5 yuan freight to overwhelm Dangdang?

5 yuan freight to overwhelm Dangdang?

The Heart of Rock

Today, on Dangdang bought a book, after the order was told to pay 5 yuan freight. When I browser other shopping sites found that Taobao Electrical city stationed in one of the conditions is free shipping, http://www.aliyun.com/zixun/aggregation/7839.html "> Excellence Amazon also hangs in the home page Free Shipping Banner , and Jingdong Mall is free shipping, almost all will be "free shipping" as an unwritten rule.

And Dangdang from the first advocate "free shipping", to the first stop "the whole field free shipping", is 5 yuan freight to overwhelm when?

First, the money is hard to bear the cost of free shipping costs increase?

Remember that in the September 2009, the excellent Amazon to take a free shipping strategy, Dangdang blamed for unfair competition, and with the two largest users of the website are free shipping mode, "Free shipping" has become a long-term strategy for the company, but also popular with netizens.

However, free shipping is the test of the financial strength and operational capabilities of the website. A book of 10 Yuan, if free shipping way Express, this is basically a loss for the website of the Business-to-consumer. Because the book profit is about 15%, if set free shipping amount on line, can ensure that netizens buy a few books to gather enough quantity, thus make up the cost of freight, not lose money.

The consumer website relies on free shipping to obtain more turnover, through the diversification of goods, users in the purchase of other 3C products, cosmetics, clothing and other department stores, the client website can obtain higher profits, so as to make up for the book Free shipping costs. But when the current income of more than 80% is still a book, it will not be able to implement the long-term free shipping, because the result is tantamount to "suicide."

Repeat 5 yuan freight, which means that in the competition for free shipping on the Web site, Dangdang surrender surrendered. Backed by the United States Amazon, early transformation of diversified commodity excellence and reliance on 3C product sales profit of the Jingdong, new eggs are still enjoying the full free shipping of the huge flow and sales revenue.

Second, miss the diversification of the transformation of commodities opportunities, betting on the profit of books is worrying?

In terms of revenue, according to Guoqing Introduction, 2009 when the book sales will reach 2.4 billion yuan, within three years the company's total turnover will reach 10 billion yuan. But when the sales of other goods have not been disclosed, the proportion of other merchandise sales to total sales is only 15%.

Beijing has achieved 4 billion of sales compared to Dangdang, and Taobao is over billions. This is mainly because the goods of these enterprises are not limited to books, after all, the price of books is lower. And Dangdang's biggest rival Amazon has achieved the audio and video book products and department stores equal, when if not effectively improve the 3C and other general merchandise sales, then break 10 billion will become very difficult.

At present, there is no business enterprise can say that they have achieved profitability, including Jingdong, VANCL, excellent Amazon, claiming that the profit may only be a dangdang, all day shouting to be listed only when one. However, it is undeniable that Dangdang's commodity structure is the most risky, but also testing its long-term competitiveness.

Third, when with excellence who has the opportunity to participate in the final battle?

Dangdang and excellence are the first two companies to start the Web, the latter include Jingdong, VANCL and other vertical enterprises, as well as Taobao Electric City, Pat 3C City, such as alternative business enterprise (called Alternative, because Taobao and Pat not involved in the procurement of goods, but for large businesses to build a platform, and then charge a portion of the cost).

So when and when Amazon faces a tiger before the wolves, a more intense competition for the consumer is about to be staged, and only through services that are more likely to be made available to consumers can they participate in the fight.