Chapter 1012 Huge Business Opportunity
Li Mu did not participate in the three-day Taobao Personal Webmasters Conference. He only appeared on the first day of the event and introduced the Taobao Alliance's 2.o algorithm to the vast number of personal Webmasters. This is just a new set of The algorithm has made him sought after by individual webmasters across the country.
Individual webmasters who have been working alone and immersed in their personal websites have truly experienced the convenience and superiority of relying on a large platform from Li Mu and Taobao. This further enhances the attractiveness of Taobao Alliance to individual webmasters.
After the news of the Taobao Alliance 2.o algorithm was reported by the Internet media, almost all of the individual webmasters who have not joined the Taobao Alliance in China submitted applications for joining in the background of the Taobao Alliance. There are also some small stations that have just been registered and have almost zero traffic.
A large amount of Internet traffic is converging from various websites to Taobao, and the direct impact is the sharp rise of Taobao's data.
Taobao's advertisements are all over the entire network, and all advertisements point directly to products, not websites, which greatly stimulates users' desire to buy. Therefore, under the promotion of the entire Taobao Alliance and member websites, Taobao's registered users have soared all the way. The trading volume on the platform is also growing.
The growth of online product display and exposure has directly transformed into users' purchase behavior. As a result, a boom in online shopping and Taobao for all has been set off, and the e-commerce industry has become an instant hit.
In Li Muxi's achievement, through this 2 layout, there are a large number of small and medium-sized sellers, and in a short period of time, with the promotion of Taobao alliance advertising, they have achieved considerable profit returns on Taobao. The most direct impact is that It has stimulated a large number of netizens and private individuals to register as Taobao sellers.
If an industry wants to really rise, the surge of employees is the most important symbol. No matter how big the market is, it will be blind if it does not carry the load. In Li Mu's view, the best situation of the industry exhibition is that there is a surplus of employees, and it must not be the market demand. There is a surplus due to the constant consumption of the market.
Through the Taobao Alliance, Li Mu brought the entire Internet industry to the direction of e-commerce at once, which has a great impact on the entire industry.
The Internet industry was amazed at Taobao's perfect turnaround. Originally, all industry insiders believed that Li Mu's Taobao focused almost all of its energy on the b2 business. Under this circumstance, the image of Taobao b2 is almost ingrained, and they want to pick up 2bsp; the current Internet industry has not entered the vertical mode of vertical expansion, and almost all practitioners are very greedy, and hope to try their best to Horizontal exhibition, the wider the direction occupied, the better, so the most fearful thing is to be tagged by users, because once a special tag is tagged, it means that the exhibition direction will be imprisoned most of the time.
At first, Boss Ma wanted to take advantage of the opportunity to use force 2 to grab Li Mu's lead, but he also felt that Li Mu was too strong in the direction of b2.
It was difficult to turn around, so I wanted to grab the market of Li Mu 2 by virtue of its light-packed and flexible features, but no one thought that Li Mu didn't care what kind of label his platform was labeled in the minds of users.
Li Mu used the Taobao alliance model to directly control the traffic resources of the whole industry in his own hands, and almost domineering forcibly re-created a second brand for Taobao in the minds of users, that is, bsp; so domineering The perfect turn can no longer be called a textbook, because no one in the entire industry can imitate it.
For this achievement of Li Mu, even Boss Ma admires the five-body, and he said frankly in the communication with the core team: "I never dreamed that Li Mu would use such a method to achieve 2, and the efficiency is so high. Gao, now Taobao shopping has become a social trend, and going to Taobao to open a store has become an entrepreneurial boom, Li Mu's move is really wonderful."
A team member in charge of operations said: "The main reason is that Taobao's strength is too strong, and an alliance model such as Taobao Alliance can only be achieved if Taobao takes the lead. This strength."
6 Zhaoxi said curiously: "It seems that Taobao Alliance's advertising expenses have always been subsidized by Taobao? Now the diversion is so fierce, I don't know how long Taobao can resist."
Cai Chongxin, who has been marginalized recently because of his opposition to encouraging sellers to sell counterfeit goods, has basically lost confidence in Letao. In meetings, he basically said very little. Today, when everyone talks about this topic, he is rarely seen. He said, "You don't need to think about it, Li Mu will definitely transfer these costs to the Taobao sellers gradually. In the end, the promotion costs of the Taobao Alliance will definitely be paid by the sellers, and the sellers will definitely not refuse this promotion method. , after all, for sellers, they are pursuing greater interests, and this promotion cost is completely affordable and willing to bear.”
Speaking of this, Cai Chongxin added: "After this, the seller's products will be promoted by the Taobao Alliance, and the seller will bear the promotion cost. By paying a small amount of cost, in exchange for a larger profit, this is also a very important thing for Taobao sellers. A good virtuous circle, if Li Mu wants to, he can even use Taobao Alliance to make money."
