e-commerce platform allows many people to make money at home without going out. The rise of Taobao has caused a great sensation in China and changed people's way of life. Alibaba has thus become the largest Internet company in China. With the rapid development of the e-commerce industry in recent years, many emerging e-commerce platforms have also developed rapidly. The highly competitive e-commerce industry has led many merchants to quit Taobao and seek other ways of making a living.
Many companies can't make money and their business is difficult because of the following reasons, either because of fierce competition, and second, because of high costs and low profits. In addition, Alibaba does not pay enough attention, and the threshold is getting higher and higher. The e-commerce industry has left the quality of many products unable to keep up. Topic discussion: E-commerce is "not fragrant", why do a large number of merchants withdraw from Taobao? The reason behind it has been confirmed!
When the e-commerce platform emerged, Alibaba seized this opportunity and developed rapidly. Taobao can make many people become rich overnight, and it can also make poor villages into Taobao villages. Taobao can lead everyone to get rich easily, and everyone can make money easily at home without going out. After Jack Ma once issued the call of "making the world easy to do business", many merchants poured into Taobao to open stores, and Alibaba's business is getting better and better. The annual turnover and net profit of Taobao and Tmall are both It is growing rapidly, and every year, with impressive results.
Alibaba, as China's largest Internet company and one of the world's top ten companies by market value, is inseparable from Jack Ma's efforts. Is it really that easy to do business with more than eight million merchants on Taobao? Actually the answer is no.
At the beginning, the cost of physical stores was high, including rent and labor, and business development was difficult.After the rise of Taobao, many people turned to e-commerce, thinking that the cost of e-commerce would not be so higher than that of physical stores. But in fact, it is not as simple as people think. The cost of e-commerce is not lower than the cost of physical stores. In addition, the competition in the industry is now very fierce, which has caused many merchants to withdraw from Taobao.
The e-commerce industry is developing more and more rapidly, and many emerging e-commerce platforms are also developing rapidly. The two companies Alibaba and JD.com are developing very well, coupled with the rising platforms such as Pinduoduo and Vipshop. In any case, doing business on an e-commerce platform should be better than doing business in a brick-and-mortar store, but there are still many companies that say they can't make money and it's more difficult to do business. So what is the reason?
First of all, with the rise of e-commerce platforms, more and more people have joined the e-commerce platforms, which has attracted fierce competition. Taobao has more than 8 million sellers, and each product has many competitors. The best seller is the best seller. For small and medium-sized sellers, they are not as good as big sellers in terms of product quality and circulation resources. If small and medium-sized sellers want to compete with big sellers in these areas, the cost will increase, which will reduce the possibility of making money. Unless small and medium-sized sellers take some differentiated measures, there is no way to achieve the purpose of making money. In addition, since Taobao's traffic is indeed large enough, some merchants can attract traffic and customers by dividing their products into different categories, which can reduce competition.
followed by high cost and low profit. The highest cost of Taobao is not rent nor labor and goods, but traffic. As for Taobao online stores, you only need to pay some deposits to open a store. This cost is not high, but this happened ten years ago.If you don’t promote and attract customers, you will not be able to attract traffic. Without traffic, you will naturally lose customers and lose the market. If the product needs to be promoted, it must increase the cost. If you want to promote it, you must first spend money on advertisements and live broadcasts. It takes a lot of investment in advertising, and some celebrities and internet celebrities have to be paid to bring goods on live broadcasts, which will increase the exposure of the product and increase the sales volume accordingly. Some companies and companies are unwilling to spend money to promote and promote their products, and they are not willing to spend money to promote and promote their products. Naturally, they will not last long and will eventually choose to withdraw from this competitive industry.
Finally, it is Alibaba's own problem. Alibaba does not pay enough attention to Taobao. Alibaba has been advertising and attracting traffic for Tmall, so those Taobao sellers will not be able to compete with Tmall in terms of advertising and traffic. In addition, Tmall's popularity has always been high, and Taobao is now in a downturn , Taobao's internal status in Alibaba has dropped a lot, and Taobao sellers have lost more traffic and market under Alibaba's lack of attention, which is very unfavorable. In the case of too many
sellers, Alibaba will choose the top sellers that support each product category, and only in this way can we have the most profit. The competition between large enterprises is also becoming more and more intense, while small and medium-sized sellers cannot seize any traffic and have no advantage in the market. Therefore, these small and medium-sized sellers will become more and more difficult to do on Taobao. With the rise of Taobao, the scale of Taobao, which was started by small and medium-sized sellers, has become larger and larger. Alibaba has more support for larger brands. Coupled with the swarming of big brands, Taobao has now been abandoned. small and medium-sized sellers.
Alibaba's rectification efforts are also getting bigger and bigger, which is not good news for small and medium-sized sellers. Taobao's actions in cracking down on counterfeit and shoddy goods and cracking down on bill exchange have been strongly supported. But for small and medium-sized sellers, they still have swiping orders and other ways to make their products have more exposure and increase sales. In order to reach a real transaction, the seller will also find someone to swipe the bill and send small gifts, the cost will naturally increase, and the investment will naturally be larger, but this is not good, and the Taobao market has a bad atmosphere. E-commerce is no longer a new industry, and the threshold is getting higher and higher. The more mature the development of each industry, the more intense the competition in the industry, and the threshold will naturally increase a lot.
Whether it is an online platform or a physical store, the quality of the product is the first choice for consumers. Without quality, there is no way to gain a foothold in the market. Focusing on how to increase sales and how to improve your competitive advantage is not as good as thinking about how to improve your quality. Only when the quality is improved, consumers will be willing to pay for it, and sales will naturally follow. Enterprises need to pay more attention to the development of their own business, and use more products to speak at the same time they need to use good product quality to hand over the market answer sheet .
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