2012 new trend: e-commerce or war from price war

The largest domestic shopping search engine, Amoy.com, used its price monitoring system to release the price index of B2C merchant products in the fourth quarter of 2011. The report shows that after entering the fourth quarter of last year, the average price of domestic B2C market products showed a significant upward trend, and the price of online retail products increased by about 5%, slightly higher than the increase of CPI in the same period. For this trend, the industry believes that e-commerce may change from "price war" to "service war" this year.

According to the data of Amoy.com, among all B2C merchants in China, Jingdong Mall, which is known as the “lowest price of the whole network”, led the domestic B2C website in the price increase in the fourth quarter of last year, from September 20, 2011 to 2012. In the month, the price of Jingdong Mall continued to rise, and the average price index remained at 5% to 15%.

The price fluctuations of Dangdang and Amazon China, two other major B2C websites in China, appear to be relatively stable. The price of Tmall's commodity in China's largest B2C mall has remained stable until November, and the “Double Eleven” promotion in November has kept its price down, which is lower than the industry average price increase index.

One Amoy Network expects that due to the reduction of external investment and the increase of operating costs, China's B2C companies will be more cautious in price wars in 2012. More and more B2C merchants will change the practice of “burning money for traffic”. The price war has turned into a service war and a quality war. Li Chengdong, an analyst at Pai Dai.com, said that the essence of e-commerce is to do business and sell goods. It is not possible to ignore the user experience by considering only the capital factor. If the business is not sustainable, it is difficult to avoid bankruptcy. Therefore, in 2012, the price of online shopping goods rose or became the norm in the industry, but on the other hand, this year will also be a year in which China's B2C enterprises have matured and returned to the essence.

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