The distribution of wealth is unbalanced and the six major weaknesses are exposed

Source: Internet
Author: User
Keywords E-commerce online shopping Taobao sellers play changed
Tags .mall analysis business cost data development distribution economy

Taobao sales, has been more and more concentrated, which has two layers of meaning: one is more and more to the big sellers focus; second, sales are increasingly focused on the explosion.

Wealth is rapidly gathering to big sellers

Taobao internal often have data analysis of the mail, which often refers to a concept, called "Gini coefficient." This is a measure of the fairness of individual income distribution in an economy. This is calculated with a very complex algorithm, the higher the Gini coefficient, the greater the gap between the rich and the poor, conversely, the smaller. At present, Taobao's Gini coefficient has exceeded the internationally accepted average of more than twice times. The academic view is that this number exceeds a certain level and the system tends to be unstable. Taobao has actually been out of the standard for a long time.

Data I am not convenient to open, but I can use a very intuitive version of the analogy, is currently ranked top 5% of the big sellers, sales in the entire Taobao accounted for, if the year before the 15%, this is 30%.

What does that mean? That is, Taobao's big sellers grow far more quickly than Taobao platform itself, wealth in their top sellers gathered.

Of course, another layer of meaning is that small and medium sellers development rate is far below the average speed.

That's something a lot of people will see. We will focus on the phenomenon of "sales to the explosion money concentration".

Six major problems caused by the phenomenon of exploding money

The so-called "explosion", is the sale of a very good single product, a single product sales more than 1000, the basic can become a "blow money". Now Taobao casually point to a category, according to sales order, sales of more than 10,000 pieces of single goods everywhere.

This has not happened in previous years. Taobao began to appear in early 2010 "burst money" trend.

So, why is there a bomb?

From the buyer's point of view, a lot of people have bought a certain item, it should be explained that this thing is more trusted, more reliable, so it will be easier to follow the list. That's a good idea.

From the seller's point of view, the seller hopes that the store has a very popular product, or "star products", through the sales of this star products, to stimulate the sale of other products in the store. This is well understood.

But is that the main reason? The above two reasons are set up at any time and cannot explain the fact that "the two years have come".

Let's look at how sellers build their money.

First, the seller will find a store in their own characteristics, cost-effective products, set an attractive price, of course, this price means lower profit margins. Then will find ways to participate in Taobao activities, in various activities are pushed this product, anyway, it's sales to do high. Smart sellers will classify the products in their stores, such as the following, to determine their product composition and profit contribution.

Sellers do not necessarily have their own product line to do a strict positioning, but will find ways to "blow the money", and now the easiest way to burst the money, is to participate in "poly cost-effective."

Poly cost-effective originally belong to Amoy Lake in the group buying business, do very serious also very good, now became the only to do successful business. Poly cost now every day, nearly tens of millions of users to browse, the Internet is the hottest place.

Take part in the gathering cost, it is likely in a few minutes time to sell thousands of or even tens of thousands of pieces, this is not the bomb we want. And the cost of its own product screening and audit is not so transparent, and can not be transparent, because there are too many sellers to participate. Therefore, according to the Grapevine, the seller to participate in a poly-value to pay tens of thousands of, I have not seen, also not easy to say. But I know that if resources are so valuable and resource management is concentrated, it is normal to have problems or to be guessed.

Why is the seller in the end to the cost of clustering? Certainly not in order to profit, low profit single goods sales earn a few money, but in order to blow up! A seller's words bare: With the explosion, I can be in front of the line.

Originally, Taobao modified the default collation, "popularity" has a great weight, as far as I know, sorting is an extremely complex algorithm, with dozens of parameters. But the main effect of the "popularity" is "sales", that is, whether it is an explosion.

With the explosion, I can line up in front, my store traffic can be improved. This is so good!

A good deal of hot to Taobao and sellers have brought a lot of value, I do not have the praise here.

Let's take a look at some of the negative results brought about by the Poly.

