The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall
in the golden Age of the network economy, young e-commerce entrepreneurs holding a large amount of venture capital, to write the new economic entrepreneurial fantasia. Amazon's "strong first, then profitable" business philosophy has been begotten by countless entrepreneurs to enter the new economy. Under the guidance of this idea, in order to win customers, the site spent a huge amount of money in the television broadcast ads, sponsorship of large concerts, at any price to discount, and sometimes even incredibly 40%~50% the price of goods sold. They believe that once they win the new economic enclosure, they will be able to sit in a much richer profit.
These costly marketing activities in a very short period of time for the online store to create a dazzling image, people praise the magic of the new economy, admiration for young entrepreneurs business talent. But behind a thriving boom is a huge loss. The way to develop E-commerce is almost a game of burning money, the more fierce the competition between websites, the faster the speed of burning money.
venture capitalists are not technology fanatics, not idealists, and the pursuit of return on investment is their fundamental goal. Soon they are waking up from the wonderful stories of new-economy entrepreneurs, who have lost patience with the continued loss of E-commerce sites, and many investors have withdrawn or no longer invested in new funds, making it difficult for a large number of E-commerce sites built on venture capital. Profitability has become a top priority for the survival of the Web site in front of entrepreneurs.
Reduce operating costs
Many people believe that running an online store is cheaper than running a physical store because of the need to pay high store rents and hire a large number of people, saving about 20% of the cost. But at the same time, an online retailer has to bear much higher distribution costs and marketing costs than physical stores. To improve distribution efficiency and ensure quality of service, Amazon has built 8 large, expensive distribution centers in the United States and 151 distribution centers overseas, and the cost of building and operating these distribution centres is by no means small. On the marketing side, online stores pay a higher price. After all, online shopping is a new way of shopping, in order to attract customers to their own site shopping, online stores than traditional stores to do more promotional activities. In fact, the cost of getting customers has become the main cost of e-commerce sites. IDG's survey showed that many new e-commerce sites in the United States to obtain an online shopping customer cost of 80 U.S. dollars, and most e-commerce sites, only about 5% of the gross margin, which means that a customer to buy 1600 dollars of goods to flat marketing costs, It will take more than 3-4 years to recover the cost of the customer.
E-commerce is essentially business. From an economic accounting point of view, carrying such a high operating costs, online stores to achieve the balance point of winning must go through a long time. In the case of increasing profit pressure from investors, tightening spending and controlling costs are the only way for e-commerce websites to get out of the shadow of death. Nowadays, scraping the tide of the job-cutting of e-commerce websites is a solemn and stirring action when they deal with the survival crisis. At the same time, the E-commerce site also generally in the internal implementation of strict expenditure reporting system, from office, travel, public relations and other small places to practise austerity, a change in the past that luxury style, trying to reduce the daily operating costs of the site to create more profits.
learn from traditional industries
In the face of high advertising spending, some websites have turned to cheaper but more effective advertising schemes. Alloy, a U.S. website that provides services for young people under 20, chooses to mail catalogues to 500 teenagers a month instead of spending 5 million dollars on links to websites such as AOL and Yahoo. This is a cliché in today's online era, but it's a good result because it's very targeted, sending alloy's name directly to the home of the target client, the teen. Spend a huge amount of money in TV, portal advertising, although in a short period of time to create a high visibility, but the availability of effective online shopping customers look, this is not the most cost-effective choice. Instead of spreading the money aimlessly, it is better to focus on the most promising potential clients, and to strengthen the propaganda campaign against these people, simply put, "the money needs to be spent on the edge."
New economic enterprises most highly admired the ability to learn. Nonther, e-commerce in the study of new ideas, technology, but also should be to the traditional business enterprises? In fact, there are a lot of valuable lessons to be learned from the traditional retail businesses that the online stores are bent on beating. With the success of Wal-Mart, the world's number one retailer, from a small store to more than 4,000 chain stores in 9 countries, we can appreciate the importance of cost control in retailing competition. Since Walton founded the first Wal-Mart store in 1962, Wal-Mart has been pursuing high efficiency and low cost business philosophy, and insists on compressing expenditure in management, logistics, service and other aspects. The headquarters of Wal-Mart is very simple, the lounge is like a long-distance transportation company on the road for drivers to set the room. Wal-Mart executives often get together in a room to save on travel expenses. Through a series of expenditure measures, Wal-Mart has managed to control its operating costs within 2% of its sales, well below the 5% per cent of its competitors. Therefore, it can play "every day Parity" banner, let consumers, won a broad market. In fiscal 1999, Wal-Mart sold 165 billion of dollars to 100 million customers, with a profit of close to $5.4 billion, and the top 15 in the global corporate profit rankings.
to survive will be profitable
Network economy is the representative of advanced productivity, E-commerce is the future of the wealth of the source, but this does not mean that a company to participate in E-commerce can make a fortune. Young entrepreneurs, holding the risk fund and the money from the IPO, mistakenly believe that this is the profit of their fashionable business model, but they are far from real profits. A business does not go through time and again to temper and sharpen, only a plan, a technology can be rapid development of the Arabian Nights. This is not possible in the traditional economic era, and is not possible in the new economy. A company with a technology breakthrough may be in a certain period of time in the market, but today's market competition is so fierce, technological progress is so rapid, at any time there is the possibility of being eliminated. Therefore, the E-commerce site must be prepared to fight the protracted war, and strive to develop their ability to resist future risks. One of the most critical is to establish a sustainable strategy for the use of funds, expenditure, and strive to make every money spent to receive the necessary results for the next step of development to provide a reliable guarantee.
facts have proved that the idea of "grow first, then profit" is wrong. It is based on the illusion that investors will be generous in throwing money, and the real character of investors has been clearly demonstrated in the Nasdaq stock market shock. Whether traditional enterprises or e-commerce sites, they can not profit, survival is a problem, talk about how to grow? To survive will be profitable, to profit in the final analysis depends on the solid management and management capabilities, by the Hard.
