E-commerce pricing determines the gameplay, and the gameplay determines the order volume

How to make money in e-commerce? Let's see what the author says~

There are many friends around me who are engaged in e-commerce, and everyone has their own way of playing. I found that those who really make money in the e-commerce field must be based on their own resource characteristics and combine appropriate playing methods to bring about a take-off in orders, and then achieve the goal of making money.

Without evaluating the strengths and weaknesses of your own resources, and making wrong decisions that do not match them, and choosing the wrong way to play, you will end up with a situation where the link cannot be established and you will spend money but not make any money.

How resources are divided specifically, such as non-standard and standard products, high-priced and low-priced, high-profit and low-profit, different combinations require different ways of playing to achieve them.

For example, how to play with non-standard products with low prices and high profits? How to play with standard products with high prices and low profits? It's all about learning. There is no one-trick pony that can beat all opponents in the world, and there is only one trick that suits you.

1. Product pricing determines gameplay

There are three types of product pricing: high price, average price, and low price. Among them, low price is definitely the easiest to make. For example, the global shopping store has the lowest price on the entire network. The money I spend on one bottle of shampoo in the official flagship store can buy two bottles in the global shopping store.

Do you think such a link needs to be operated? There will be orders as soon as the link is posted, plus the weight of the global shopping store, the operation is easy to make money.

But then again, there are only a few people who have advantageous resources in e-commerce. Most of them are either manufacturers of non-famous brands or agents who purchase goods. When such resources are used, they usually sell at the market average price or a price higher than that of their peers.

There are only a few companies on the market that can really offer low prices. Indeed, the majority of traffic has been taken by them. We have no price advantage, so we can just grab the traffic of the middle to upper-middle groups. Although it is less, the order volume is also acceptable. Believe me, this group of people is enough to support everyone.

How to grab such traffic? If you set a high price, then you must force paid purchase. Since it is a high price, don't play tricks, low-price diversion and so on, it won't work. For example, if a bottle of shampoo is 9.9 yuan, the low-price diversion price can be more than 1 yuan.

But I sell shampoo with a customer order of 70 or 80 yuan, so the lowest SKU must be the price of a single bottle. Buyers who are looking for bargains will not order when they see my leaked price. This is exactly the effect I want, because we want high-net-worth users.

After setting a high price, the material must be higher-end and more stylish than the low-priced one. I suggest you make it original. Since you are selling at a high price, you must have good materials to match it. Otherwise, if you use the same material and others sell it for 9.9 yuan and you sell it for 99 yuan, only a fool would buy it.

Remember to set a high price, original materials are the core. Then attract people by bidding high, and don't think about making money at the first stage, unless your materials are really good or your qualifications are very good.

The most difficult part of strong payment is knowing when to raise the price, that is, when your link weight and quality score are enough for you to raise the price, and when the order volume does not drop. This depends on your experience.

Compared with high prices, it is easier to start with an average price. Link to the market average price, and the material is generally available, and you can go and drive it, with a high probability that it can run. For such products, you can combine it with the micro horse flat material.

2. Gameplay determines order volume

When I first started selling high-priced, high-profit products, I always felt that it was difficult to increase the number of orders and the ceiling was very low. As I understood the platform traffic, I realized that this was the fate of high-priced, high-profit products.

The platform's traffic distribution is precise push. If you usually see a 9.9 yuan shampoo, the system will recommend you products in this price range. If you see a 99 yuan shampoo, the system will recommend you a higher-priced product. Everyone should know what Pinduoduo's target group is, the 28th rule.

Therefore, when you choose to sell high-priced and high-profit products, you must accept the reality of low order volume, because there are not many user pools on the platform. I calculated that there are 10,000 high-priced links in the same category, and more than 100,000 low-priced links.

There are fewer users with high prices and high profits, fewer links, and smaller orders, so the competition is actually relatively less fierce.

For me, a hundred orders a day may be the limit for high-priced products, but for low-priced products, 5,000 orders a day is a piece of cake. So, do you understand? The way you choose to play directly determines the ceiling of your order volume. If you understand this principle, you should be more open-minded.

We saw others online that they could get 4,000 orders a day in 7 days, and we were so envious. Then we looked at the average order value, which was 5.5 yuan per order. We could only make a few cents per order. When I first started doing e-commerce, the logistics cost was 4 yuan per order because the order volume was small.

You see, the logistics fee for 10,000 orders is 1.5 yuan per order, which means the logistics fee alone has been reduced by 2.5 yuan. It is impossible to compete with such a product for traffic. This is not a problem of ability, but a matter of resources.

3. What is the best choice?

This goes back to the essence of e-commerce, how to make the most money. My suggestion is to open at least two stores, one with high prices and high profits, targeting high-end users, with fewer orders, but more profits and less work.

Another store plays with low prices, with the goal of receiving thousands of orders a day, so that the funds can be turned over quickly. The profit from each order is small, but the turnover is large, so the final profit is not small.

The above still needs to be combined with your own resources. If you can't play low prices, just add 30 points to the purchase cost and control the car fare to 10 points. You may feel that you can't drive the car, don't doubt your driving skills, the problem of the car not being able to drive is most likely due to the materials.

If you make a main picture with a 10% click-through rate, the car will naturally run. Playing high prices requires high operational capabilities, which is also the value of e-commerce operations.

Everyone is playing with low prices, and products can take off as soon as they are put on the shelves. What else do we need to do? We should take advantage of our youth to master the skills of refining selling points, visual production of main pictures, product optimization processes, and other things that take time to understand and comprehend. These things cannot be learned in a short time, so they are valuable. Like driving skills, those are really worthless.

4. Final

E-commerce operations are far more complicated than we think, involving pricing, market, front-end and back-end, user psychology, seasonal changes, platform trends, etc.

If you really want to be successful in e-commerce, you need to have a lot of things in your mind. For example, when your product price is determined, its future path has actually been determined. It depends on whether you have the ability to make this link reach the end smoothly.

Author: Tiger Talks Operations WeChat Official Account: Tiger Talks Operations