business model, business model canvas, columbia, customer development, lean launchpad, lean startup, steve blank

1. Jing Li, Weber Xu, Long Chen, Liwei Gao
E-storage
“Providing Chinses SMEs with World-class Logistics Services”
Customer Discovery
Interviews in last 24 hours: 12
Total interviews to date: 67
# Manufactures: 34
# International Trade Companies: 15
# US Importers: 6
# Partners: 12

2. Business Model
Business Model Canvas
Plan Forward
3
1
2
Introduction for E-storage
What will We Do Next.
What We Learnt…
Agenda

3. Chinese SMEs
Chinese SMEs US Consumers
US Consumers
International
Trade
Company
Retailers
Wholes
alers
Port
US
Importer
Chinese SMEs Middle Channels US Consumers
Traditional International Trade Process

4. 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

5. The Project E-storage: Business Model Canvas
• Warehouse
Company
• USPS/Fedex/UPS
• Freight company
• Software
Developer
• Trade shows
• Website
• Export association
Order handling, Warehouse storage
Warehouse, 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)

6. Value Proposition
Chinese SMEs
Chinese SMEs US Consumers
US Consumers
International
Trade
Company
Retailers
Whole
salers
Port
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

7. 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

8. 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

9. Customer Segments: What they need (Day 5)
Interests in US market
Online Sales channels in US market
x

10. 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

11. Chinese SMEs interested in the US
market.
Sales Representatives
E-STORAGE
Chinese SMEs
Export
Asso.
Webs
Trade
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”

12. Inventory Information
Sales Process
Payment
Product Delivery
Revenue Model
Order handling FreightWarehouse
US
consumers
Webs
US
Storage
Online
Platform
E-Storage
Chinese
SMEs

13. Revenue Model
E-Storage
Chinese
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

14. 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

15. • 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 Network
Get- 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)

16. 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