Why don’t I support my friends in e-commerce?

The profits of e-commerce are similar to those of entities, but the structure is different! ?Physical stores require decoration and display, and online stores also require high-investment visual image photography and creative planning; physical brands require high-investment advertising budgets, and the same applies to online stores; physical stores require shopping guides, and online stores also require customer service; physical stores require For rent and mall commissions, online stores also need mall deductions, or disguised commissions at the expense of price reductions to gain traffic; physical brands require strong product research and development, and online stores also need independent design teams as they grow larger. ?Coupled with the increasing cost of online media, Taobao Mall suddenly began to charge high fees. In the future, there will be no essential logical difference between the Internet and entities. Therefore, in 2012, when e-commerce has been developing for 10 years, it is a joke to say that the Internet is low-cost and low-investment. ?Just search for a certain product on Taobao, and tens of thousands of answers will appear. Why should others buy your stuff? China is full of labor-intensive industries, and everyone has a poor background. Why can yours be sold at a high price? If you want to prosper on the Internet, you must be willing to invest. ?When it comes to investment, you must first understand: e-commerce is not a vassal of the entity, but a huge incremental market. You should not think about just selling unsold goods and slow-moving products on the Internet. The result of this will be that you will never survive. ?To enter the e-commerce industry, you must have a clear mind and the courage and awareness to start from scratch. Everything in the entity needs to be shuffled and reinvested. ?

Commodity input ?The most critical are three questions: ?1. Have you planned product selection and product stocking in advance based on online sales forecasts? 2． Is there a network-specific warehousing system? 3. Are there any products exclusive to the network? ?

For companies that truly engage in e-commerce, e-commerce companies must answer three questions at the beginning of each quarter: 1. How many sales do you plan to do next quarter? 2． How much advertising budget is needed? 3. How much quantity of goods do I need to prepare in advance? ?For example: an online brand is expected to make 1 million yuan in the next quarter (calculated at a 60% discount), and needs to invest 200,000 yuan in advertising, and needs to prepare goods in advance and hold up funds of 500,000 yuan (calculated at a 30% discount). Gross profit 100-20-50 = 300,000 yuan, personnel cost 100,000 yuan, commission, freight, and management costs 100,000 yuan, then the net profit is 100,000 yuan, and the net profit margin is 10%. This is the simplest plan. ?If you don’t even have the courage to occupy hundreds of thousands or millions of inventory funds, then it’s best not to do e-commerce.