Pinduoduo's strong payment operation strategy

In Pinduoduo's operating ecosystem, forced payment has become a key strategy for many merchants to pursue profits. With rich experience in operating Pinduoduo stores, the author of this article shares a complete set of forced payment operation ideas for your reference.

E-commerce is difficult, as difficult as climbing to heaven. It is difficult to get a big order, as difficult as climbing Mount Tai. There is only one word to describe e-commerce this year: difficult. Although I say this, but looking at the record-breaking daily sales in the background, I can't help but sigh: Hey, why is it so difficult for all my e-commerce friends!

Hahaha, the above is purely fictional. If there is any similarity, I would be really embarrassed.

Okay, let's get back to the point. Let's talk about Pinduoduo again. Is it easy to do business in Pinduoduo this year? To be honest, it's not easy. As you know, there are two ways to play Pinduoduo, natural flow and forced payment. Let's talk about natural flow first. There is still some, but the traffic is much less than in the past.

This year or since last year, the platform's tone has been forced payment. Regarding forced payment, I still have a lot to say, because I am the most used to force payment when I operate Pinduoduo stores.

I sell products of the same cost at three times the price. Although my competitors have more orders than me, their profits are not even half of mine. Do you think that doing e-commerce is for the fun of shipping? Of course not. Doing e-commerce is for profit.

Although the number of orders for my paid service is not very large sometimes, the profit is enough. The most amazing link can make a profit of 150 yuan per order, and I can get 20 orders per day steadily, and they are regular products. It's really a piece of cake to find something that you can't find even after searching for it everywhere. It really doesn't take much effort to make money.

01 Step 1: Pricing

Have you heard of the theory that pricing determines how to play? If you haven't heard of it, you must memorize it today. What does pricing determine how to play mean? It means that before the product is put on the shelf, I don't think about how to drive it, nor do I think about testing the style and link, but how to play this product.

Just like facing children with different personalities, such as introverts and extroverts, what kind of educational method can be used to cultivate them into talents? Teaching students in accordance with their aptitude is definitely the most appropriate. The same is true for linking. If the link has low profit, you can't use high-profit gameplay, and vice versa.

Since we are playing with forced payment, the profit must be high. What needs extra attention is that this profit is based on the manufacturer's cost. If you are an agent, your cost is the purchase price, which is equal to the manufacturer's promotional flash sale price. Sorry, you can't play with such forced payment.

The profit I'm talking about is double or triple the manufacturer's cost price. If the agent's purchase price is doubled, even the king of heaven can't force them to pay.

Do you understand now? The price of forced payment starts from two or three times the direct cost. The specific multiple can refer to the actual selling price of competing products. The difference should not be too big. For example, if the cost of a product is 15 yuan, and the competing product sells for 20 yuan, you can double it to 30 yuan, which is enough. If you triple it to 45 yuan, then the forced payment will be in jeopardy.

02 Step 2: Determine the fare

I found that you must be good at math to do e-commerce, because anything involving driving is an arithmetic problem. How to set the fare? I will give you five seconds to mentally calculate what the profit margin is when the price is doubled? 5.4.3.2.1… The answer is 50%.

If you guess it, the problem will be solved. What is the profit margin of 3 times the price? The answer is 66%. This is the profit margin on the surface, but it is enough.

After the profit margin is determined, in fact, no matter what the product is, no matter what the click-through conversion data is, we can directly determine the driving cost-effectiveness bid. That’s right, it’s 3!

With a bid-to-production ratio of 3, the payment ratio is 33%, which is 2 times the price. When the profit margin is 50%, without considering returns and various miscellaneous deductions, we have a profit margin of about 20%. If the price is 3 times, the profit margin will be even greater.

This is the panacea method of forced payment and fixed fare. You may ask, if our product conversion data is very high, then the investment-output ratio of 3 is too low.

This is indeed possible. I have tried a cost-effectiveness ratio of 10 to run high-priced links, and it works. However, if my e-commerce friends want to increase sales by paying high prices, the cost-effectiveness ratio must not be high, unless you are content with the status quo, know when to stop, and make a profit from every sale, then any high cost-effectiveness ratio is fine.

03 Step 3: Test the link

The selling price and bid are set, what should we do next? The answer is to test the link. Don’t think that you will definitely get a big hit if you follow this idea. Let me tell you, it’s impossible. Whether the link can get a lot of volume is probabilistic.

According to my many years of experience in operating Pinduoduo, no matter whether I was a newbie before or a veteran now, it is impossible for 10 links to be successful. Although I have more experience now and the probability of successfully setting up links is much higher, but since there is a probability, then the way to ensure that we are 100% successful in setting up a store is to post more links and test the links.

According to my estimation, among 10 links made with great care, at least one link with good data will be able to run. It depends on the effect of the material of the link you made. If the material is very bad, let alone 10 links, even 100 links will probably not stand out.

We should pay attention to every link we put up and treat it as the main link. In this way, you can put up 10 to 20 links at a time, and then get a return on investment ratio of 4 in the first stage (double the deduction for rapid promotion). By testing in this way, we will find links that can enter the second stage. For example, those links that have not entered the second stage after running for one or two weeks should be directly removed from the shelves. It is useless to keep them, and it is a pity to discard them.

When the link enters the second stage, you can run it according to a return on investment ratio of about 3. As long as the materials are up to standard and the foundation is in place, the net profit you get from running the link in this way will be at least 5 points based on the highest refund rate.

E-commerce is a business, and business is all about accounting. How much money is sold, how much money is earned, and how much money is spent, all must be calculated clearly, and by forcing payment, you can make continuous and stable profits.

04 Last

There are also operations to drag prices or increase the number of orders, but due to limited space, I won’t go into detail. Pinduoduo is indeed quite simple, 2~3 times the price, 3 times the production, and novice links can easily generate orders by following this operation idea.

But everyone should remember that methods are just methods. In the actual application process, they should also change randomly. The results of doing e-commerce like a complete formula are often not very ideal. Because e-commerce involves too many details, everyone should also make corresponding optimization adjustments based on different data feedback during the process. For example, what should I do if I am compared with others in price?