Today, the main consumption scenario of the online market has shifted from the PC side to the mobile side. At the same time, an unavoidable fact is that the dividends of Internet traffic and mobile Internet traffic are gradually disappearing. This means that sellers in the online market, especially small and medium-sized sellers, will face difficulties. Why is this happening? The following is an explanation from three aspects.
(1) Lack of professional e-commerce talents
Many people believe that e-commerce is a supermarket and every e-commerce company can make a profit in this supermarket. Therefore, many companies have transformed from traditional industries to the e-commerce industry, and even retail companies have transformed to e-commerce driven by such high returns.
For example, in the process of a company entering the e-commerce industry, managers began to be responsible for online business. However, these managers have no experience in online business. In this case, can they get a share of the e-commerce industry and achieve success in online business? Can the transformation be smooth? The answer is very difficult. For companies that want to transform into the e-commerce industry, if they do not have professional talents in this field, it is destined to be difficult to succeed.
(2) Frequent occurrence of integrity issues
In recent years, e-commerce companies have frequently suffered from lack of integrity, such as false reporting of original prices, fake draws, and selling fake goods. These problems have directly led to a crisis of trust in the e-commerce industry among buyers. Although some large e-commerce companies have taken various measures to gradually improve their integrity systems, there are still many loopholes in the management of small and medium-sized e-commerce companies. Over time, these loopholes will lead to buyers’ distrust. In this case, the entire e-commerce industry will be impacted to a certain extent. These are the challenges that e-commerce companies need to face.
(3) Fierce price wars among e-commerce companies
In order to remain invincible in the competition, e-commerce companies have launched fierce price wars and have adopted strategies to lower prices. This can be verified from the preferential activities of various e-commerce companies. In order to attract buyers’ attention, small and medium-sized e-commerce companies continue to engage in price wars. Because if they do not sell products at truly low prices, it will be difficult for small and medium-sized e-commerce companies to attract more buyers.
In the vicious cycle of price wars, small and medium-sized e-commerce companies have been “exhausted”. If the price war continues and continues to challenge their cost bottom line, the profits of these small and medium-sized e-commerce companies will definitely be reduced a lot.
Tips
Under the influence of the above three reasons, the space of the online market has shrunk a lot, and e-commerce companies must take effective measures to get out of this predicament. For example, in order to reduce costs and increase profits, e-commerce companies can start with procurement business and do a good job in market research, product selection, product evaluation and warehouse management and other supporting work.