Analysis Of The Profitability Model Of C2B E-commerce Enterprises

In recent years,with the popularity of online payment methods,the continuous improvement of logistics systems and the support of policies to promote urban and rural development,e-commerce sales platforms have ushered in a golden age of development.At a stage when major traditional e-commerce platforms are integrating and upgrading one after another and entering the high-end market,some e-commerce platforms have gathered cold demand at the end of the long-tail market in order to achieve misaligned competition with the two e-commerce giants,Ali and Jingdong.This competition has led to the initial sinking of the e-commerce market,while also promoting the development of the C2 B e-commerce model,which has gradually tilted the e-commerce industry towards a buyer’s market environment and gradually led to a new trend in the industry’s development.However,the profit-seeking nature of capital has led the market to focus on the profitability of C2 B e-commerce platforms in addition to their growth,which in turn is affected by their profitability models,making it important and relevant to study the profitability models of this emerging e-commerce platform.The case study in this paper is about the most representative C2 B e-commerce platform,which has gathered a large number of users through the "group buying +sharing + community" method,thus having the ability to bargain with the supply side,and then use the low-priced products to quickly capture market share in the solid industry structure.The profitability model ultimately works.The ultimate effect of the profitability model is to influence the profitability of the company,so the financial indicators related to the profitability of the company under the current profitability model have been selected for the study.On the negative side,the profitability of PDD still needs to be improved,with problems such as a single source of revenue,high marketing expenses and limited operating cash flow.In this paper,we analyse the profitability model of PDD and its financial evaluation,and then interpret the profitability model of PDD from the perspective of each of the five components.In terms of profit target,PDD uses social media platforms to attract traffic,targeting price-sensitive users at the tail end of the long-tail market,and the supply side of the platform is also low to mid-range merchants.In terms of profit leverage,PDD uses viral marketing to rapidly increase the visibility of the platform,but the investment costs and dependence on third-party platforms are high.The community fresh food business to be launched in 2021 has not yet become a stable source of profit,which is a single source of profit;in terms of profit barrier,PDD has always been committed to promoting agricultural products to the market,and the supply chain of agricultural products is the result of long-term precipitation of PDD’s excellent resources.Finally,through the aforementioned analysis,the problems in the profitability model of PDD are reviewed,summarised and suggestions for rectification are made.It is hoped that the research in this paper will help to improve the profitability model of PDD and promote the value creation of the company.