What is a good e-commerce model, a long-lasting model

When discussing the sustainability of e-commerce models, Brother Dong believes that enduring models often have corresponding traditional offline versions, and purely innovative models are mostly unreliable. In fact, there are no brand new businesses emerging; it's just that the presentation methods differ.

Especially for those companies that have traffic but lack effective monetization scenarios, finding a profit model is particularly urgent. One cannot simply rely on the assumption that "having many users will naturally lead to future profits." For e-commerce businesses that can be profitable, it is even more foolish to abandon charging for growth and switch to a free model. Such decision-making errors are not uncommon in many startups.

So, how do startups achieve sustained growth? Capital is key.

The source of capital can be external or internal, but relying on internally generated funds is more important.

In terms of using capital, the most ideal situation is that investment can bring returns, followed by investment that can accomplish great things while reducing losses, that is, using funds efficiently.

The anecdote "Qi Huo Ke Ju" tells the story of Lü Buwei's strategy and execution in transforming an abandoned grandson of the Qin king into a piece of valuable chess, revealing the complex operations behind a large-scale merger.

In business models, monopolistic businesses are usually the most profitable, whether it's technology patents, resources, administrative policies, or natural market competition forming monopolies. However, China's e-commerce industry is booming, but due to fierce competition, profit margins are usually very low. Therefore, even large companies accustomed to quick profits have difficulty succeeding in the e-commerce field.

For e-commerce sellers, building a brand is always a good choice, especially in China's era of rapid consumer upgrading. Choosing the right direction is more important than working hard.

Doing business is similar to dealing with the world. The beliefs of Indonesian tycoon Zeng Guokui include integrity and humility, diligence and fearlessness, and professionalism and deep strategic planning. These principles are also applicable to business and life.

On the issue of career versus business, I believe that a career is not only about pursuing industry changes or going public, but business generally refers to profitable operations. For entrepreneurs, survival and profit are primary tasks, while ideals of changing industries are important but require a pragmatic attitude.

In the relationship between knowledge and imagination, traditional e-commerce models have reached a dead end. Startups need to open up their imagination and seek breakthroughs through cross-industry innovation. Imagination is more important than knowledge itself, but this does not mean giving up learning. Only by understanding more knowledge can one enrich their imagination.

Staying away from price wars and breaking free from inner turmoil to create value is the way for e-commerce companies to survive. Understanding price wars as a necessary cost to educate the market and change consumer behavior habits seems natural. However, for enterprises pursuing long-term and large-scale operations, price wars should be avoided. The essence of inner turmoil is inefficiency; only by creating valuable products can one break free from inner turmoil.

Facing economic winter, e-commerce businesses should maintain reasonable profit margins and sufficient cash reserves, focus on innovative R&D to prepare for the recovery, and owners and executives should lead by example to guide the team through challenges together.

Whether online or offline, businesses that have traffic hold value. The redistribution of traffic will determine which businesses will have more commercial potential in the future.