How to operate Pinduoduo well?

With the development of e-commerce platforms, there are more and more ways to play on major platforms, which dazzles consumers. So for operators, how can they grab consumers' attention? The author combines his own Pinduoduo operation practice to talk about several operation skills and share them with you.

I heard a joke before, which talked about the final destination of various positions in Internet companies. For example, product managers eventually become Didi drivers, programmers eventually become convenience store owners, and the final destination of operations is WeChat business .

Of course, this is just a joke, don't take it seriously, but it also reflects the anxiety of older people in the workplace. It is said that there is a 35-year-old phenomenon. If you are over 35 in the workplace, you will have no advantage. In terms of physical strength, learning ability, and reaction ability, you cannot catch up with young people. The only advantage you have over young people may be seniority.

But experience is not valuable in Internet companies . You are not a chef, doctor, or lawyer. The older you get, the more you lose value. This is also true for me. So, I have been anxious, thinking that my future destination may be micro-business. Do I really have to live like what I hated the most?

No, we must be brave enough to say no, but ambition alone is useless. We must have practical methods and ways. Pinduoduo's e-commerce operation is an industry that I believe I can work in until I am fifty years old.

E-commerce will never end. Our previous understanding of e-commerce was that one must be able to play by the platform rules and be proficient in driving. As the platform’s rules and regulations are iterated, we must also keep up with the times and keep up with the platform. This does not seem to be something that older people can do.

However, after being exposed to Pinduoduo for a while, I understand that Pinduoduo is essentially a supply chain business, which is about buying and selling . For thousands of years, buying and selling has been timeless and has no age limit. Pinduoduo is something that all experienced operators can pay attention to. So how to operate Pinduoduo well? Here I share some of my experience with you.

1. As long as the price is low, even a fool will sell it at a high price

Pinduoduo's main selling point is low prices, which is the foundation of its existence . Even if it wants to go for the mid-to-high-end market, it is impossible for it to give up the low-price market. There is a point here. For the same product, some merchants sell it at almost no profit, while some merchants sell it at a discount. The merchants who do not make money have no money to pay for advertising fees and can only hang it there. The merchants who pay a discount have enough profits and can afford the advertising fees, so they bid very high to grab traffic.

The platform cannot receive advertising fees for promoting low-priced goods, but can receive advertising fees for promoting high-priced goods. Which merchant do you think the platform will choose to promote? Sorry, the platform will choose the merchant that sells at a low price. Even if there is no advertising fee, the most important thing is to retain users .

What the platform wants most is that you pay the advertising fee under the premise of offering a low price. Can merchants solve this problem? There are ways, but the conscience will not let it go. You know. The above tells us a principle for operating Pinduoduo well. You don’t need to spend too much time studying how to drive. Just find a way to get the goods at the lowest price, and leave the rest to the platform.

If you are a manufacturer with a natural cost advantage, Pinduoduo is definitely the first choice, and you can easily crush your opponents. I am an agent, and I have transferred the money in the middle. The brand can arbitrarily reduce the price to 10 billion, but can we? Others' prices of 10 billion are lower than my purchase price, so how can we play this game?

2. High conversion and high production, low conversion and low production

When talking about Duoduo's direct train delivery, most people are very angry. What is this thing? It loses money when it is running, and there is no sales when it is stopped . What can we do? The kind of people who can achieve 10% of the production can only dream of it.

In fact, the real reason for this situation is that your product conversion rate is not good. I have seen many companies that have achieved a production rate of more than 90%, and I can also achieve a production rate of more than 20%. Is it because of my driving skills? I am ashamed to say that it is not, but the product has an advantage.

To give an extreme example, you sell genuine Apple phones on Duoduo for 2,999 each. You say that with 100 yuan spent on advertising, how much production can you achieve? Just fill it in with your eyes closed, and you can achieve a production of 10,000.

The truth is, the higher your product conversion rate is, the higher the production limit you can set. If you can't achieve high production, it ultimately comes down to the fact that your product price has no advantage, the details are not good enough, the main picture is not attractive enough, the DSR score is too low, the number of reviews is small, and so on.

Those hand creams and sunscreens that cost only a few dollars often have more than 100,000 reviews. If I go to such a link, I will place an order. Just imagine, between a link with sales of over a thousand and a link with over ten thousand reviews, which one has a higher conversion rate and which one has higher investment ?

3. Grasp the backend and make more money

Duoduo is different from what we understand. Your order flow and front-end gross profit seem to be in surplus every month, but when you withdraw cash, you will find that your income is not enough to cover your expenses. Why is this? It is caused by hidden expenses such as instant refunds, only refunds, and various after-sales services. If you don’t have a clear account of this, it is impossible to make money in Duoduo .

Take advertising production as an example, the break-even production is 2, the actual production is 3, and the profit is 50 minus 33, which is 17 points, which seems okay. But don't forget that the rule of the through train is that if there is a transaction, the money will be deducted, and the refund will be deducted in the same way. Let's calculate it according to the 20% refund rate, the actual production becomes 2.4, and the profit is only 9 points.

It seems that you can earn a little bit, but don't forget that there are also freeloaders. If you calculate it based on 10%, you will only get 5 points. After taking into account channel fees, cargo damage, etc., you are lucky if you don't lose money.

Therefore, before you do a lot, you must make the invisible back-end expenses the focus of your operations. The front-end may be very prosperous, but the back-end will make you feel depressed. Being careful is the key.

4. Deeply understand the word weight

When I first got involved in Pinduoduo, I had a question: why did my bids be much higher than others but my sales volume could not catch up with others? My materials, number of comments, etc. were all good. Later I realized that the problem lay with the weight of the link.

The word weight is very interesting. You can't see it, but it does exist . It directly affects how much exposure and sales you can get today. So how to do weight? Simply put, it is to do pit production. Some links can't be driven no matter how hard you try. You can register an event and get a few hundred orders, and then drive it again, and it will start to work.

We don't necessarily have to sign up for events, as that will most likely make you bleed. We can choose to search for ocpx, and get deals by bidding high, which will bring weight, especially for new links. I suggest that you search for a few orders. If the data increases quickly, you can switch to the entire site to amplify traffic.

There are many indicators that affect the weight: three-minute response rate, quality return rate, platform intervention rate, product conversion rate, etc. These can be reflected in the DSR score. The platform will not recommend products with low DSR. Without natural traffic, it can only take the strong payment route. If it is a low-priced product with a high volume, the DSR is low, so just make a new link.

at last

The above are some tips for operating Duoduo. I hope you can learn something from it. It is not difficult to operate Duoduo, but it is difficult to understand it. I suggest that Internet veterans who are interested in Duoduo can register a store first and put a few products on it to get a feel for it. The world here is really different from other e-commerce platforms.

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