The self-operated procurement and sales model obviously has stronger pricing power
Posted: Mon Dec 23, 2024 5:15 am
However, retailers and e-commerce platforms hope to quickly establish the platform's "low-price mentality" through the absolute low prices brought by discounts and promotions of well-known brands, and then combine relatively low-priced non-well-known brands and white-label products to obtain more lucrative profits. It is not easy to build up an absolutely low price for a well-known brand, especially for an open-model e-commerce platform. Since merchants have their own pricing power, e-commerce platforms cannot force merchants to offer lower prices. Generally speaking, e-commerce platforms generally use traffic incentive policies to allow merchants to offer lower prices. A more radical strategy is to use the "automatic price tracking" system to obtain merchant authorization and then quickly adjust the price of goods based on the prices of competing platforms.
After all, the goods are already in the platform's warehouse, and malaysian phone number the platform is likely to have the final say on what price to set for sale. The self-operated model of JD.com is not about whether it can achieve low prices, but whether it wants to achieve low prices. The explosion of the JD.com procurement and sales live broadcast room also shows that JD.com must use the advantage of the self-operated model with pricing power to achieve low prices again to win consumer recognition.
Well-known brands are naturally aware of this, so it is difficult for platforms to purchase a large number of new products for discount promotions. Most of them are out-of-season and inventory products. These products can still attract a large number of users at absolutely low prices and quickly establish a low-price mentality. Of course, the limitations of self-operation are not only the lack of brand and product richness, but also the limited inventory quantity due to the fact that out-of-season and inventory products are no longer produced. Therefore, in order to maintain the continuous competitiveness of absolute low prices, retail companies and e-commerce platforms will also adopt the strategy of co-branding or customizing products with well-known brands to achieve their goals.
After all, the goods are already in the platform's warehouse, and malaysian phone number the platform is likely to have the final say on what price to set for sale. The self-operated model of JD.com is not about whether it can achieve low prices, but whether it wants to achieve low prices. The explosion of the JD.com procurement and sales live broadcast room also shows that JD.com must use the advantage of the self-operated model with pricing power to achieve low prices again to win consumer recognition.
Well-known brands are naturally aware of this, so it is difficult for platforms to purchase a large number of new products for discount promotions. Most of them are out-of-season and inventory products. These products can still attract a large number of users at absolutely low prices and quickly establish a low-price mentality. Of course, the limitations of self-operation are not only the lack of brand and product richness, but also the limited inventory quantity due to the fact that out-of-season and inventory products are no longer produced. Therefore, in order to maintain the continuous competitiveness of absolute low prices, retail companies and e-commerce platforms will also adopt the strategy of co-branding or customizing products with well-known brands to achieve their goals.