6 Zhaoxi took over the conversation and blurted out to him: "When you say using Taobao Alliance to make money, is it buying low and selling high?"
"Yeah." Cai Chongxin said, "Taobao Alliance has almost monopolized the resources of product promotion on the Internet, and can buy at low prices and sell to their sellers at high prices, and even set up a bidding mechanism to let sellers grab promotion resources like an auction. , Generally speaking, if the purchase price of a UV is 10 cents and doubled to sell it to a Taobao seller, the Taobao alliance can create a profit of 1oo%. Doubled it is 2oo%.”
A colleague from the operation port frowned and asked, "Mr. Cai, if the Taobao Alliance's traffic price is so high, can the seller pay for it?"
Cai Chongxin said firmly: "I will definitely pay, and I will definitely rush to pay."
After speaking, Cai Chongxin added: "Think about it, for an online store, no matter what it sells, the lowest unit price per customer is more than ten yuan, and the profit margin is probably at least 2 or 3 yuan. If it is For clothing, the average price per customer is at least 30 yuan in spring and summer, and at least 50 yuan in autumn and winter, with a profit margin of at least 3-4o%.”
"Let's take clothing as an example. Assuming that the average net profit of a single order is ten yuan, and a UV is one dime, then as long as the traffic conversion rate is greater than 1%, the business can be done! Even if the conversion rate is only 2%, Fifty UVs can also bring an order. In this calculation, if you invest five yuan, you can bring in ten yuan in income. Who wouldn't do it? What's more, in the clothing field, the conversion rate is much higher than 2%, with Taobao Alliance With this model, I think the conversion rate is at least 5%.”
The colleague shook his head and said, "Small and medium-sized sellers are all asset-light and low-cost operators. It is difficult to make them pay extra for promotion costs."
Cai Chongxin smiled slightly, and said with a bit of disdain: "Don't think so short-sighted of sellers, do you think they only make profits from selling an order? Don't be stupid, why do companies invest huge amounts of money in advertising? In addition to the profit from customer orders directly converted from advertising, long-term potential profits should also be considered. I ask you, do you only consume once in each clothing store?"
Cai Chongxin made the colleague's face red when he asked, and he immediately understood the meaning of Cai Chongxin's words. Taobao sellers spend money to buy users, not just a one-time transaction, but to settle these users for a long time in the future. Inside, new buying behaviors are continuously generated.
Others also understood immediately, and then they all realized that Cai Chongxin looked at this issue much more far-reaching than others.
At this time, Cai Chongxin said again: "If I were a seller, I would be willing to buy users with no profit or even negative profit. If I pay 10,000 yuan in promotion costs a month and earn 10,000 yuan in gross profit, it seems like I'm working in vain. , but after I don't invest in promotion costs next month, the users I bought back with 10,000 yuan last month may bring me a profit of 5,000 yuan. This 5,000 yuan is a net profit, you guys Think about it, there are so many Taobao sellers, what will happen once everyone finds out the rules? It is inevitable that sellers will compete for traffic. At that time, Taobao will be able to earn a lot of money through these sellers who compete for traffic. Hidden profit! This is a truly healthy development model!"
Cai Chongxin was not careful, and smoothed a way to make money in later generations of Taobao. A large part of Taobao's income in later generations came from the promotion costs paid by sellers, and with the continuous development of society, the continuous popularization of online shopping and the continuous improvement of people's purchasing power With the improvement, the cost of obtaining traffic for Taobao sellers is also getting higher and higher. Taobao operates such a non-capital business, turning all Taobao sellers into hard labor for themselves.
Boss Ma's Taobao.com has done one thing very well: all the online stores that don't spend money on promotion will definitely fail, and all the online stores that were launched in the early stage will definitely collapse if they don't spend money on promotion opportunities. In a word, if you want to make money on Taobao, you have to help Taobao make money first.
6 Zhaoxi probably calculated an account at this time, and then said in surprise: "If you look at it this way, the traffic is really a good deal! Li Mu integrated this traffic at a low price, and then sold it to Taobao sellers at a high price, although the platform is nominally a platform. No seller commission is charged, but by making money from this way of reselling traffic, at least you can make a lot of money!"
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ps: 100,000 apologies are not enough to support Bu Ge's guilt towards everyone. During this period of time, I was on a business trip and lived in a double room. Basically, I was not allowed to be quiet for 24 hours. People were busy doing things and socializing, and they were already busy vomiting blood, and It is really painful and helpless to hide from other people’s writing secretly at all times, and to follow other people’s work and rest time, so that not only the quantity of updates during this period cannot keep up, but the quality is also a bit inadequate. It’s more than ten o’clock tonight. Finally got home, breathed a sigh of relief, and immediately resumed normal updates! Apologize again!