"The money I made by luck in the past few years has been lost this year by strength."
This joke spreads far between e-commerce people! Although it is a joke, it expresses the voices of many e-commerce people. E-commerce has been developing for more than ten years, from grassroots entrepreneurship to now major brands entering the e-commerce industry, from blue ocean to red ocean, from riding on the east wind of Internet traffic dividends, you can easily make money, but now you are constantly losing money in the fierce competition. Countless e-commerce bosses are constantly anxious. As an e-commerce boss, have you considered a question: What will your e-commerce company rely on to live in the next three years? In fact, the main reasons for the sudden defeat of countless bosses with over 100 million yuan are as follows:
01 External business aspects
1. When choosing products , it is said that choice is greater than hard work. A good e-commerce boss has a unique vision in product selection and has defeated 50% of the market competitors. However, many bosses often do not pay attention to product selection during the traffic bonus period, and rely on the traffic outlet to achieve their own performance. When the traffic outlet is gone, the business drawbacks are very obvious. Therefore, if you can choose the right category or field, you will live a very prosperous life. 2. Price War In fact, sellers also hope to sell at high prices and do not fight price wars. However, due to the transparency of information and the large number of price comparison software, it makes price comparison very easy, which is not very beautiful for merchants. For the same product, you can't sell it when the price is high, so you can only sell it at a low price. So in order to compete for traffic, everyone is going to sell it at a low price, and price wars are coming one after another.
02Internal management aspects
1. The accounts are chaotic. Many e-commerce people have low starting thresholds. In the past few years, few e-commerce bosses would hire a cashier to keep their accounts alone. The accounting is entirely based on their brains, and of course they remember it inaccurately. When I spent money, I thought I should spend it here and there. By the end of the month, I found that there was a lot of expenditure, and my income could not cover the expenditure. In fact, no matter the size, finance should be standardized. You must figure out how much you pay and how much you make in a month. You cannot find out until the supplier asks for the account and comes to your door.
2. If you don’t know whether the gross profit margin is calculated clearly , the product pricing is based on your feelings. If you buy it for 10 yuan, you can sell it for 19.9. If you can sell it for 29.9, you will feel that you have a lot of money. But often 29.9 is not profitable, and labor, water, electricity, express delivery, packaging, loss, and promotion fees are deducted, and it will be gone in the end. It is often said that e-commerce is de-intermediation and there are no middlemen to make a difference. But is this really the case? Online, can our sales price really be lower than offline? No. There are platform usage fees online, including deductions, manual labor, promotion, logistics expenditure, packaging expenditure, gifts, office costs, inventory losses, etc. These must be converted into the product when pricing.
3. If you don’t establish a good talent echelon, you will quickly recruit people when your sales have risen. As a result, because there is no good promotion mechanism, all the good talents will be trained. Moreover, the more people, the more things the boss will have in management, and the more energy you have, the more energy you have in managing people. A company does not have a good talent echelon and only focuses on blind expansion and recruiting people blindly. If newcomers do not create profits to fill this part of the expenditure, the company will be in trouble. So when recruiting, you must calculate "human efficiency". How much profit can increase one person? If this part of the profit is not enough to pay the newcomer’s salary, how long can you last? Therefore, when we increase the number of team members, we must first increase the profits and then increase the number of people, rather than relying on one person to increase more profits.
03 Strategy Global
Most e-commerce bosses have a serious lack of understanding of strategy, and the price of not understanding strategy is that when the future is coming, they can only fail step by step. Many e-commerce bosses become bigger and fail to fully consider the strategic level and are frightened when their performance declines slightly. In fact, in addition to the lack of foundation in management and business, the lack of strategic level is also a major drawback. If your company does not pay attention to product selection, strategy and management, then please think: What exactly will your e-commerce company rely on to live in the next three years?
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