Core Insights - The drop shipping business model is facing structural changes, with major e-commerce platforms benefiting, while Xianyu has its own concerns [1] - Xianyu's growth is not yet at its peak, requiring more personal sources to expand its platform scale [1][9] - The unique user mindset of Xianyu may hinder the drop shipping model's sustainability if it dominates the platform [1][19] Group 1: E-commerce Platform Dynamics - 1688's active buyer count is projected to exceed 100 million by February 2025, marking a historical high, with a 55% year-on-year increase in 2024 [2] - The drop shipping model on 1688 has seen a 75% year-on-year increase in active buyers [2] - Pinduoduo reported a revenue of 95.7 billion yuan in Q1 2025, a 10.21% year-on-year growth, but its operating profit dropped by 38% [5] Group 2: Regulatory Changes and Compliance - Recent adjustments to the "refund only" policy across multiple platforms have closed loopholes that allowed users to exploit the drop shipping model [8][7] - Xianyu's user base surpassed 600 million by November 2024, with a daily GMV exceeding 1 billion yuan [9] - Xianyu has implemented a basic software service fee of 0.6% for sellers, indicating a shift towards a more compliant platform [12] Group 3: User Experience and Market Perception - The perception of second-hand goods on Xianyu is unique, as buyers prioritize the quality and legitimacy of items, which may be compromised by drop shipping [15][16] - Instances of "pseudo-second-hand" goods can damage user trust, as buyers may receive items that lack authenticity [15][19] - The need for a robust feedback mechanism is essential for addressing transaction disputes and enhancing user experience on C2C platforms like Xianyu [20][21]