E-Business Christmas Promotion: The Commercial Interest Chain Behind Profit Making

Home before Christmas

"Double dawn" promotion: the Winter Carnival of e-commerce

Since December, the domestic e-commerce market has been fighting again. Apart from Dangdang, Jingdong, and excellence, respectively, 40 million to 100 million promotions have been launched. Almost all Internet business platforms have launched big sales promotion.

Compared with the Dragon Boat Festival and National Day holiday, the sales promotion period is longer and the sales promotion is more intense. It is the most important selling season in a year. It usually ends from mid 12 to the end of the Spring Festival and lasts about 1 to 1.5 months.

"National Day is only 7 days, users prefer to go to the physical store to spend". Zuo Yingjie, the new seven day appliance network CEO, said that during the national day, the business of selling the line was difficult, but the year-end promotion was continuous. The whole December and January were very hot every day, so it was more suitable for e-commerce enterprises.

Killer sales promotion and inventory cleanup

Although all e-commerce websites will play the gimmick of "letting consumers and affordable users", behind the low price is the golden opportunity for enterprises to expand their customers, boost sales and sell inventory.

"We take the form of coupons and discounts in the form of promotion during Christmas season," Lu Ming, founder of good luck, said that the goal of this platform's promotion is very clear. On the one hand, it intends to expand new users by relying on low prices and expand market share; on the other hand, it needs to increase the stickiness of the old customers by relying on coupons.

At present, the website not only has low price promotion on its own platform, but also expands the scope of influence by way of group buying vouchers and micro-blog promotion.

Some enterprises pay more attention to sales volume. "Year-end impulse is very important". It is revealed that the average annual sales volume of domestic merchants' annual sales is 20%-30%.

"Household appliances accounted for a larger proportion of pre consumption, and we accounted for 40% of the total fiscal year in December and January," Zuo Yingjie said.

"There is also a very important point, that is selling," Yintai CEO Liao Bin told reporters that the end of the year is an important stage for businesses to clear goods and adjust their inventory ratio. "The risk of clothing retailing is bigger than other categories, and the key is in the sale rate of an enterprise". This index can directly affect the inventory pressure and cash flow of enterprises, and the promotion means of clearing goods is very simple, it is simply discounts and buy gifts.

"Each enterprise has different strategic objectives in different periods", Lu Ming said that the emphasis of each promotion will be different. But in the final analysis, all retailers are in line with the basic market rules, so they will plan according to the above three objectives and carry out strict data analysis and cost accounting.

"During the promotion period, the management of data statistics and performance appraisal is very strict and meticulous", but Liao Bin said that the content of this area belongs to the company's commercial secrets, and can not be announced.

Cost accounting: pfer to supplier

"The gross margin of home appliance retail sales is only about 6%, and retailers can not afford too big discount space," but Zuo Yingjie said that e-commerce enterprises are not fully losing money when they sell at a low price. Many times, suppliers are backing up behind them.

Zuo Yingjie introduced that, in addition to the long-term overstock need to share the promotional cost with suppliers, the cost of promotion can be pferred to suppliers in most cases. "We do sales to expand sales, and they reduce prices to provide space", so that both sides can make profits.

In addition, for some low profit "Chong Shan" products, many businesses will use "matching sales" to promote sales.

"The average user will be attracted to the platform with the attractive price, but when it comes to a single purchase, it will buy multiple products at the same time." this way, the promotion cost will be diluted and a big way to avoid losses.

Of course, B2C also needs to invest in external promotion, purchase and return.

"We have increased the advertising on the website this time," said Peng Liang, marketing director of the website. "The advertising amount during the website promotion is equivalent to 1 to 1.5 months' expenditure."

"In the long run, all B2C are throwing money, but most of the funds are used for hardware construction such as marketing and warehousing and distribution. No sellers are willing to lose money in the sale of goods," Liao Bin said.