China&#;s unmanned retail transaction volume keeps going up. As predicted, by it will reach 1.8 trillion RMB and the scale of users will approach 250 million. According to the surveys, 83.6% of people are willing to continue shopping in unmanned stores, while only 4.8% are unwilling. Among people who have never tried, 66.5% have the intention to use unmanned stores, while only 8.4% are not willing to use them. These results show that the prospects of unmanned retail are broad, and consumers&#; attention and willingness to try are very high, which also means vending machines in China have a good &#;base of public opinion&#;.
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The vending machine is not a new invention and it has been into China for more than 20 years. But why it is becoming popular now?
The data show that the labor cost in China has risen 5 times in the past 10 years. In , the salary of Chinese employees has increased by 8%, ranking first in the world and far higher than the average level of 2.5%. In addition, China&#;s overall rental growth is 7%. The rise in labor and rent costs in China has resulted in a reduction in the profitability of entity stores. This makes the vending machine an important role in the new retail scene.
On the one hand, the vending machine saves on rent and labor costs. On the other hand, the vending machine is able to quickly lay the channels and take the initiative in the development of the current retail industry. It attracts more and more attention from brands. Due to the gradual increase in rent and labor costs, the pain points of offline operators are mainly reflected in the reduction of gross profit caused by the constant price of commodities. Compared to convenience stores, vending machines are more flexible in site selection, which saves labor costs. As a result, vending machines with low labor costs and small footprint have become hot spots. The emergence of new equipment such as self-service juice machines, self-service coffee machines, and fresh food vending machines have made this format unparalleled.
As income level increases, people&#;s demand for instant convenient consumption increases. The consumption environment for vending machine becomes more and more mature in China. Closer to the user&#;s daily life radius, the unique convenience, and immediacy of vending machines cannot be replaced by e-commerce. As the mainstream consumer groups become more young and wealthy, consumers&#; demand for convenience is growing stronger.
According to international experience, when the per capita GDP reaches 10,000 USD, consumer demand for vending machines will usher in an outbreak. At present, there are more than 30 cities in China with a per capita GDP of over 10,000 U.S. dollars, involving nearly 300 million consumers. In addition, according to market statistics, consumers&#; demand for convenience stores is in order of fast, good, many, and cheap. The consumers&#; convenience for daily cyclical consumption has far exceeded the sensitivity to price. Meanwhile, the process of urbanization continues to advance and the population is continuously concentrated. The area of public space suitable for the installation of vending machines, such as office buildings and subway stations, continues to increase.
In the past, vending machines in China was tepid. Poor shopping experience may be one of the reasons hindering its development. Firstly, there were many machine failures. Secondly, even in the case of small settlements such as the purchase of beverages, banknotes are necessary. And the banknotes are usually packed in the pockets of the clothes, which are often wrinkled. Therefore, the banknote jams in vending machines often occurred. Consumers became having no desire to buy beverages through the vending machine. At present, the Chinese vending machines basically implement access to payment platforms such as WeChat and Alipay. Consumers can complete self-service transactions with a few simple steps on mobile devices. In , after Alipay and WeChat entered the vending machine system on a large scale, the revenue of the biggest vending machine operator in China soared from RMB 180 million in the previous year to RMB 650 million.
The intelligence of vending machines mainly refers to the installation of intelligent networking systems and displays on the devices. Connected to the network, operational efficiency of vending machines can be improved, and there is more room for imagination in the business model.
The back-end management system of intelligent vending machines can monitor commodity inventory and operation status in real time. With back-end data, operators can perform replenishment and equipment maintenance more programmatically, and reduce operating costs. Through analysis of sales data, you can optimize the position and commodity structure of the vending machine. The user can also use the APP to inquire about the location and merchandise of the nearby vending machine and buy it directly to achieve online diversion. Coupled with more timely replenishment, stand-alone sales can increase.
The value of smart operating systems for reducing management and operating costs is also growing. In the past, grass-roots operators completely depended on personal experience when picking goods. How many goods are picked up each day, and the out-of-stock situation at each point can only be estimated. Now we developed a back-office management system to accurately determine inventory management and plan distribution routes. Before the distributor goes to the warehouse every day to get the goods, the app will first check the data of the vending machine. The sites with low stock-out rate can temporarily be ignored to consider replenishment on the same day. Only the sites with high stock-out rate are collected, so a bill of lading with the name and quantity of the goods is automatically generated.
In China, vending machines are no longer simply providing vending services but will provide high-end technology and service support in the field of intelligent sales. Through the advanced cloud-service management system, the vending machine in China can help achieve easy management and operation of the mobile terminal. So the smart retail terminal can quickly penetrate. At the same time, it can achieve a win-win situation for the company, franchisees, and consumers.
In other words, before the popularity of mobile payment, offline consumption data is out of touch with consumers. They don&#;t know who the user is, don&#;t know the user&#;s consumer preferences, and it is extremely difficult to operate the users in depth to improve the conversion rate.
With the popularity of mobile payments, offline consumption has changed from getting orders to getting customers. Merchants get user&#;s ID and location information through the offline payments. After the consumer&#;s online and offline consumption records are all connected to form big data, the user image of a single user will be abundant enough. Through big data analysis, the consumption conversion rate under online and offline users can be greatly improved, and the data value in the future will be greatly increased. Data insights have created the core competitiveness of vending machines. Compared with traditional retail, New Retail focuses more on consumer-centric services and experiences.
