Analysis of the beginnings of the Internet in electronic commerce

The beginning of an analysis of the internet in China and the United States should be e-commerce. Because of the prosperity of E-commerce, led http://www.aliyun.com/zixun/aggregation/7714.html "> online advertising boom, thus nourishing a variety of content services for small Web sites springing up like the birth." The United States a series of Web 2.0 model of the emergence and survival of the root of 2:1 for the river closure, is the user contribution to reduce costs, the second is open source, is Google AdSense network network advertising revenue. The 1th in China is a successful replication (especially when the content of the user contribution becomes a copy of what the user contributes), while the second element does not exist.

In China, E-commerce has never really started on a large scale, online advertising of course, the total market capacity is not enough, and the only ads, but also because the flow of money is not valuable and serious to the flow of large sites. Small site's survival space is severely compressed, relying on time and again "straw industry" help (such as crazy burning money during the advertising Alliance, or SMS MMS and so on big ups and downs of the project).

Now the model, more is the internet spend the big head, crazy to put online advertising, these ads are divided into the portal, and then after the alliance layer after the disc buckle, into the small web site pocket. When the suckers do not vote for money, the new round of Internet small Web site in the fall. and E-commerce as the source of the Internet profit model, can nurture a large number of small sites, and from the bottom up to promote the growth of the Internet tree. No mature e-commerce as the root of the Internet profit, whether the Web 1.0 or 2.0 are struggling, beauty star-crossed.

Why must be E-commerce

Why must be E-commerce? Why can't traditional business be such a source?

If we simply divide the world into online world and offline world, we will find four different combinations: use online advertising to promote online products, services, under the line promotion line, or online push line, and line down push line.

Use offline advertising to promote the site

Use offline advertising, to promote the site, most of them are broken. We've seen too many newspaper groups, do a website, all the newspaper resources used to do the promotion of the website, with genuine advertising to smash the market, thought that the most effective way to promote the use of the Web site, the confidence is full of people all over the city to see the newspaper if push which site, that site must fire. As a result, the site's statistics show that there is little difference between advertising and advertising in newspapers. In any case, even if 1 million of the circulation (such a circulation of newspapers is rare), even a full-page ad, noticing the ad (see and think about it), will not exceed 10%. In the middle, will be on the internet when knocking on the Web site, but also 10% of them (10% is actually more said) , which brings up to 10,000 users a day. If the online advertising, even if 3 cents a click (not low), but also a value of 3,000 yuan advertising effect. Use can sell tens of thousands of to a hundred thousand of of the entire version of advertising, in exchange for 3,000 dollars worth, it is better to sell the whole version of advertising, earn money to cast online advertising.

Online Promotion Line Business

Similarly, the online way to promote offline business, is not necessarily how much advantage. Even if you spend 30,000 dollars to buy 100,000 of the traffic, they see your ads, to your store (or online under the use of your service), how many? See offline Advertising online, but only a few times keyboard operation, still because can not act immediately and the effect of a discount, not to mention that the online ads to the offline use of services may be a few hours drive away. A poster at the door, the cost of production is no more than hundreds of yuan, the user will not be more than to cast an online ads too much less.

Two Worlds

Online is the world, people are the internet world. Offline is offline the world, people are real people. Get through the two worlds. Either E-commerce, move offline transactions to the online, or local communities, connect the world online. This article does not say the local community, first said E-commerce.

We have just said that under the line of business, if there is any form of shop or service or move to the Internet, the transaction, or a small part of the transaction to the network, this is E-commerce. It can be complex to order online, online payment, cod, can also be simple to a printable discount coupons, a message version, or even a place to order e-mail or phone, can be said to be some form of e-commerce. As long as the user visits this page, can perform specific and specific transaction-related (regardless of how weak dependencies), you can track the effect of this site, online traffic can be linked to the core of business. If you can prove that online advertising brings even 10 dollars in extra profits, advertisers have the reason to spend 5 dollars or even 9 dollars for online advertising. If there is no e-commerce, online advertising is still stuck in the traditional advertisers to try or to include VC or internet giant ads such an unstable mode, did not touch mainstream business.

After all, the line to promote pure offline business, and offline promotion of pure online business as inefficient.

The electronic commerce is big again, now also is only the hundred billion market; and offline commerce, its market measure is the country's GDP. I expect more offline businesses to move online, only so that the Internet really cuts into mainstream business, from eating crumbs to chewing up cream cakes.

Note: The idea that he elaborated in the first conversation with Richard, I personally feel very reasonable, took it.

Note II: What is electronic commerce? The Amazon model, of course, is to sell its own stores, of course, including ebay's listing fee, which is the platform services it offers to sell on the Internet, online consulting, online subscriptions (although the final service is provided online). In short, not only commodity trading, service transactions are also counted, not only to complete the transaction, in this transaction link in any one or several links are counted. It's all about the volume of transactions that can be tracked.

(Starting 2007-4-13)