How "expensive" is e-commerce traffic?
Update time:2019-05-28         Source:(this article is for contribution, only represents the author's independent point of view)

Today's flow fee, just like the entrance fee in the era of real business, has become a necessary cost for merchants to have high-quality channel resources, and even some merchants joke that 'opening an online store is more expensive than the physical store'. More and more fierce traffic competition makes it difficult for small and medium-sized sellers to maintain, some old sellers have chosen offline, live streaming, short video and other flow diversion, even send iPhone is more cost-effective than buy traffic. 'There is no blue sea.' When it comes to how expensive the traffic on e-commerce platforms is, now there is no virgin land for the traffic price on Tmall and taobao, which is full of rising competition. 'For some large clothing sellers, it's not unusual to spend 300,000 yuan a month.' Dongguan is a place where apparel manufacturers cluster, and e-commerce operators are especially concentrated. 'It is so expensive that some brands would rather send iphones to attract customers than continue to spend money on the platform.' Traffic promotion costs will be generally controlled in the total amount of 10%-15% range. By analogy, the transaction flow of an e-commerce seller with a monthly investment of 300,000 yuan should be more than 3 million yuan. 'Especially during prime time like singles day, the price of paid traffic can be as high as 30 yuan per click.' 'But depending on what kind of traffic, the daily price of popular categories such as men's and women's wear, children's wear and bags will also be 5 yuan per click.' A Beijing dance called 'the red shoes' supplies store managers said: 'because we're offline for 20 years, also has online store opened in 78, Tmall flagship store has thousands of fans, so the current pay traffic input is not much, probably in a few hundred yuan a day, but do have a lot of big stores in this investment is ten thousand yuan of above.' An unnamed seller said the seller according to the different scale, investment proportion is the pyramid structure of traffic: 'in most category contains such as clothing shoes and hats, platform of the top ten business flow into account for about 10% of its sales - 20%, ranked 10-100 accounted for about 20% of sales - 40%, hundreds of outside to squeeze in, often spending more than 40% of the sales as the traffic cost.' 'Promotion costs should be looked at in stages. The new product period is generally controlled at 15%-20% of the sales volume, because we need to promote the flow; Hot selling period is generally controlled at 10%-15% to maintain stable sales; Recessions are largely ungeneralized.' Said the dongguan e-commerce marketing director. '10-40 percent is the average traffic cost in the e-commerce industry. That is to say, the price of a piece of clothing sold by a merchant is 1,000 yuan, and maybe 400 yuan is the advertising cost to the platform.' undefinedOn taobao and Tmall platforms, the main way to get traffic is 'taobao/Tmall through train', which is a pay-per-click marketing tool provided by alibaba for sellers. Sellers can bid on the keywords searched by buyers to get more exposure. Sellers can also be on the through train to home page, category home page and other directional position bidding rankings. 'But it's not as if the high bidder is always at the top of the list.' Train is a complete and mature system of traffic for the final display rankings to 'bid' multiplied by a coefficient results shall prevail, and this is called 'quality score' coefficient of formation is very complex, including creative quality, the image quality of the goods, buy keywords and commodities relevance, express conversion rate, rate, etc., 'but there are always some sellers blindly push up keyword bidding, not only their money in vain, can also lead to the rising value of their overall flow'. According to alibaba's 2018 China youth creativity report, more than 2 million post-90s entrepreneurs across the country have started businesses on taobao, growing by more than 700,000 in the past year alone. In other words, the influx of new forces is making the flow of competition is becoming more and more intense, the price will be higher and higher. Starting in 2011, the e-commerce operator of xiaozhu banner, a children's clothing brand with sales of nearly 300 million yuan in 2017, said that the traffic in the recent year was much less than in the past. 'Traffic is only going to get more and more expensive,' he said. 'many operators now believe that the cost of opening an online store is higher than that of a physical store.' In the current environment, rational bidding is an operational method. 'The location and keyword ranking are not the only factors that affect the sales of the store.' People in the e-commerce industry generally believe that the higher the heat of keywords, the greater the flow, the greater the competition, the need to spend more money, small and medium-sized sellers can not afford. Alibaba officials offer a list of potential terms for the through train, such as web celebrity snacks, nuts, specialty products, biscuits, puffed and puffed foods, with a series of long tail words, which are often sold at lower prices and are less competitive.8 c5521e79d9b219c64f429bd95ba2dIn addition, reasonable use of off-site traffic is also one of the ways to reduce the cost of traffic purchase. 'A group of professional taobao guest in providing the seller with inbound drainage services, via live, build group to help sellers, they provide the service price is in commonly 20% - 40% of the sales, but since it is based on volume pricing, so if the seller's profit margin is higher than the cost of pay taobao guest, the seller is very welcome this way.' Outside the station flow is not only ali platform small and medium-sized sellers desire, but also by the well-known electronic goods brand welcome, such as millet, netease strict selection also constantly through offline promotion, live broadcast and other ways to obtain relatively low traffic. However, many emerging traffic platforms are not willing to accept the status quo, and are considering becoming e-commerce platforms themselves. For example, in September 2017, toutiao toutiao launched its 'trust purchase' business, which involves in the field of self-run e-commerce. 'It's also likely to further increase the price of off-site traffic.' The 10th 'double 11' is coming. Within ten years, shopaholic generation and brand merchants have grown up. The development of China's e-commerce field has already gone beyond e-commerce itself and radiated into many fields such as retail, manufacturing, foreign trade, logistics, supply chain and marketing. Just like offline stores at the beginning, e-commerce platforms also increasingly hold more power of speech in channels. As a retail channel, today's e-commerce platform actually provides consumers with the same 'shelves' as traditional shopping malls. Although the Internet is broad and infinite, the number of effective shelves is still limited. E-commerce platforms also need to consider how to allocate limited traffic. And flow price has become the most core switch in the whole ecology of e-commerce platform. Switch in whose hands, who has the most powerful voice in the whole ecology. This kind of strong force makes merchants have almost no bargaining chips at the negotiation table, and at the same time ensures that the platform continuously cashed in through traffic. In such an environment, many entrepreneurs are unable to start from scratch, and many people are discouraged by the early traffic investment. It is no longer a very low threshold to enter the e-commerce industry.

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