Flash purchase mode has become the dominant squeeze traditional electricity supplier model

traditional electricity supplier growth is fast but profit problem

According to the

research firm eMarketer data show that in 2014 the worldwide e-commerce sales will increase by 20.1%, reaching the level of $1 trillion and 500 billion, and is expected to reach $2 trillion and 350 billion in 2017.

Amazon and Jingdong’s business model and sales of goods categories are very similar, their website sales of more than $10 million, and are in the growth phase. But the problems of the two sites are not growth, but infrastructure and high spending. These two sites have to maintain high inventory, and also spend a lot of money to deal with a large number of orders every day in the operating center.

it is understood that the Jingdong need to transport the proprietary 70% orders, but also to maintain 1620 delivery points and 214 points, while Amazon is using outsourcing transportation company. Based on these circumstances, the current operating margin Amason and Jingdong are very low, only reached 1% of the, Jingdong and even -5.6%.

flash purchase mode to solve the profit problem

and the sale of many categories and has a large inventory of traditional electricity supplier model is different, flash purchase electricity supplier in a period of time to focus on selling a commodity. Flash purchase electricity supplier to purchase a large number of goods at low prices, and then sell out at a low price, and then shipped in large quantities, this sales model will not be on the goods on the money, but also to obtain higher profits.

we can see that the use of flash purchase mode of Zulily and vip.com’s profitability is much better than those large electricity supplier. After the removal of those infrastructure costs, the price advantage and low inventory flash purchase mode allows flash purchase electricity supplier profits. However, consumers choose to buy electricity supplier flash reasons, mainly because of low prices.

in the end the purchase value of electricity supplier is not worth investing it?

flash purchase business model exactly how much profit is not a number a year, but it is a new model of electronic commerce industry. But from the profitability of Zulily and vip.com, this model is worthy of long-term investment.

The difference between the two

can be traced to the differences between American electricity supplier and Chinese electricity supplier, eMarketer survey, U.S. electricity sales are expected to grow 11.8% this year, and Chinese can increase 63.8%. The industry believes that China’s e-commerce in the next few years will maintain a growth rate of more than 30%, while the United States wants to maintain the growth of the figure is more difficult two.

is based on these expectations, vip.com’s growth will be even more rapid, although its market value has increased by 3200% since vip.com IPO in 2012, but its future development is certainly far more than these.

< >

Leave a Reply

Your email address will not be published. Required fields are marked *