(1) Collation of the rules of the kidnapping

I believe that Taobao search results algorithm, is to "fair" to each seller the same opportunity, otherwise, will not be in the new algorithm when the big sellers parade.

Many of the parameters of the algorithm, in order to allow the seller in all aspects of balanced development, so that buyers see all aspects are still good sellers.

But, because the explosion is found to be the simplest and direct way to improve the ranking, so the new collation is in fact kidnapped, the formation of the more serious Matthew effect (refers to the better, the worse the bad, the more the more the less the less the phenomenon).

(2) through-train advertising business seriously damaged

From the beginning of 2010, I began to hear the sellers, TP service company friends told me that the current p4p (through train) advertising effect is not good, even said that the investment in the through train, it would be better to find a way to get together.

Sellers do not care which business is damaged Taobao, but only care how to line up in front. But I want you to look at the nature of the through-train ad.

Through the search keyword purchase, so that their products appear in the user's active search product list More prominent position, this hedge will certainly not help, but it can achieve our products are needed to see, and a variety of products are seen in a very balanced probability.

By comparison, a through train is healthier than a good deal for a store, which is like drinking hot tea and drinking coke to cool the heat, a slow but permanent cure, a quick but only palliative.

(3) Disrupted the balanced development of the sellers environment

Since all shops can be recommended on a single product, the opportunity for a balanced development of sellers is undermined. Those who have money, and Taobao small two relationship good sellers, naturally occupy the promotion bit. To know, Taobao page of a recommendation, the seller means money.

And the fair-looking "as long as the good has the opportunity" rule, actually brings to a large number of sellers is "unreachable" and "unfathomable." I've met a lot of sellers who want to help out through the backdoor and I can't help them. I think Ah, this is in Taobao to know people, do not know how to do?

Not on a good deal, there is no explosion, no explosion, there is no flow, the reality is so cruel.

(4) actually did not cause Taobao growth

Poly cost since the establishment in 2010, it is said that there can be a very high turnover per day, I asked: this should be the growth point of Taobao turnover. In fact, Taobao's market, between 2010 and 2011, Growth is very limited, or even a small fraction of the cost of growth.

So where did the cost of the gathering come from? The answer is only one, is from the market "button out", and is not a point of growth.

(5) raised a group of problem buyers

One of my very familiar clothing sellers told me that I had participated in 2 times, sold more than 10,000 orders, 2 months later, the 10,000 buyers, produced a repeat purchase less than thousand 5, her shop average repeat purchase rate is this dozens of times times. And she participates in the cost-effective products, quality is no problem. At the same time, even if these buyers use the usual 50 percent of the price to buy, but also produced a normal 8 times times the complaint.

There are more than one or two sellers of this kind of problem. When I was in the Word-of-mouth network, and the cost of a close business cooperation, and then after analysis found that in the poly-cost buyers, the proportion of repeated purchase of the cost is quite high, this also confirms my guess at that time.

In layman's terms, there are a group of buyers who buy only a good deal. This group of people and ordinary Taobao buyers are significantly different, they are more cheap, more believe that cheap have good goods. So some people say that Taobao buyers are divided into three categories: the people who go shopping, the people who buy and so on.

(6) Shop profit constitutes unhealthy

The main sales volume from the shop is "explosion", but the main profit can not be generated by the explosion, because the profits of the explosion is very low, and the seller to build the purpose of the explosion is "with flow", rather than to fight for profits, so, the main task of profit, fall in the so-called "related sales" on. That is to say, a good deal would suggest that the merchant should lead the customer to buy other things in the description of the product, and strive for more sales. At the same time, the high-end products, or high profit margins of the products, can not be due to the sale of the sales of more effective conversion, and therefore can not play a significant source of profit contribution.

In the traditional business, this is an unhealthy type.

But none of this is a hindrance to the development of a very fast-growing economy.

Many sellers believe that they have been the cost of "rape"-

This article selected from the "play changed--Taobao sellers win weak brand Time" book

"Play changed--Taobao sellers win weak brand Time" a book has been published by the electronic industry publishing house

Fat Fei

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.