What are the profit models of e-commerce websites?

1. Online advertising. This is the most important and common online profit model. The profit models of domestic relatively good portals (such as NetEase, Sina, Sohu, etc.), including industry portals, and even most personal websites are like this, relying on other people's advertisements. Survive. Emerging online short video websites use the waiting time before and after the video is loaded to play online advertisements from advertisers (such as YouTube abroad, Domestic Tudou, Youku, etc.).

2. Download of ringtones and multimedia messages, sending of text messages and other value-added forms of telecommunications. One of the craziest Internet profit models. Almost every commercial website and personal website that ranks among the top 100,000 in the world is obtaining financial returns through SP. Currently, SP is restricted by operators such as China Mobile, and the profitability rate has dropped somewhat. The market value of listed companies listed under the similar model has shrunk. Typical representatives include air network, 3G portal network, etc.

3. Product trading websites, such as selling other people’s products through websites (C2C and C2B models), such as Taobao and Joyo.com, or selling one’s own products through websites and building self-built commodity sales websites (belonging to B2C type). The profit methods of this model include earning the purchase and sale price difference, earning the express delivery price difference, obtaining rebates on product sales, extending the account period, and playing with cash flow, etc.

Extended information:

Existing problems

1. Capital investment

my country’s B2C e-commerce has increasingly become a very money-consuming industry, continued investment in capital is crucial. Several major B2C websites, including Amazon, JD.com, and Taobao, have successively invested heavily in building logistics systems.

2. Long-term losses

my country's B2C companies have always been in a vicious circle of "financing, burning money, expanding scale, and refinancing". When funding channels encounter overdrafts, listing seems to have become a major issue for the entire e-commerce industry. The last straw for the business industry.

my country E-commerce Research Center, the amount of financing in the e-commerce field has exceeded 2 billion US dollars, but most enterprises are still in a state of loss. Many e-commerce companies focus on "losing money and gaining scale": low-price marketing, price War, aggressively expanding product categories, advertising to earn traffic, etc.