Li Mu did not participate in the entire three-day Taobao personal webmaster conference. He only appeared on the first day and launched the Taobao Alliance 2.0 algorithm to the majority of individual webmasters. It is just this new set of algorithms. This made him popular among personal webmasters across the country.
Individual webmasters who have been working alone and focusing on running their personal websites have truly experienced the convenience and advantages of relying on a large platform from Li Mu and Taobao. This has further enhanced the appeal of the Taobao Alliance to individual webmasters.
After the news of the Taobao Alliance 2.0 algorithm was reported by the Internet media, almost all individual webmasters in China who had not yet joined the Taobao Alliance submitted applications to join the Taobao Alliance backstage. Among them were not only famous websites with hundreds of thousands of daily UVs, but also There are also some small sites that have just been established and have almost zero traffic.
A large amount of Internet traffic converges from various websites to Taobao, and the direct impact is the sharp increase in Taobao's data.
Taobao's advertisements are all over the Internet, and all advertisements are directed to products rather than websites, which greatly stimulates users' desire to buy. Therefore, driven by the entire Taobao Alliance and member websites, Taobao's registered users have skyrocketed. The trading volume on the platform is also growing.
The increase in online product display and exposure has directly translated into users' purchasing behavior. As a result, a wave of nationwide online shopping and nationwide Taobao has been launched, and the e-commerce industry has become an instant hit.
In Li Mu's view, the most gratifying achievement is that through this C2C layout, a large number of small and medium-sized sellers have achieved considerable profit returns on Taobao in a short period of time thanks to the promotion of Taobao alliance advertising. This is the most direct The impact is to inspire a large number of netizens and private individuals to register as Taobao sellers.
If an industry wants to truly rise, the surge in employees is the most important symbol. No matter how big the market is, it will be useless if it cannot bear the burden. In Li Mu's view, the best situation for the development of the industry is a surplus of employees, and it must not be based on market demand. Surplus occurs because the market cannot consume enough.
Through the Taobao Alliance, Li Mu suddenly led the entire Internet industry in the direction of e-commerce, which had a great impact on the entire industry.
The Internet industry was amazed by Taobao's perfect turnaround. Originally, all industry insiders believed that Li Mu's Taobao focused almost all its energy on B2C business. Two major promotions pushed the B2C business to a peak. Under such circumstances, Taobao's B2C image has become almost entrenched, and it would be difficult to seize C2C again.
The current Internet industry has not yet entered a vertical development model. Almost all employees are very greedy and hope to develop horizontally as much as possible. The wider the direction, the better. Therefore, what they fear most is being labeled by users, because Once it is given a special label, it means that most of the development direction is suddenly restricted.
Boss Ma originally wanted to seize the opportunity to launch C2C to seize the opportunity of Li Mu. He also felt that Li Mu was accumulating too much force in the direction of B2C and it would be difficult to turn around, so he wanted to seize Li Mu's C2C market by virtue of his characteristics of traveling lightly and being flexible. But who Unexpectedly, Li Mu didn't care what kind of label his platform was given in the minds of users.
Li Mu used the Taobao Alliance model to directly control the traffic resources of the entire industry in his own hands. He almost overbearingly forcibly re-established a second brand for Taobao in the minds of users, which is the C2C brand.
Such a domineering and perfect turn can no longer be called a textbook, because no one in the entire industry can imitate it.
Even Boss Ma was impressed by Li Mu's achievement. He said frankly in his communication with the core team: "I never thought in my wildest dreams that Li Mu would use such a method to exert his efforts in C2C, and it was so efficient. With such a high price, shopping on Taobao has become a social trend, and opening a store on Taobao has become an entrepreneurial craze. This move by Li Mu is really brilliant."
A team member responsible for operations said: "The main reason is that Taobao is too strong. An alliance model like the Taobao Alliance can only be achieved if Taobao takes the lead. No other company can even if they want to find such a way." This strength.”
Lu Zhaoxi said with a curious look on his face: "It seems that Taobao has been subsidizing the advertising costs of Taobao Alliance? Now the diversion is so fierce, I don't know how long Taobao can resist it."
Cai Chongxin, who has been marginalized recently because of his opposition to encouraging sellers to sell fakes, has basically lost confidence in Letao. He rarely speaks at meetings. Today, when everyone talks about this topic, he rarely speaks. He said: "You don't have to think about it. Li Mu will definitely transfer these costs to Taobao sellers. In the end, the Taobao Alliance's promotion costs will definitely have to be paid by the sellers, and the sellers will definitely not refuse this kind of promotion." , after all, for sellers, they are pursuing greater benefits, and this promotion cost is completely affordable and willing to bear.”
Having said this, Cai Chongxin added: "From now on, the seller's products will be promoted by the Taobao Alliance, and the seller will bear the promotion costs himself. By paying a small amount of cost, he can exchange for greater profits. This is also a very good news for Taobao sellers. A good virtuous cycle, if Li Mu is willing, he can even use the Taobao Alliance to make money."
