Businesses or products with low margins but making money often rely on high sales or high turnover rates to be profitable. This type of model is found in a variety of industries, and here are some examples:
Supermarkets and convenience stores: These retail businesses are often not highly profitable, but they are profitable by selling daily necessities such as food, beverages, and household goods in large quantities.
Fast-moving consumer goods (FMCG): such as beverages, snacks, shampoos, etc., where the margins of individual products are low, but through large-scale production and sales, the overall profitability is strong.
*Advertising: Revenue per click or impression can be very low, but due to the huge user base of the online platform, it is possible to accumulate considerable revenue overall.
Low-cost carriers: By providing basic air services with no additional services, the profit per seat is lower, but through efficient operations and full capacity, it is profitable.
Mobile games with in-app purchases: Many free-to-play games don't charge for their own money, but make money through small transactions (such as in-game currency, special items, or feature unlocks), and while each transaction is not very profitable, small payments from a large number of users can add up to huge revenue.
Wholesale trade: By buying and selling goods in large quantities, the profit per item is low, but the total sales are large, so the total profit is also relatively substantial.
These examples show that even when the margins of a single transaction are low, significant profitability can still be achieved through economies of scale, high turnover, or large user engagement.