Cross-border e-commerce companies must understand the Internet business model

The so-called Internet thinking, the most radically different in the traditional industry, should be the business model problem. Traditional industries are thinking only about product innovation, and the Internet industry seems to be thinking about business model innovation. Google, for example, was worried about Google’s lack of business in 1999. After Facebook went public, there was still no solid business model. But now, neither Google nor Facebook is worried about revenue. So it doesn’t matter if you can make money directly from the user, only the number of users accumulates to a certain extent, and there is a natural way to make money. So as long as your product is able to attract enough users, you can see the business model. After years of trying to do so, the Internet industry has largely figured out the business model of the Internet. These off-the-shelf business models can be used for our purposes after the product has accumulated enough users. There may be 24 patterns of business models. Of course, more clever companies are still exploring new business models.

The business model of physical goods

In if your product is a kind of goods, the audience can directly hold and use your this item, which is usually in the sense of goods/cargo, then your business model is simple, is basically four patterns:

Own production, own sales: direct production, direct sales to users

Outsourcing production, own sales: outsource the manufacturing process and sell directly to the user

Only production, not sales: responsible for the production, and sell to the distributor

Selling and not producing: as a distributor, or as a trading market for selling goods

E-commerce sites such as amazon and jd.com are the fourth business model.

If your product is not something that your audience can’t directly hold and use, how do you make money? Let’s take a look at the business model of Internet thinking.

Second, advertising,

Since Google started advertising alongside search results, advertising has become the default mode of cash for the Internet industry. In fact, advertising was originally a major business model for print media, and now the Internet industry is stealing the limelight from advertising.

5, display advertising, advertising display general form is text, banner, banner, the banner picture, text links, pop-up window, etc., are usually charge according to display the location and time, also is what we call monthly advertising, package or packages day week. This is the most common pattern of goals.

6, advertising alliance: relative and Internet advertising alliance forms of advertising agency, advertisers on the adsense ads, advertising alliance put advertising push into each site or App. The baidu alliance and Google AdSense are the two largest advertising alliances. Basically, when the traffic is not up to a certain point, it’s a choice to work with an advertising alliance, and it’s only after a certain amount of traffic that you’re going to have a direct relationship with the established advertisers. The advertising league is usually charged for the number of clicks.

7, e-commerce advertising: the most common is ali mama, jingdong, amazon, dangdang all have their own e-commerce advertisement, every guest that year also rely on this sudden scarlet. These ads are usually paid for by sales. A lot of buying websites, especially overseas online shopping’s website, will be able to access all the ads on shopping overseas, and the commission is pretty good.

Soft-text: a soft text is a combination of the content of the AD and the content of the articles, and the user is able to read the articles, both to get the content he wants and to understand the content of the advertisement. Many media sites, or weibo or WeChat, are made from soft text.

9, virtual products in advertising effect: you can also provide users with virtual product, but the price is the user must accept certain advertising, such as watching a period of advertising, a registered user of a web site, download the App.

10, the user behavior data: through the analysis of the user operation mode on your web site or app, can analyze the user’s habits and psychology, which benefits in terms of product design and business planning to make the right decisions. A lot of companies need data from such users, so they can sell that data. Such services are provided by taobao data magic, such as telling you where you are, what products, styles and sizes are most popular with users.

Third, platform trading model

Physical exchange platform: the user trades on your platform and pays for it through your platform. Tmall is the largest physical trading platform, and Tmall’s commission is its main source of revenue.

Service trading platform: users provide and receive services on your platform, and you receive commissions from them through your platform. This is the way the weer platform pig eight quit. Uber’s profit model is also a commission on drivers’ fares.

Deposit money mode: the user keeps the money on your platform, and you can earn the return on the investment by using these deposits. Traditional retailing USES the payment days pressure supplier to make money from deposits. Now this is also used in the Internet industry, which is said to be making money from it. Many Internet finance companies, O2O companies, are also hoping for this model.

Four, charge the user directly

In addition to advertising, another big business model is to charge users directly. Of course. If you charge early, you’re likely to scare away the user. So, there are some clever ways to do it.

A regular paid model: this business model is similar to the monthly plan for mobile phone bills, and pays for a regular service on a regular basis. The fees are relatively small, so users pay a relatively small fee, compared to a one-time fee. QQ members, for example, are paid per month per year, and the current price is about 10Q per month.

Pay-on-demand: when the user is actually purchasing the service, the payment is required. For example, seeing a movie that you want to see in iQIYI, for $5, just look at this one, which is paid for on demand. If you buy a VIP from iQIYI, you can see all the free movies for a period of time, which is a regular paid model. For example, I’m going to find a document that I need most in the road, and download it for $5 (it’s $5), and I can download the file after using WeChat.

16, printer model: printer business model refers to, first at very cheap price to sell to consumers a basic equipment, such as printers, users to use this equipment, must be in a relatively high prices continue to buy other accessories, such as consumables. The razor is also a similar business model, with the price of a knife shelf close to that of the white, and then making money by selling blades. Also, for example, SONY and nintendo sell games at below-cost prices and sell them at a high price. Because Japanese printer company epson first adopted the business model, I called him the printer mode.

The free value-added model

The free value-added business model is to let some users use the product for free, while others buy value-added services and earn back costs and profits through paid-for services. But generally, a free value-added model is generally adopted, and only 0.5 to 1 percent of free users will be converted to paying users.

The number of times you use it for free: this mode is available for free in a certain number of times, and you’ll need to pay for it more than that.

The number of users is free: the number of users in a certain number is free, and if the number of users exceeds that limit, it will be charged. For example, a lot of corporate mail services, if your company has registered a domain name, plan to use the domain name for your corporate email address. Corporate email service providers can ask for five email addresses for free and more than five email addresses to purchase their services.

The ability to limit the availability of free users: free users can only use a handful of features, and if you want to use all of them, you’ll have to pay for them. For example, I now use Evernote, which I’ve been using for days to remind me that I don’t need to upgrade, and I can upload a larger attachment every month, and I can also add a password to my notes. I want both of these functions, but I haven’t figured out if it’s worth the money.

In-app purchases: download and use are free, but can be paid for specific functions in the process. The most common is the game, buying virtual equipment or props. For example, buy a paid tag in WeChat.

The trial period is free: let the user be free to use for the first time, and then pay after the probation period. My current Office, for example, reminds me every day that the free trial period is about to expire and let me activate it. Activation is the activation code for the right version of the activation code. I am worrying about where to find the activation code.

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