Li Mu did not participate in the three-day Taobao personal webmaster conference. He only appeared on the first day of the opening and launched the Taobao Alliance's 2.o algorithm to the majority of individual webmasters. Just this new algorithm made him sought after by individual webmasters across the country.

The individual webmasters who have been fighting alone and working on their personal websites have truly experienced the convenience and superiority of relying on large platforms from Li Mu and Taobao, which further enhances the attractiveness of Taobao Alliance to personal webmasters.

After the news of Taobao Alliance 2.o algorithm was reported by the Internet media, almost all individual webmasters in China who have not yet joined the Taobao Alliance submitted their application for joining in the backend of Taobao Alliance. Among them, there are not only famous sites with hundreds of thousands of daily uvs, but also some small sites with just registered and almost zero traffic.

A large amount of Internet traffic gathers from various websites to Taobao, and the direct impact is the sharp increase in Taobao data.

Taobao’s advertising is spread throughout the network, and all advertisements directly point 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 increased rapidly and the platform transaction volume has also continued to grow.

The increase in online product display and exposure directly turned into user purchasing behavior. As a result, a wave of online shopping for all people and Taobao was launched, and the e-commerce industry was instantly popular.

Li Muxi's achievements were that through this 2 layout, there were a large number of small and medium-sized sellers, who had achieved considerable profit returns on Taobao through the promotion of Taobao Alliance advertising in a short period of time. The most direct impact was that it stimulated a large number of netizens and private self-employed individuals registered as Taobao sellers.

If an industry wants to truly rise, the surge in practitioners is the most important symbol. No matter how big the market is, it is useless to not carry it. In Li Mu's view, the best situation for industry development is that there is overeat of employees, and it must not be that market demand is caused by market consumption.

With the Taobao Alliance, Li Mu immediately brought the entire Internet industry to the direction of e-commerce, which had a great impact on the entire industry.

The Internet industry was amazed at Taobao's perfect turn. Originally, all industry insiders believed that Li Mu's Taobao almost focused all his energy on the b2 business, and the two major promotions pushed the b2 business to a peak. In this case, the image of Taobao's b2 is almost deeply rooted, and I want to catch 2bsp again. The current Internet industry has not yet entered the vertical vertical exhibition mode. Almost all practitioners are very greedy and hope to be able to develop horizontally as much as possible. The wider the direction it occupies, the better. So what I fear most is to be labeled by users, because once it is labeled with a special label, it means that most of the exhibition direction is suddenly imprisoned.

Boss Ma wanted to take advantage of the opportunity 2 to seize Li Mu's initiative, but he also felt that Li Mu was too strong in the direction of b2 and it was difficult to turn around, so he wanted to seize the market of Li Mu 2 with his lightweight and flexible mobility. However, no one expected that Li Mu didn't care what kind of label his platform had been labeled 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, and forced himself to make the second mark on Taobao in the minds of users, that is, bsp; 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 admired Li Mu's achievements. He said frankly in his communication with the core team: "I never dreamed that Li Mu would use this method to work hard on two, and the efficiency is so high. Now Taobao shopping has become a social atmosphere, and opening a store on Taobao has become a entrepreneurship boom. Li Mu's move is really wonderful."

A team member in charge of operations said: "The main reason is that Taobao is too strong. Only Taobao can do the alliance model like Taobao Alliance. Even if any other company wants to get such a solution, it will not have the strength."

6 Zhaoxi said with a curious look: "It seems that Taobao has always been subsidized by the advertising costs of Taobao Alliance? Now it is so fierce that I don't know how long Taobao can last."

Cai Chongxin, who has been marginalized recently because he opposed encouraging sellers to sell fakes, has basically lost confidence in Letao. At the meeting, he basically said little. Today, when everyone talked about this topic, he rarely said: "Don't think about it, Li Mu will definitely transfer these costs to Taobao sellers. In the end, the promotion costs of Taobao Alliance will definitely be made to buy the order, and the seller will definitely not refuse this promotion method. After all, for sellers, they pursue greater benefits, and this promotion cost is completely affordable and willing to bear it."

Speaking of this, Cai Chongxin said: "From this time, the seller's products will be promoted by Taobao Alliance, and the seller will bear the promotion costs themselves. By paying a small amount of costs in exchange for greater profits, this is also a very good virtuous cycle for Taobao sellers. If Li Mu is willing, he can even use Taobao Alliance to make money."

6 Zhaoxi took over the conversation and blurted out: "What you said is to make money with Taobao Alliance, is it a low buy and a high sell?"

