What's at the heart of e-commerce

The core of e-commerce is the supply chain. The essence of e-commerce, is to solve the sale of goods. The profit earned, is the difference in price of goods. The core driving force of the buying and selling model is the average consumer, who wants to buy the most suitable goods anytime, anywhere, at the lowest price. In two companies that do the same retailing, how to provide good quality goods at low prices for a long time. The conclusion is supply chain costs. I.e., the number of times goods are moved, as Dong said. The moat of the e-commerce model for long-term competition is the supply chain. So let's look at two old stories about Jingdong and Suning: Jingdong Group is positioned as a technology and service company based on the supply chain. Suning. For the future development of the company, Sun Weimin said: "We are still doing retail, the rules and regulations to understand the goods, understand the customer, and no longer think about other things. The core is to return to our strengths, commodity supply chain, local services. In addition, it is with this advantage, and then with the ability accumulated in the decade of Internet transformation, the development of local online interconnection, local Internet operations. Recall that ten years ago, e-commerce had experienced Vancl, Tencent e-commerce. Is the flow important. Short-term important, but the flow came in, the user bought, found that the goods are not as good as the board / quality is not as good as the other, bad reviews, loss. In contrast, the current, live e-commerce, community e-commerce, content e-commerce, cloud set e-commerce, why did not continue to accumulate competitiveness. Because there is no ability to supply goods of good quality and low price for a long time. Short-term subsidies can guide the user, but "there is no brand power that can not be crushed by 1 dollar". So is it possible to push back: there is no supply chain advantage of e-commerce, will become a short-term phenomenal product.