Let’s make this short: B2C E-commerce greatly shortens the path for consumers to make consumption decisions, it’s the core of the whole industry, also yours.
If you do your own e-commerce business, you need to know there’s a good chance that you are in B2C Ecommerce model. To make your business better, make sure you know all roles in this industry and the way they make their profit.
Just take these essential information, it’s a free meal:
B2C E-commerce Intelligence For Dropshippers
| Roles |
How It Works |
Profitability (fomula) |
| Product Sellers |
Businesses showcase their offerings on virtual shelves and consumers purchase them |
Profit Margin = (Net Sales – Cost of Sales) / Net Sales (AVG 5%~10%) |
Service
Providers |
Businesses pay a recurring fee for access to services to increase efficiency |
Profit = Number of Users * (AVG Subscription Price – Variable Cost)- Fixed Cost Tips: Variable Cost: cloud platform, cloud facility operation and maintenance cost, etc.
Fixed Cost: customer acquisition cost, customer retention cost, etc. |
| Advertising Providers |
Platforms always make traffic paid |
Profit = Charge by Impression Revenue + Charge by Click Revenue + Charge by Convertion Revenue – Labor Cost – Technical Cost |
| Payment Provider |
Charging transaction fees, processing fees, or monthly fees. High frequency of transactions but small amounts relatively |
Roughly Profit= ∑(1, n) Transaction Amount * Transaction Rate – Labor Cost – Technical CostTips: 1. Transaction Rate: Debit cards: 0.25% to 0.6%. Credit cards: 0.3% to 0.9%. Commercial credit cards: 1.5% to 2.5%.
2. Σ(1,n)Transaction Amount = T1 * Transaction Rate+T2 * Transaction Rate+…+Tn * Transaction Rate T1= Transaction Amount NO.1 Tn = Transaction Amount NO.n |
| E-commerce Platform |
Cut a percentage of each sale or a flat fee per transaction |
(Take Amazon For Example)
Profit = 8%~15% * GMV + 0.99 * Quantity of Items – Labor Cost – Technical CostTips: 1. 8%~15% for platform cut, rates vary for different categories.
2. $0.99 fee per item (for “individual” sellers only) |
| Logistics providers |
Charge fees for shipping goods from one location to another, minimize costs and reduce lead times to increase profits |
Profit = Total Shipping Revenue – Labor Cost – Equipment CostTips: Equipment Cost includes all expenses on land vehicle, aircraft carrier, sea vehicle. |
| Warehouse service |
Charging a fee for storage, picking, packing |
Profit = Total Storage Fee + Total Packing Fee – Labor Cost – Space Expenses – Material Cost |
It is true that the businesses of each of the players mentioned in the table have long been interconnected, but the basic profit components given in the table can help you understand them better.
|
|
Get Started Now to Grow Your Online Business with the Best AliExpress Dropshipping Tool – DSers!
TRY IT FREE NOW
|
The next article will examine the roles of B2B, don’t forget to subscribe. In this column, no empty talk, only essential information.
ecommerce indonesia
web site ecommerce
ecommerce adalah, ecommerce icon, ecommerce icons
, ecommerce, perbedaan marketplace dan ecommerce, ecommerce terbesar di indonesia, free ecommerce template bootstrap
#Works #Money