China is the factory of the world, and it is no coincidence that Alibaba is one of the world&#;s biggest online marketplaces for new equipment. That said, is it a good idea to buy an Alibaba vending machine? If you are contemplating importing vending machines from Asia through Alibaba, you need a sound strategy to ensure you get value for your money. In this post, I will take you through all you need to know about sourcing vending machines through Alibaba.
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Yes, you can buy vending machines on Alibaba. Many reputable manufacturers and wholesalers are selling modern vending machines on the platform. You can find many types of vending machines on Alibaba, including machines to vend snacks, drinks, gumballs, stickers, hair extensions, coffee, water, sanitary products, and ice cream, among other products.
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Buying an Alibaba vending machine may provide the following advantages to a business based in a Western country:
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Note, however, that buying a vending machine on Alibaba will require a bit more due diligence on your part. Consider doing the following when dealing with suppliers.
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Working with only Gold Suppliers and taking the following actions will eliminate most scammers:
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If you are in the United States, you don&#;t need a license to buy from Alibaba. Alibaba is an online marketplace, competing with the likes of eBay, where independent sellers connect with buyers with minimal bureaucratic hindrances. You can import a vending machine from a supplier on Alibaba into the United States without an import license.
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Sourcing a vending machine from a supplier on Alibaba comes with certain risks and disadvantages, including long shipping times, the possibility of damage, shipping fees, and incorrect product information.
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Most of the vending machine suppliers on Alibaba are based in China. Shipping a product by sea from China to the USA typically takes 15 to 35 days, depending on the Chinese and American ports in question and the shipping lane used. If you are in a hurry to launch your vending business, waiting more than two weeks for your machine to arrive may be unideal. If you can wait, however, an Alibaba vending machine is a great option.
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You should account for the cost of shipping when comparing vending machine prices. If the cost of the machine plus the shipping cost is equivalent to the price of a comparable machine available locally, it makes sense to get the machine already in the country.
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When shipping by sea, fees are mainly determined by whether your shipment is Full Container Load (FCL) or Less Than Container Load (LCL). If you buy several vending machines, you can have your own dedicated container and ship by FCL. Otherwise, you will share a container with other customers (LCL). It costs around $1,200 to ship a Full Container Load from Shanghai, China to Los Angeles, USA, and around $2,300 from Shenzhen, China to New York, USA. The cost of shipping an LCL is calculated per cubic meter or ton. It will cost between $15 and $60 to ship one cubic meter from China to the USA by sea, depending on the ports used. A normal-sized snack vending machine will typically be about 1.6 cubic meters.
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Product research can make or break your Alibaba vending machine shopping experience. It helps to have clarity on the type of vending machine you want and all its necessary features before contacting a supplier. While most product descriptions on the platform are correct, there are instances where critical information is missing, incorrect, or misrepresented. Therefore, always get explicit confirmation from the supplier that the vending machine available for shipping matches the provided description. To be sure, ask the vendor to send clear pictures or videos of the machine.
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A vending machine bought through Alibaba will be handled by several people in both China and the USA. The manufacturer/supplier ships it to the port, Chinese port staff load it to the ship, American port and customs staff handle it when it arrives in the USA, and you get to ship it to your warehouse or vending location. Given the many stops, there is an increased risk of damage. Most vending machines are made tough, though, and the probability of them getting significant damage due to shipping and handling is low.
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A good supplier will take measures to reduce the possibility of damage, including:
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You shouldn&#;t worry too much about damage, though. Shipping companies handle equipment more fragile than vending machines, and they routinely arrive safely.
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One of the main downsides of sourcing vending machines from China is that the brand may lack ready spare parts in the United States. When you can&#;t get spare parts quickly, your vending machine will sit idle for days while waiting for parts to arrive. You can mitigate this problem by getting a simple vending machine whose parts can be replaced with generic aftermarket parts.
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As you cannot inspect the machines physically, you can&#;t ascertain the build quality of the specific vending machine you are buying. You can reduce the chances of importing a lemon by working only with suppliers/manufacturers with many good reviews. Avoid suppliers who haven&#;t built a solid reputation on Alibaba.
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Most manufacturers in China targeting Western customers have staff who have adequate proficiency in English. You may, however, find yourself dealing with a company where this is not the case. Language barriers can distort communication, cause frustration, and even mess up your order.
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While Alibaba has business-to-customer (B2C) offerings, it mainly serves as a B2B company. Businesses looking to buy products in bulk will find Alibaba more useful than AliExpress. AliExpress is designed to serve the B2C segment.
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That said, for vending machines, you will be better served on Alibaba than AliExpress for both bulk and single purchases. Alibaba has a bigger selection of all kinds of vending machines, including those for snacks, drinks, combos, gumballs, stickers, and custom items. Most vending machine suppliers on Alibaba do not have a minimum order requirement and will gladly ship even one vending machine to you.
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The decision to buy an Alibaba vending machine depends on your business needs and your assessment of the costs and benefits accruing from the decision. As far as safety is concerned, it is unlikely that you will get scammed if you source the vending machine from a well-reviewed Gold Supplier. Consider the following factors when evaluating whether to buy a vending machine locally or source one from Alibaba:
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Ultimately, the decision to buy an Alibaba vending machine is about the expected rewards and savings. You should be able to independently do a cost-benefit analysis based on your specific circumstances to determine if the decision is worth it.
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