Lu Zhaoxi took over the conversation and asked him: "When you talk about making money with Taobao Alliance, do you mean buying low and selling high?"
"Yes." Cai Chongxin said: "The Taobao Alliance has almost a monopoly on product promotion resources on the Internet. They can buy at low prices and sell to their sellers at high prices. They can even set up a bidding mechanism to allow sellers to grab promotion resources themselves like an auction. Generally speaking, if the purchase price of a UV is 10 cents, if it is doubled and sold to Taobao sellers, the Taobao Alliance can create 100% profit. Doubling it is 200%."
A colleague from the operations department frowned and asked: "Mr. Cai, if the traffic price of Taobao Alliance is so high, can the seller pay the bill?"
Cai Chongxin said categorically: "I will definitely pay the bill, and I will definitely rush to pay the bill."
Speaking, Cai Chongxin added: "Think about it, for an online store, no matter what the selling point, the lowest unit price per customer is more than ten yuan, the profit margin is probably at least 2 or 3 yuan. If it is For clothing, the average unit price per customer in spring and summer is at least over 30 yuan, and in autumn and winter is at least over 50 yuan, with a profit margin of at least 3-40%.”
"Let's take clothing as an example. Assuming that the average net profit per order is ten yuan and a UV is ten cents, then as long as the traffic conversion rate is greater than 1%, this business can be done! Even if the conversion rate is only 2%, Fifty UVs can bring an order. If you calculate it this way, investing five yuan can bring you ten yuan in income. Who wouldn’t do it? What’s more, in the clothing field, the conversion rate is much greater than 2%. With the Taobao Alliance With this model, I think the conversion rate is at least 5%.”
The colleague shook his head and said: "Small and medium-sized sellers are asset-light and low-cost operations. It is probably not easy to make them pay additional promotion costs."
Cai Chongxin smiled slightly and said with a bit of disdain: "Don't think of sellers as being so short-sighted. Do you think they only make a profit from one sale? Don't be stupid. Why do companies invest huge amounts of money in advertising? In addition to the profits from customer orders directly converted from advertising, we must also consider the long-term potential profits. Let me ask you, do you only buy once in every clothing store?"
Cai Chongxin made the colleague blush with just one sentence. He immediately understood the meaning of Cai Chongxin's words. Taobao sellers spend money to buy users. What they buy is not a one-time transaction, but to accumulate these users for a long time in the future. Within, new purchasing behaviors are continuously generated.
Others immediately understood, and then they all realized that Cai Chongxin looked at this issue much more profoundly than others.
At this time, Cai Chongxin said again: "If I were a seller, I would be willing to buy users with no profit or even negative profit. If I pay 10,000 yuan in promotion costs a month and earn 10,000 yuan in gross profit, it seems like I am working in vain. , but after I don’t invest in promotion costs next month, the users I bought back with 10,000 yuan last month may bring me a profit of 5,000 yuan. This 5,000 yuan is a net profit. You guys Think about it, there are so many sellers on Taobao, what will happen once everyone figures out the rules? Competition among sellers for traffic will inevitably become inevitable. By that time, Taobao will definitely be able to earn a lot of money through these sellers competing for traffic. Hidden profits! This is a truly healthy development model!"
Cai Chongxin accidentally smoothed out a way to make money on Taobao in later generations. A large part of Taobao's income comes from the promotion costs paid by sellers. With the continuous development of society, the continuous popularity of online shopping and the continuous improvement of people's purchasing power, With the improvement, the cost for Taobao sellers to obtain traffic is getting higher and higher. Taobao operates such a cost-free business, turning all Taobao sellers into hard laborers working for themselves.
Boss Ma’s Taobao does one thing very well: all online stores that don’t spend money on promotion will definitely fail, and all online stores that develop in the early stages will definitely fail if they don’t spend money on promotion opportunities. In short, in one sentence, if you want to make money on Taobao, you must first help Taobao make money.
Lu Zhaoxi probably made some calculations at this time, and then said in surprise: "If you look at it this way, traffic is really a good deal! Li Mu integrated this traffic at a low price, and then sold it to Taobao sellers at a high price. Although in name it is a platform No seller commission is charged, but if you make money by reselling traffic in this way, you can at least make a lot of money!”
…
PS: A hundred thousand apologies are not enough to support Bu Ge’s inner guilt for everyone. During this time, I was on a business trip and lived in a double room. I was basically not allowed to be quiet for 24 hours. I was out doing things and socializing, and I was already busy vomiting blood. It is really painful and helpless to have to hide from others and write secretly all the time, and to follow other people's schedules. Not only the quantity of updates during this period cannot keep up, but the quality is also a bit lacking. It's past ten o'clock tonight Finally arriving home, I breathed a sigh of relief and immediately resumed normal updates! Apologize again!
(End of chapter)