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Have you noticed that more and more industries are starting to run out of profits?
Whether in brick-and-mortar stores or e-commerce platforms, many merchants are trapped in a vicious cycle of "shipping goods but not making money." Why is this?
The reason can be attributed to a simple but fatal phenomenon— the wrong product development approach.
Discovering the best-selling products of peers → copycat imitation → lowering costs, the beginning of a vicious cycle
When most businesses enter the market, they first conduct data analysis to discover their competitors' best-selling products . They think that if others are selling well, they should also try to replicate that success.
Thus began a market-wide imitation frenzy. Products featured similar designs and functions, but everyone was desperately trying to cut costs . Common practices included saving on materials, shortening production cycles, and lowering quality control standards.
In short, there is only one goal— to be as cheap as possible.
Price 10% lower, can you really win?
In such market competition, price war is the most direct and common means. Whoever has the lowest price will be competitive.
Therefore, everyone set their prices 10% lower than their peers.
What appears to be a good strategy to win over users is actually just the beginning of vicious competition.
The quality is getting worse and the price is getting lower
When prices are constantly driven down, product quality inevitably declines.
The raw materials have shrunk, the craftsmanship has shrunk, and even the after-sales service has shrunk.
Consumers have found that product quality is becoming increasingly inconsistent and the experience is deteriorating. When they are disappointed, their only reaction is to never repurchase.
We only ship goods but don’t make money, and consumers are also disappointed
The end result is that the market is flooded with low-quality products, and merchants can only barely make a living by selling more.
Each order may appear to be increasing, but actual profits are constantly being squeezed . And what about the consumers?
They questioned the entire industry, thinking that "all products of this type are bad, no matter which brand you buy from."
At this point, no matter how low you offer your promotions, customer loyalty has already disappeared.
How can we get rid of vicious competition? Go to the comments section to explore consumer needs
Because most people have the wrong product ideas, the e-commerce industry has no profit...
So, the question is, how do we create a good product and avoid falling into this vicious cycle?
In fact, the solution is very simple: go back to the basics and meet consumer needs.
This doesn't mean you should blindly follow trends, but rather that you need to gain a deeper understanding of users' pain points, needs, and expectations. A very effective method is to dig into the comments section.
Develop products carefully, differentiation is the key
The comment section is often the most authentic source of user feedback. By analyzing user reviews and suggestions, you can find out what they care about, which issues appear repeatedly, and which details can improve their experience.
Then, based on this feedback, diligently develop your product . Remember, there will always be competition in the market, but if you can offer a differentiated product, even a small innovation, it can make you stand out.
Price ensures that you have profit, so that you can develop sustainably
Once the product is ready, the next step is pricing strategy. A 10% lower price isn't your advantage ; your goal should be to ensure you make a profit . This isn't about greed, but about ensuring you have sufficient funds to invest in research and development, production, and after-sales service.
Only in this way can we achieve sustainable development , rather than getting caught up in a short-term price war.
Amazon model: Companies that pursue quality are more viable
Amazon, as one of the world's largest e-commerce platforms, also faces many competitors. But surprisingly, Amazon has not been dragged down by price wars.
Why? Because many excellent sellers focus on quality , such as the well-known brand Anker.
Anker's secret to success: quality first, winning consumer trust
Anker is a brand specializing in consumer electronics, from chargers to power banks, and its products are renowned for their high quality . They don't try to win through price advantages, but rather earn consumer trust through superior user experience and consistent product quality .
Anker's strategy is clear: prioritize product quality and user experience over setting a reasonable price.
This approach not only helped them remain competitive in the fierce market, but also helped them gain a large number of loyal customers and even become a top-selling brand on Amazon.
Why doesn’t Amazon go crazy with its prices?
Compared to the domestic e-commerce market, Amazon's price wars are not as intense , partly because many sellers do not blindly pursue low prices, but instead choose to win consumers' favor by optimizing products and improving services .
Like Anker, these sellers prioritize quality , which allows them not only to maintain profits but also to achieve long-term growth.
Differentiation and quality are the way out in competition
In summary, why are so many industries now struggling to make a profit? The core issue is that everyone is heading in the wrong direction.
Imitation, cost-cutting, and price wars are all short-term strategies that cannot lead to long-term development. If you want to stand out from the competition, differentiation and high quality are key.
Products are the foundation of a business, and profits are its lifeblood. You can ensure profits by studying feedback in the comments section, diligently developing differentiated products, and setting reasonable prices, while simultaneously providing high-quality products that encourage repeat purchases. Companies that prioritize quality will always be more resilient than those that survive on price wars.
Ultimately, the key to surviving and succeeding in this fiercely competitive market lies in how much time and effort you're willing to invest in understanding consumers and creating products that satisfy them . It's a long process, but the only sustainable path.
Summary: Start from the basics and make differentiated products
If you want to stand out from the current industry volume, you might as well try the following:
- Explore consumer needs in the comment section：Only by identifying the pain points can we prescribe the right medicine.
- Develop differentiated products with heart: Provide unique value that is different from the market.
- Pricing to ensure profit: Make sure you have enough resources for follow-up development.
- Take the quality route: Quality comes first, so as to gain long-term user trust.
Ultimately, quality determines everything ; don't be blinded by price wars. Strive to create excellent products to ensure your brand's long-term success.
Hopefully, the article "Why is E-commerce So Fierce? The Truth Behind Vicious Competition Making Profits Disappear," shared on Chen Weiliang's blog ( https://www.chenweiliang.com/ ), will be helpful to you.
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