Research On The Profit Model Of Fresh Food E-commerce Platform

With the rapid development of the internet,e-commerce platforms have gradually improved,people’s standard of living has gradually improved,the share of fresh produce in the food consumption structure is increasing,more and more people want to live better and more conveniently,and more and more people are using e-commerce platforms to buy fresh food.Dingdong Buy began its transformation in 2017 and gradually started to open fresh food sales channels before becoming the largest front-end warehouse company in China.However,with more and more competitors flooding this market,and in the midst of an epidemic in recent years,it is worth taking an in-depth look at how to tackle the new dilemma and how to leverage its strengths to increase its market share.This paper begins by using the literature review method to summarize and compare the role of profit models,value creation theory,value chain,etc.in the growth and development of enterprises,illustrate the current state of research on profit models of fresh produce e-commerce at home and abroad,and outline the basic research theory.The company is one of the leading fresh produce e-commerce platforms,having established more than 1,136 warehouses in 36 cities and operated 40 urban processing centres in 14 cities in China.The data showed that total revenues for the quarter reached $6.2 billion,up 13.1%year-on-year;Non-GAAP net profit of$116 million compared to a Non-GAAP net loss of $1.034 billion in the same quarter last year;and the company generated net cash flow from operations of $682 million,achieving a positive cash flow from operations for the full year 2022.However,during its development,Dingdong Buy faced many problems,combined with theoretical research and analysis,it is found that there is mainly a small market share due to the lack of sales channel;customer complaints due to the impact of the chain and marketing effect;lack of profitability due to the management and exploitation of labour costs;and the lack of innovation is easily imitated,resulting in low barriers to entry.Therefore,we need to expand Dingdong Buy ’s market share through innovative and non-reproducible business practices,accurate marketing to reduce operating costs,strengthen the chain control mechanism to reduce customer complaints and cargo losses,and open channels to expand the market to maintain stable customers.It also provides some guidance for developing brand marketing strategies of fresh food e-commerce companies in the same sector in the context of new distribution,which will help the sector as a whole to move forward.