The e-commerce platform (here refers to self-operated business) can be understood as the sales center of commodities, and the commodity management stage is divided into the following major parts according to the circulation link: procurement, storage and processing, and sales.
The management dimensions of commodities are different at different stages. Today, based on the author's personal work experience, I will briefly share the management of the procurement link.
The procurement stage, in short, is to select and buy products, involving product selection, bidding, gross profit management, etc.
The key point of the business is to buy the right products at the right time, and eliminate the slow-moving products at the right time to ensure that the company can make a profit (profit does not simply refer to making money through sales, but also includes other potential "benefits" such as platform drainage) .
1. Gross profit margin management
As mentioned above, the core purpose of platform sales is to make profits, so gross profit margin is a very core assessment indicator.
Gross Profit Margin = Gross Profit / Operating Income
=(Sales revenue-purchase cost-performance cost-other costs)/operating income
For example, the daily average selling price of commodity A on other platforms is 10 yuan, and the sales volume is very high. At present, the supplier price you can obtain is 10 yuan. Considering other costs of platform operation, if you want to make profits, the price can only be If it is higher than 10 yuan, it will inevitably lead to an embarrassing situation of low competitiveness and low sales; and if you want to obtain the same competitiveness, you can only sell with negative gross profit, which is not sustainable. So until you find the right supplier, not included in the purchase is the right choice.
However, there are also special cases. If other categories of A on the platform have price advantages (profitable), and the introduction of A product is to increase the exposure of the overall product category through this product, then we can also try it, because the overall category The target profit can still remain positive.
1. What kind of gross profit margin is reasonable?
The rationality discussed here is based on the long-term average gross profit margin. Based on various promotion activities on the platform, the gross profit margin of commodities will fluctuate, and there are also occasional negative gross profit.
The rationality of gross profit margin is relative to the overall industry category and the platform's positioning of products. For example, the gross profit of beauty products is usually much higher than that of fresh products, and the gross profit of profitable products is higher than that of drainage models.
Therefore, the team's gross profit rate target needs to be dismantled according to two dimensions - category and product positioning (here, the dismantling needs to rely on historical prices and sales). Under the condition that the overall gross profit target can be achieved, it is possible to introduce some popular items that will cause negative gross country email list profit in order to increase the overall sales and profit.
In addition, product positioning is not a fixed product label, but a changing virtual concept. The system classifies products based on the overall proportion of sales and gross profit. For example, according to the twenty-eight principle, usually 80% of the sales come from 20% of the products, and this part is the drainage in our usual sense (the percentages are all summaries).
However, before introducing products or putting them on the shelves, based on other platforms or online forums, procurement personnel usually have a certain ability to predict.