"Yes." Cai Chongxin said: "Taobao Alliance almost monopolizes the product promotion resources on the Internet. It can be bought at low prices and sold to their sellers at high prices, and even set up a bidding mechanism to allow sellers to grab promotion resources by themselves like auctions. Generally speaking, if the purchase price of a UV is one cent and sold to Taobao sellers twice, Taobao Alliance can create a profit of 1oo%. Double the price is 2oo%. "

A colleague from the operation office frowned and asked, "Mr. Cai, if the traffic price of Taobao Alliance is so high, can the seller pay the bill?"

Cai Chongxin said firmly: "I will definitely pay the bill, and I will definitely rush to pay the bill."

As he said that, Cai Chongxin added: "Think about it, for an online store, no matter what the selling point is, the minimum average customer price is more than ten yuan. The profit margin is probably at least 2 or 3 yuan. If it is clothing, the average customer price season will exceed at least 30 yuan in spring and summer, and the average autumn and winter season will exceed at least 50 yuan, and the profit margin will be at least 3-4o%.

"Let's take clothing as an example. Assuming that the average net profit of a single order is ten yuan and one UV is one cent, then as long as the traffic conversion rate is greater than 1%, the business can be done! Even if there is only a conversion rate of 2%, fifty UVs can bring an order. If you calculate this, investing five yuan can bring a ten yuan income. Who doesn't do it? What's more, in the clothing field, the conversion rate is much greater than 2%. With the Taobao Alliance model, I think the conversion rate is at least 5%.

The colleague shook his head and said, "Small and medium-sized sellers are all light assets and operate at low cost. It is probably difficult to make them pay additional promotion costs."

Cai Chongxin smiled slightly and said with a little disdain: "Don't think sellers are so short-sighted. Do you think that selling one order is just the profit of selling one order? Don't be stupid. Why do companies invest huge amounts of money to advertise? In addition to the customer order profits directly converted from advertisements, they also need to consider long-term potential profits. I ask you, do you only consume once in every clothing store?"

Cai Chongxin made the colleague's face flushed in his question. He suddenly understood the meaning of Cai Chongxin's words. Taobao sellers spend money to buy users, but instead of buying them in one transaction, they will accumulate these users and continue to produce new purchasing behaviors for a long time in the future.

The others immediately understood and realized that Cai Chongxin saw much deeper on this issue than others.

At this time, Cai Chongxin said again: "If I were a seller, I would be willing to buy users in a way that was no profit or even negative profit. If I paid 10,000 yuan in promotion costs a month and earned 10,000 yuan in gross profit, it seems to be a waste of work. However, after I did not invest the promotion costs next month, the users I bought for 10,000 yuan last month may also bring me a profit of 5,000 yuan. These 5,000 yuan is a net profit. Think about it, there are so many Taobao sellers, what will happen after everyone figures out the rules? It will inevitably become inevitable for sellers to compete for traffic. By that time, Taobao will definitely be able to earn a lot of hidden profits through these sellers who compete for traffic! This is a truly healthy exhibition model!"

Cai Chongxin accidentally straightened out a way to make money in Taobao in later generations. A large part of the income from Taobao in later generations comes from the promotion costs paid by sellers. Moreover, with the continuous development of society, the continuous popularization of online shopping and the continuous improvement of people's purchasing power, the cost of Taobao sellers to obtain traffic is getting higher and higher. Taobao operates such a non-basic transaction, turning all Taobao sellers into hard labor for themselves.

Boss Ma’s Taobao website has something very good: all online stores that do not spend money to promote must not be able to get up, and all online stores that were exhibited in the early stage will definitely fall down if they do not spend money to promote. In short, it’s just a matter of saying that if you want to make money on Taobao, you have to help Taobao make money first.

6 Zhaoxi calculated the calculation at this time, and then said in surprise: "If you look at it this way, traffic is really a good deal! Li Mu integrated these traffic at a low price and then sold it to Taobao sellers at a high price. Although the platform nominally does not charge sellers' commissions, making money by reselling traffic can at least make a lot of money!"

...

ps: 100,000 sorrys are not enough to support Buge's guilt for everyone. During this period of time, I was on a business trip and stayed in a double room. I basically had to be quiet for twenty-four hours. When I was working and socializing in other places, I was so busy that I vomited blood. I also had to avoid others' secret writing and follow other people's schedules. It was really painful and helpless. The updates during this period were not only unable to keep up with the quantity, but also a little inappropriate. I finally got home at around 10 o'clock tonight. I breathed a sigh of relief and immediately resumed normal updates! Apologize again!
Chapter completed!