Why do many traditional enterprises lose money doing e-commerce?

The crisis faced by traditional enterprises is first of all the supply chain problem. Some consumers complain that online shopping malls often hang some ultra-low-priced goods, but they can't cash them. Secondly, like physical retailers, online supermarkets also have logistics problems. Except for a few shops such as 1 store and JD.COM Mall, most online shopping enterprises operate in the mode of third-party logistics, which can easily lead to the damage of goods during transportation and the high cost. The third problem is the capital chain, and it is difficult to balance investment and return. Traditional retailers have a stable market, but the performance of online supermarkets will be high and low, but the initial investment is very large. A decent online supermarket should invest at least tens of millions to 654.38 billion yuan. However, due to the low price of online shopping, there is not much room for profit.

There are still many traditional enterprises that pay more attention to the growth of short-term online sales and ignore the user experience, which makes the repeat purchase rate very low, and they have to pay high marketing costs to acquire new customers and fall into a vicious circle.

For more detailed reasons, you can go to Baidu to search for the keyword # e-commerce intelligence #.