A study on the profit model of online shopping website

the last time we analyzed a daily single product shopping site creative articles, today we continue to analyze other aspects of this model. American Marketing Master PHILPS · Kotler’s marketing theory that niche market exists in the market segments, the subdivision is used to position the product, can be tangible products, intangible products can also be. Easy to understand, a few examples: tangible products is our common mobile phone, computer, etc. the cake can be tangible and intangible products; of course is invisible, untouchable, such as travel routes, insurance, knowledge, music etc.. No matter what kind of product, whether it is production or sales, the need for product positioning, but usually in the product design and development stage has been a clear positioning of the product. More precisely, that is, when the product in the laboratory, it has been positioned to use the product gender, age, hobbies, personality characteristics, education, income and other aspects of the crowd. Our website is no exception, because the site itself is the product. Then we will discuss a new problem: our website is to do what? And our profits come from

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last time we analyzed Groupon and other sites of creativity, this time we analyze his position:

Groupon is to serve as the main products, many of which are intangible products (we all know intangible products, profit margins) so why are they to serve as the main product of site profit model?

first, a wide range of audience. Service products can be said that everyone is a potential consumer, such as restaurants, beauty, fitness, film, etc., these services are the basic consumer, but also in line with the consumption habits of Internet users.

second, simple operation. These service products, relatively simple to operate, saves the production or inventory, eliminating the logistics of a large amount of work, more important is that consumers can evaluate a mobile phone short message to the consumer to enjoy the discount, save a lot of trouble; the site also omitted many traditional links, 1, 2 people can operate. But the operation is not complicated.

third, profits can be guaranteed. Service product pricing is generally pricing according to psychological pricing, the pricing method, pricing is too high, the discount is relatively high, businesses to provide to the site is generally 70 percent off, 60 percent off, 80 percent off, or even 90 percent off, which can ensure website profit space.

fourth, settlement simple, easy accounting. With the business on a good discount, the day after the group purchase about money to businesses, so the user can rely on coupons until the business consumer, no funds risk, accounting super simple, no academic requirements can get operation,

fifth, easy to find businesses. As I said earlier, these products generally have higher profits, which are generally suitable for the local cities, because consumers are in the local cities, and the