When 1 yuan can be free shipping, why do e-commerce companies have to charge for shipping?

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When 1 yuan can be free shipping, why do e-commerce companies have to charge for shipping?

Switzerland Phone NumberFor the sellers on the platform, they hope to obtain more sales and higher profits to continue operating. So how to achieve this can be done from multiple dimensions: small profits but quick turnover, improving product profit margins, increasing customer unit prices, etc. In addition, transferring consumers to private domain traffic can also facilitate the next conversion of consumers operation. Now, let’s analyze and analyze specifically, what is the idea of ​​the seller:

1. Small profits but quick turnover

Based on the platform rules. Many sellers need to increase exposure through a large number of advertisements or promotional activities, so that more people can see them. Because of the increase in exposure, it can bring about an increase in sales.

However, the cost of advertising on mature e-commerce platforms is very high, so many sellers tend Switzerland Phone Number to increase their exposure by making profits. Because the order volume is large, the seller can cooperate with the logistics company. In the case of a large volume, the express fee can be as low as a few cents. The seemingly impossible 9.9 yuan package, there is still room for profit, and it is the route of small profits but quick turnover.

2. Drain traffic to the store

If you want to increase sales on the platform, you must have exposure and let more people see it, and there are two methods: a large number of advertisements and preferential activities.

However, the cost of advertising on a mature e-commerce platform is very high. And many sellers tend to do preferential activities to attract traffic to the store. This is the case with our common 1 yuan free shipping and 9.9 yuan free shipping.

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Secondly, the store will give consumers the benefit of low-priced products, and turn the advertising fee into an actual preferential activity. Once the sales of the product increase, the search ranking of the product will be higher. In this way, merchants can use sales to suppress competitors in a certain dimension, so as to obtain more traffic.

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