Before uploading products, we need to position ourselves according to our own situation. The seller’s business model is generally divided into three types: the first is the distribution model, which adopts the form of drop shipping; the second is the vertical business model, which only sells its own goods; the third is the mixed model, that is, some stable supply + some no supply.
The distribution model is also called the no-supply model. It is essentially an arbitrage model to earn the price difference. The distribution model is to collect goods from other platforms through software, purchase in large quantities, and obtain traffic and orders through quantity. It has the characteristics of no inventory, low capital investment, low operating risks, and easy adjustment of business direction. Therefore, it is suitable for people with limited funds and no electricity. A “novice” seller with business operation experience. The number of self-operated products on the shelves usually reaches tens of thousands.
At the same time, there are also some problems in the distribution model:
(1) The unit price of the product is slightly high, and compared with large-volume purchases, it is impossible to obtain a more advantageous product price< /p>
(2) The supply of goods is unstable, and it is easy to be out of stock and unable to find the supply.
(3) Freight costs are high. Compared with bulk purchases, each order needs to bear freight.
(4) Without actual contact with the product, the quality of the product cannot be guaranteed, which may easily lead to negative reviews from buyers
2.2.2 Vertical business model
With a stable supply of goods Brand owners or manufacturers often have strong financial strength, generally adopt a vertical business model, and can bear inventory risks. Compared with the distribution model, brands or manufacturers that adopt the vertical business model not only have strong supply chain and price advantages, but also can carry out refined operations for their own products. It is easier to upgrade products based on feedback from the customer base and create Brand influence and increase the added value of the brand.
The vertical business model is conducive to controlling upstream and downstream channels, and strong financial strength also helps sellers conduct market promotion. If the target users are accurate, efficient advertising communication efficiency can be achieved in a short time and a brand in the vertical field can be built.
The biggest risk of the vertical business model is the occupation of funds and inventory. If the goods cannot be sold on a large scale, it will easily cause huge losses.