The way of "thin profits and more sales" in the e-commerce industry still work?

"Thin margins" is the most commonly used in the Chinese tradition of a promotional strategy, but the word used in the field of e-commerce is not as good as it is, many times, we have repeatedly, again and again, squeezing their own profits, but bring the sales did not have objective growth, and even many e-commerce enterprises is because of a time to squeeze profits The result is a failure.

Why the e-commerce circle thin profits can not bring more sales? There are several reasons:

One, the e-commerce environment, the cost of promotion is increasing day by day, low profit suppression of promotional efforts

With the traditional offline business is different, doing business on the network, you can use a lot of promotional tools, e-commerce companies are also spelling promotion, which led to the promotion of the aspect of the cost of more and more expensive now. To support these ever-increasing high promotional costs, it is unrealistic not to have more profits.

So when we are in the pursuit of thin profits, will invariably make our promotion become more bound, when the promotion of the strength of the time began to weaken, in this Internet, you reap the natural become less.

Two, price transparency, you drop, I drop, we drop

With traditional enterprises is different, the price transparency of the e-commerce industry is the whole network, the user price comparison is also more direct and convenient, so when we do the price reduction promotional strategy, it is likely to bring about the result is the whole industry price decline, and ultimately, you drop, I drop, we drop the scene, so that Our sales naturally will not get growth because of price cuts.

Three, the e-commerce environment is chaotic, low-priced goods lead to controversy

The threshold of selling things online is low, so there are a lot of unscrupulous businessmen pouring into the industry, which makes the domestic e-commerce market is very chaotic, which is why now online shopping has been a big wave, but all the people are still on the online shopping there are concerns. When faced with low-priced goods, people will have more to consider, why the goods will be lower than others? Is it fake? etc., so when we do low-priced promotions, we may also lose some customers.

Four, per capita consumption level rise, the concept of brand above the price

Today people's consumption level has risen to a certain level, people buy things are also very important to the brand, the price of the factor accounted for less and less. So the low-priced strategy for people's stimulus is not so great, purely rely on low prices to attract users to buy is not enough.

Summary: Price reduction promotional strategy in the domestic e-commerce environment, does not necessarily bring good results, the old industry term of "thin profit, high sales" in the e-commerce world is not good enough to use.