products? Unlike the certainty
Posted: Mon Dec 23, 2024 10:46 am
Although the comprehensive low-price strategy seems to reduce the profits of merchants from a logical point of view, it may not be entirely true in fact. The reason why merchants are willing to provide low-priced goods to retail enterprises and e-commerce platforms is that on the one hand, they can digest inventory faster through the self-operated model and the platform's traffic incentives to enhance cash flow for new product development; on the other hand, the advertising costs of merchants on the platform are reduced, which still increases profits invisibly. Finally, low prices also help merchants to quickly occupy the market and strive for a larger market share to a certain extent.
Even eliminate competitors with insufficient japan mobile number code efficiency and low cost performance to promote the transformation and upgrading of the industry. Whether it is a price war for home appliances, a price war for mobile phones or the current price war for electric vehicles, it will not ultimately lead to the death of all merchants or the disappearance of the industry. Instead, it will enhance the competitiveness of the industry and accelerate the transformation and upgrading of the industry. Of course, it is still necessary to strictly supervise vicious price competition. In addition, due to the limited area and shelf brands and the limited number of goods, retail enterprises are more likely to provide limited, low-priced well-known brand goods and co-branded or customized goods based on the target population within a few kilometers; while non-well-known brands and white-label goods are mostly replaced by private label goods.
E-commerce platforms have no area and shelf restrictions and can, in principle, enrich non-well-known brands and white-label goods infinitely. However, for merchants, the cost of putting goods on the shelves has already been spent. If the sales efficiency is not high (not selling fast enough or not enough), over time, merchants will lose confidence in the platform and will not only be unwilling to set low prices for sale, but will even remove goods from the shelves and leave the platform. A thought I often mention is: if low-price competition makes merchants unprofitable for a long time, and merchants withdraw from low-price competition after a few years, will they not be able to buy any goods on the e-commerce platform? Therefore, the retention of merchants is the key to the comprehensive and long-term low-price competition of e-commerce platforms.
Even eliminate competitors with insufficient japan mobile number code efficiency and low cost performance to promote the transformation and upgrading of the industry. Whether it is a price war for home appliances, a price war for mobile phones or the current price war for electric vehicles, it will not ultimately lead to the death of all merchants or the disappearance of the industry. Instead, it will enhance the competitiveness of the industry and accelerate the transformation and upgrading of the industry. Of course, it is still necessary to strictly supervise vicious price competition. In addition, due to the limited area and shelf brands and the limited number of goods, retail enterprises are more likely to provide limited, low-priced well-known brand goods and co-branded or customized goods based on the target population within a few kilometers; while non-well-known brands and white-label goods are mostly replaced by private label goods.
E-commerce platforms have no area and shelf restrictions and can, in principle, enrich non-well-known brands and white-label goods infinitely. However, for merchants, the cost of putting goods on the shelves has already been spent. If the sales efficiency is not high (not selling fast enough or not enough), over time, merchants will lose confidence in the platform and will not only be unwilling to set low prices for sale, but will even remove goods from the shelves and leave the platform. A thought I often mention is: if low-price competition makes merchants unprofitable for a long time, and merchants withdraw from low-price competition after a few years, will they not be able to buy any goods on the e-commerce platform? Therefore, the retention of merchants is the key to the comprehensive and long-term low-price competition of e-commerce platforms.