With the vigorous development of the Internet economy, more and more entrepreneurs are looking at online business opportunities, hoping to achieve financial freedom by opening **. Today, we will focus on a specific case: how a ** boss who has been in business for 8 years went from earning millions a year to burning money day by day, and even on the verge of bankruptcy.
Eight years ago, with his keen insight into the market, the owner opened a ** on a well-known e-commerce platform to sell unique handicrafts. In the first few years, business flourished due to unique products and relatively little competition, and it seemed easy to earn more than 1 million a year. However, today, the great changes in the market have put the owner's ** business in a difficult situation, and he has to invest a lot of money in promotion and advertising every day to maintain the visibility and traffic of the store, but it is still difficult to maintain the previous profitability.
The main reasons can be boiled down to the following:
With the popularity of e-commerce, more and more merchants have joined the ranks of the best. In the process, the market's dividend period is gone, and each market segment is facing fierce competition. Products that used to be unique are now available everywhere, and consumers' choices have become more diverse. As a result, it is difficult for even an established store with many years of operating experience to maintain an advantage.
In order to stand out in the fierce market competition, you have to invest a lot of money in search engine optimization (SEO), social marketing, and all kinds of advertising. Especially within e-commerce platforms, bidding rankings, live streaming and other methods are effective, but the cost is high. This is undoubtedly a heavy burden for small and medium-sized enterprises with tight capital chains.
As consumers become more knowledgeable about e-commerce, their shopping Xi are constantly changing. Campaigns have struggled to attract consumers as much as they used to, and people are beginning to pursue higher service quality and a better shopping experience. This requires not only to be competitive, but also to work service and brand building.
Against this backdrop, our store owner also started trying various ways to increase traffic and sales, but the results were not satisfactory. From curating product detail pages, to responding positively to consumer reviews, to trying out new social marketing strategies, each step takes a lot of time and effort, but the benefits are disproportionate.
For those who are running a business or planning to enter the e-commerce industry, this case can't help but make people think: how to gain a foothold in today's volatile market? How do you balance promotion costs and profitability? In the tide of e-commerce, how to sail away instead of being overwhelmed by the tide?