It was my first time doing e-commerce on Taobao in 2012, and I worked on e-commerce step by step. I worked on e-commerce for three and a half years. I started to get in touch with it since 2009. At that time, I used Alibaba as a platform, which was an export platform. I worked in it for more than two years. Later, I started doing e-commerce in 2011. At that time, the starting price of Taobao Mall was relatively low at 16,000 yuan. I made it until April 15, and our sales reached 100 million yuan. Later, I also started to do JD.com and Meituan. In 2015, I started to form a green home and started to make O2O in fruits. Last year, we were still focusing on the entire store, plus the online one, and we opened 50 stores in Shanghai. We also experienced a lot since the year. Starting from May this year, we have begun to focus on social e-commerce and do the e-commerce model based on social forms. Everyone can also feel that advertising is getting more and more expensive. I forgot that it was originally through the express train, but the click fee was getting higher and higher. I think traffic is the first step. Without traffic, there is no need to talk about what comes next. Many small and medium-sized sellers are still paying attention to traffic. Everyone says that e-commerce now does not make money. Why? Everyone says that there are more and more stores and the traffic is getting more and more expensive. The traffic spent on Taobao every day will reach several million, the traffic will reach three to four million every year, and the advertising fee will reach five to six million, which will even exceed our own profits. I have done many e-commerce companies, and the traffic of Taobao e-commerce is relatively cheap. The official website says that it may reach 1:1.5, and the cost of a user is 100 yuan, so Alibaba is relatively cheap and very accurate. I want to share with you my experience from the beginning to the present.
I think Amway is the easiest thing to change careers. You may feel that it is difficult to make money, but it will be even more difficult to make money when changing to another platform. Alibaba is a platform for accumulation of funds and experience. It is the most basic place for everyone to make money. From May to now, I have accumulated a lot. So from the first order, now our daily order volume is over 10,000, and we can rent it for a little over 10,000,000. This speed is still very fast. Our monthly increase can reach 20% to 30%. What we want to talk about is our five-month development history, and the maintenance of distributors. We have been researching and learning in this area. The third is the difference between e-commerce and micro-business. The fourth is the development trend of mobile social e-commerce, and the fifth is to provide some choices for traditional e-commerce. As a mall, we should think about what we should do and what model we should follow. At the beginning, we were thinking about what we should position ourselves as. First of all, we positioned it super fresh and delicious but not expensive, so our price positioning came out. So we must follow the popular route, and use domestic products, domestic products, and foreign products together. Positioning is very important. If we position it as organic, we may not develop so quickly. The second is our model. Do we spend money to open a store or open it for free, because some platforms charge fees when entering. We positioned the model of buying and selling by ourselves, but the concept of buying by ourselves on the market is not big. But later, our distributors bought and sold by themselves were almost right. One of our distributors buys it on average 4 times a month, and the distributors are actually our most loyal users.
So today we are going to build our entire system. After the system is completed, we have to consider where our first user comes from. Our first user comes from friends around us through their sharing and social software. After two or three days of sharing, the order reached 300 orders, and our distributor quickly exceeded 1,000. How you can blow through it faster requires a detonation point, so promotion is a well-known detonation point, and of course we have to consider our cost. At that time, we chose to use flash sales to increase our traffic, increase its click rate, and promote its conversion rate. Through such a gimmick, they click in and make a purchase. It was through this method that we quickly made 1,000 orders. Later, we determined how much free shipping is available so that we could further screen users. Then we set a threshold, and we can make higher and higher profits. You need to maintain your detonation point there. After a week or two of the promotion, your order has reached one or two thousand orders, and the growth rate has slowed down. Then there must be a certain reward. The focus of the reward is on opening a store. The bonus does not need to be too high. The key is to participate and let more people participate. When our rewards appear, our profits turn over a lifetime and our orders increase by 60%. We also made some questions when making rewards. In July, we made about 5,000 orders. At that time, we were thinking about how we could do it stronger and longer. Looking back at our supply chain, user experience, backend upgrades, user management upgrades, and later to our entire distributor supply group, returning to the essence of the product.
Now, we return to user management. We have 70,000 distributors, and then we proposed the concept of paid store owners. Through payment, we can distinguish whether 70,000 distributors should buy or sell themselves. The people who pay pay have a higher viscosity to you, giving you many channels to broaden the market, and our distributors are also rising.
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