The Promotion And Marketing Of E-Commerce In Jinjiang Is Actually "Burning Money".

Recently,

The sales revenue of H company, which specializes in e-commerce, has increased to 30 million yuan, but after accounting, the company has lost 4 million.

To this end, H has laid off a large number of employees and replaced the director of e-commerce.

Behind this, it appears that the rapid increase in the cost of electricity providers, the promotion of e-commerce in the "burning money" phenomenon.

Experts think that to solve these problems, community-based marketing may become a good outlet for e-commerce enterprises.

Case: 30 million sales lost 4 million

Recently, H, a company specializing in e-commerce in Jinjiang, has been laying off workers and replacing the director of e-commerce.

At the same time, the company also reduced the amount of online advertising, and invited experts to "pulse" the overall operation of H company.

"Our e-commerce sales revenue increased to 30 million yuan last year, but we counted it out, but at last it lost 4 million."

It is understood that H company is located in Jinjiang.

The head of the business enterprise told the reporter about his difficulties.

H company official told reporters that this thought that 30 million of sales can make a steady profit. After deducting the cost of manpower, logistics, promotion and so on, he has to paste in 4 million.

"Sales revenue has increased, and enterprises have lost money. There must be some problems."

For those who have just been involved in the e-commerce industry, H executives always wonder where the specific problems are, so they have to invite the team of experts to diagnose the company.

The same problem happened in Quanzhou F company. Fortunately, the F company, which specializes in children's shoes, is still at a profit and loss balance.

But Mr. Wang, who is in charge of the company, told reporters that when he looked at the company statements every month, he could feel that the company's profit margin had dropped.

"In the report, our sales volume is increasing every month, but the sales cost of" rushing up "is higher and higher.

Wang told reporters with concern that if this trend continues, his company will also enter the state of "losing money".

Coincidentally, according to Dangdang, vip.com Q1 earnings report: Dangdang net revenue growth of 58%, profit change from profit to loss, to 9% of the loss rate; vip.com realized revenue growth of 250.7%, profit change is aggravated by losses, to 11.3% of the loss rate.

Reason: electric business promotion "

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Why did the increase in e-commerce revenue appear to be a loss? Reporters interviewed several CEOs of e-commerce companies, who agreed that the overall cost of e-commerce operation is improving rapidly.

"In particular, the rising cost of talent and promotion has raised the threshold for e-commerce companies to enter the market.

Now that you want to sell products in this industry, you need to burn money.

Insiders Liu said helplessly.

In fact, compared with traditional sales channels, electricity providers are not cheap.

Mr. Chen, who specializes in electronic commerce in Jinjiang, calculates an account: he sold 6000 pairs of new shoes in Taobao in 5 hours a day.

But this huge sales volume was invested in huge advertising fees.

Mr. Lin told reporters that on the same day, he made advertisements in four locations of Taobao: home page focus, home page, three screens, and a category search sidebar.

"Rough calculation, the advertising cost of that day is about 200 thousand yuan."

He told reporters that a pair of shoes will be sold at 99 yuan per second, and that is 600 thousand sales.

"If we calculate the profit, if we promise not to lose money, the cost of this pair of shoes should not exceed 60 yuan, otherwise it will lose a lot."

In fact, this algorithm does not include other charges such as logistics, warehousing and so on.

"Nowadays, the market environment of e-commerce is changing rapidly. With the fierce competition, the rapid change of marketing environment makes it difficult for e-commerce enterprises to adapt.

Traffic and click through rates are very burning.

During the interview, Gao Yi, vice president of Xiamen SK e-commerce company, told reporters that buying a click of two or three years ago would cost about 8 cents. Now it has risen five or six times.

According to CEO of a footwear B2C e-commerce website, Baidu also advertised the same location last year, 35 months in a month, 70 months in the beginning of this year.

"Now it's even 800 months in a month."

In fact, the promotion cost of the electricity industry is high, and the increasing cost of operation and logistics is making the electricity providers feel the pressure.

Coupled with low price marketing leads to the small profits of the business enterprises, and the loss of corporate income is a strange phenomenon.

To this, many electric business enterprises can only "tears flow to the heart".

"We are making money by burning money."

An electric business enterprise responsible person describes like this.

Answer: community marketing or the way out for business enterprises

In fact, the mode of "advertising flow conversion sales" has been followed for many years.

It is the most basic survival means for e-commerce to attract consumers by buying large quantities of traffic and putting advertisements into account.

Of course, e-commerce companies are also working hard to build up their own logistics, which is more typical than the user experience and customer service. This has also become a typical upgrading process for e-commerce enterprises.

But in the face of the sharp rise in the operation cost of the electricity supplier industry, the "advertising flow conversion sales" has become the burden of the electric business enterprises. How can the electric business enterprises get rid of the embarrassing situation of high cost promotion and operation?

Zhou Hongmei, vice president and chief statistician and e-commerce expert of Zheng Wang consulting, analyzed the cost reduction of electric business enterprises from many aspects, such as more efficient access to traffic and lower management cost, but mainly from two aspects: regulatory economy and economies of scope.

Economies of scale mean that more business enterprises can share fixed costs. Economies of scope are more commodity sales on the e-commerce platform, which can raise consumer's unit price and achieve the goal of reducing costs.

When the number of consumers reaches a certain scale, with the help of consumers' word of mouth, it can achieve the effect of natural growth of consumers, thereby reducing the promotion cost of e-commerce enterprises.

"This has a critical point. At present, the base of many electronic business platform users can not reach this critical point, so many business enterprises need huge promotion costs and even lose money."

Zhou Hongmei told reporters that the use of community-based website promotion is easy to achieve this "critical point", community-based marketing or become a new way for business enterprises to reduce costs.

In fact, the significance of community-based marketing can not only effectively reduce the cost of operation of e-commerce enterprises, but on the other hand, it will become an important tool for the promotion of e-commerce enterprises.

In the view of Xu Yang, founder of micro-blog Yi, the advantage of the community website is that it has a large user base, and every user can become a conduit for communication.

"If your product can get the attention and share of" opinion leaders "in the community website, the product promotion effect will be very good.

And the cost is much lower than the commonly used advertising promotion. "

Xu Yang told reporters that in the process of community-based marketing, e-commerce enterprises should not only make product differentiation, but also focus on user experience and build a platform for communication.

"Everyone has the desire to share the fruits of shopping, and at the same time there is the need to find products that are desirable.

In this process, the dissemination of information through community-based marketing is actually equivalent to merchandise shopping guide.

For this reason, Xu Yang gave an example.

There was a very popular activity on the bean sauce: "I knew it was worth it after I bought it."

The content of the activity is very simple, that is, upload the picture you want to buy or the merchandise you have purchased, and attach a brief explanation.

This activity has been held for 4 times, with nearly 10000 users participating. Many people upload photos and find that they want to buy, but they do not know where to buy things. Some people even give purchase links, some even more than one, and even users start to spontaneously join the group to buy large scale group buying.

"Some electric business enterprises are also inexplicably fired."

Xu Yang laughed.