When Is The Electricity Supplier Profitable?

Lately

The real cause of loss

Why is the real operation of the entire B2C industry still in the current situation of e-commerce?

First of all, from the trend of analysis, according to the 28 principles, the whole B2C is still in a very small number.

Therefore, under the current backdrop of China's e-commerce, many of Taobao's big C are profitable because they aim at 80% of online shoppers, and B2C is mostly losing money, because B2C is only targeting 8/10000 of the small crowds, making it difficult to make profits.

The second reason is that many of the B2C who fail or have bad profits are the problem of operating rhythm.

If we can have a deep understanding of the status and facts of e-commerce or B2C mentioned above, B2C website operators should use small steps to run faster rather than rush to run fast.

Because China's e-commerce is only the initial stage of rapid development, rather than the stage of rapid development.

Many business failures, such as PPG, are the result of too fast operating speed.

The third reason and lesson is that cash flow is the blood of B2C entrepreneurs.

At present, the B2C industry is generally not yet profitable, and the cash flow is the blood of B2C website.

Many of the e-commerce websites that are covered in the cover story of the "world online merchants" have lost their ability to self generate blood, and bankruptcy or decline is inevitable.

Having a deep understanding of cash flow and having experience is one of the most important criteria to gauge whether a B2C business will be able to do business and whether it can do business or not. Good cash flow requires B2C to have a good supply chain.

The lesson from many martyrs B2C to our latecomers is that the core of the initial stage of e-commerce is to achieve positive cash flow.

When China's B2C is generally not profitable, at the supply chain management level, if the website sells 1 million yuan per month, the supplier has 2 months' accounts, and the logistics can settle accounts within 1 months, then the 1 month time difference can be used to make use of the 1 million yuan sales cash flow turnover.

Therefore, the electricity supplier B2C should pay attention to the pace of operation. There are 2 million yuan of funds to match the resources according to this amount, and go for a quick development.

To sum up, the lessons of the fallen B2C to our latecomers are profound. Do not underestimate the difficulty of starting an electronic business. Don't be confused by the thriving B2C's surface and should be down-to-earth.

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Compared with the traditional marketing concept, marketing 2 is not a parasitic advertisement, its main body is based on people's "communication interaction, word of mouth and community relations" on the dissemination.

Everyone, every community, may become a channel of communication, from active interest to interactive experience, and to widespread diffusion, its communication channels are almost unlimited.

Because these channels of communication and interaction are being combined with the growing development of community-based e-commerce, there will be unlimited shelves.

The three infinite superimposition of unlimited personal communication, unlimited community interaction and unlimited shelf is the future value of marketing 2.

Electronic commerce industry

B2C has been in trouble.

At present, two B2C listed companies are actually not comfortable: Mcglaughlin was sued by US investors, and Dangdang Li Guoqing recently broke up with sina on micro-blog micro-blog.

In fact, two B2C listed companies are nearly 10 years of loss, because they are "profitable" because of listing. The real operation of listed B2C is likely to be a loss.

Big B2C loss plus burning money supported by VC

Such B2C is represented by Jingdong and van guest. At present, it is not only in a huge deficit state, but also competing to burn money under the support of venture capital.

This type of B2C also includes Marceau, Amoy, and so on, and almost all the key words of B2C that get VC funds are "loss" and "burn money". Those B2C giants who are known to be profitable are just "idiotic dreams" and public relations words that no one believes.

When small entrepreneurial B2C closures,

At present, small entrepreneurial B2C continues to fail.

Earlier, I participated in an electricity supplier forum in Shenzhen. Statistics showed that Shenzhen had thousands of small B2C shut down last year.

At present, it is recognized that the starting threshold for B2C platform entrepreneurship is 20 million yuan, and no 20 million yuan will not touch the B2C platform. This has become a consensus among operators who have real experience in operation and operation.

And this year, the cost of electric network promotion has increased by 2 to 3 times without suspense. Undoubtedly, it is even worse for small B2C.

B2C of traditional enterprises crossed the river by feeling the stones.

At present, more than 50% of the online sales of traditional enterprises come from Taobao, and most of their traditional B2C platforms are still at the stage of "display", and basically have no sales volume and influence.

Shao Xiaofeng, general manager of Alibaba China division recently said that if he wants to play with e-commerce, it will be hard for him to play. He used to "huff" the EMBA students of China and Europe to do business. Many traditional business owners have wasted tens of millions of dollars and have nothing to do with it. At present, there is only one success.

He believes that "marketing is probably one of the most important skills in e-commerce.

Marketing is not necessarily more than who spends more money, but is it able to make effective use of the capital invested.

Vertical industry B2C no successful case

Many categories of industries are thrived on Taobao, but there are basically no successful cases in the application of B2C.

At present, many industries are like this: for example, the cosmetics industry, there are no sales of over 100 million vertical B2C; mothers and infants, even red children also have business problems, and other maternal and child B2C are even more difficult; the household industry, except for Taobao's success in sales, has no successful precedent for Taobao; toys, Baidu's B2C entrepreneurs have just started to invest in this industry, but they have all abandoned it.

There are almost no vertical B2C sales sites that sell thousands of single business sites, and the sales volume of these industries under the traditional offline businesses is over 100 million yuan.

Community based e-commerce looks beautiful.

Although the prospect of community based e-commerce is very good, the current community e-commerce can not really continue to generate sales volume.

On the whole, the community-based electricity supplier is still in the stage of promoting sales directly to zero, and tomato tree is just one failure case.

An internal data shows that last year, 1/3 of the sales of good Lok came from SNS websites, but almost 100% of them were obtained through advertising. The so-called marketing 2 mode has not yet produced an order.

E-commerce marketing mode in China at present only group buying and limited time rush to buy, can be proved by actual performance can make big sales.

Almost all other B2C models, such as community-based electronic commerce, have not been proven to be big and productive.

B2C exploration in retail industry

In the US, the top 10 B2C in addition to Amazon are all B2C in the retail industry, while none of the top 20 of China's B2C is in the traditional retail industry.