Asso.WebsTrade

Shows

SMEs that sells in the US but deliver their goods from China.

Ads and Delivery Collaboration

Members that export goods to the US.

Membership and Collaboration

Channels and “Get Strategy”

Inventory Information

Sales Process

Payment

Product Delivery

Revenue Model

Order handling FreightWarehouse

US consumers

Webs

US Storage

Online Platform

E-Storage

Chinese SMEs

Revenue Model

E-StorageChinese SMEs

E-Storage Services Fee = Oversea Shipping Fee + Duty + Order Handling Fee+ Storage Fee+ US Local Distribution Fee + Premium Services Fee

Oversea Shipping Fee: The Shipping Cost from China Port to US Warehouse

Oder Handling Fee: The Fee for Checking in and Checking out of the Warehouse

US Local Distribution Fee: The Distribution Fee from US Warehouse to US customers.

Premium Service Fee: Includling Remote Monitoring Fee, Online Management Fee, Oversea Marketing Fee

Warehouse

Inventory Management

System

Online Platform

Freight Company

Relationship

Logistics Company

Relationship

Key Activities/Resource/Partners

Inventory Management

Shipping

Real Estate Company: Warehouse Rental

UPS/Fedex/USPS US online shopping Websites

Flexport Freight Company

Software Developer

Software Developer

Key Partners

Key Activities

Key Resources

• Warehouse Company

• USPS/Fedex/UPS

• Freight company

• Software Developer

• Flexport

• US online shopping Websites (e.g. Amazon, Ebay, Wayfair)

• Marketing companies for SMEs

• Trade shows• Websites • Family connections• Export association

Order handling, Warehouse storage, freight Warehouse, Shipping, Platform Development/Maintenance, Human Capital

• Trade show promotion• Social Media• Personal NetworkGet- Trade Shows/Websites/Family Connections/ Export Asso.

Keep- Loyalty Plan/Outreach Program

Grow- Cross-sell/Referrals

• Inventory Management• Shipping• Marketing• Customer Service

• Warehouse• Online Platform• Inventory Management

system• Logistics/Freight

Company Relationship

• Shipping Cost Saving

• Storage Cost Saving

• Delivery Time Saving

• Build new sales channels (Marketing)

SMEs with US online channels (e.g Amazon, Ebay, AliExpress, Wayfair)

SMEs without US online channel but still interested in US online market• International trade

companies• SMEs who want their

own brands

Chinese Manufactures

Business Model Canvas (Day 5)

Plan Forward: What will we do next?

• Testing out the components of collaboration model, such as payment method, cooperation cycle, price and regulation rules.

• Interviewing more potential partners, and validating the cost structure

• Finding out an estimate of all the potential costs.

• Test how does customer want to pay our services, such as based on product size, product weight, or product quantities.

• Bargaining the price range per unit, the price range per pound, and the price per cbm.

• Continue interviewing more potential customers and asking for their needs

• Looking for better way to cooperate with customers in order to match their needs

Customers Partners

Cost Revenue

E-storage