David He Notes

Products could be categorized to Common Products, Differentiated Products and Individual Products. As a result, the payoff models of E-commerce could be carefully applied according to the products type.

Common Products
Good Quality & Inexpensive could be considered as a proper strategy. You need to enlarge its producing scale and lower the cost.

Here is an example, alibaba group. Alibaba aims to get through its chains of supply relying on internet. Each element of the business, including companies, shops on taobao, consumers, organizes a large and competitive business chain.

Differentiated Products
Out of the war of prices, Differentiated Products make special value for certain customers. Therefor, e-commerce takes a different way of profit rather than making business large. This way is specializing your business for certain customers. For example, extra value could help you target your customers rapidly.

Individual Products
Individual Products pay much attention on the user experience and the shopping process trying to please every customer.

The information, business, cash on the Internet is based on bit (information unit). The traces of internet users could be tracked and analyzed. As a result, one-to-one service could be applied to business through technical support. It make another payoff model of e-commerce.

Tags: E-commerce, payoff, payoff model, products

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