In the e-commerce field, the key to running a successful business lies in mastering some basic principles that can help companies operate efficiently, continue to expand and maintain a competitive advantage. The following are five principles that are important guides for the development of e-commerce businesses.
1. Subtraction is more important than addition
When expanding the scale of a business, the best way is usually to copy a successful model. Take Mixue Ice City as an example. As of the end of 2023, the number of its stores worldwide has reached nearly 36,000. To quickly expand sales, copying a successful business model is the key. However, the premise of rapid replication is that the business model cannot be too complicated. The simpler it is, the easier it is to copy successfully.
2. The 80/20 rule
The 80/20 rule states that 80% of the results usually come from 20% of the reasons. In the e-commerce business, 80% of sales are generally contributed by 20% of the products or stores. Therefore, the focus should be on the most important 20% of matters to get the most benefits.
3. The energy of focus is infinite
Focusing on one category or one field is often more effective than being involved in multiple categories or fields. Deepening one field can bring better benefits and competitive advantages.
4. Traffic is the key
In the field of e-commerce, traffic is always the most important. Private domain traffic is especially important because traffic will become more and more expensive in the future. Therefore, companies should start to build private domain traffic from now on, convert every customer into a private domain user, and continue to operate. The accumulated private domain traffic will become a self-growing gold mine in the future.
5. Content is traffic
No matter what platform it is, the essence of traffic is content. High-quality content can attract users, generate traffic, and ultimately convert it into sales. Therefore, companies must have the ability to do a good job of content, attract and retain users through various forms of content, and thus obtain continuous traffic and customers.
In general, the above five principles are the key to successfully operating an e-commerce business. Companies should constantly sum up experience in practice, and constantly adjust and optimize strategies according to market changes to maintain competitiveness and achieve sustained growth.