The difference between traditional business ideas and e-commerce: Which one is more profitable? The inside truth shocked the boss circle!

You are still using the traditional business thinkingE-commerce? No wonder I can’t make money no matter what I do!

This article deeply analyzes the fundamental differences between traditional business and e-commerce in five aspects, including products, channels, operations, and traffic, and tells you why many traditional bosses fail in transformation and how to truly use e-commerce thinking to boost sales and counterattack.

If you don’t read this article, you may continue to burn money without looking back!

wake up!
You can’t become the king of the Internet just by spending money!

What is traditional business thinking?

I have been influenced by the older generation since I was a child. They are the old-fashioned businessmen who carry cigarettes and wine and visit customers one by one.

What is the essence of traditional business?
It's a deal breaker.

Whether it’s a salesperson leading the charge or the boss himself, the goal is the same:
Get that keyperson, such as purchasing managers, channel bosses, and advertising space managers.

Using connections, sheer personal connections, and betting on a one-time big order, success or failure often happens in a flash.

I once went to attend an industry exhibition.
The scene is quite grand, and most of the bosses have invested a lot of money.

Unfortunately--
Although these people have invested a lot of money in e-commerce, very few of them have succeeded.
Why?
What's still in my mind are those old accounts.

What is the e-commerce idea?

In the world of e-commerce, no matter how strong your connections are, they are useless.

Even if you know the platform's second-hand staff and have recruited top anchors,
Products that are not competitive still fail miserably.

E-commerce relies on data.
It depends on the consumers’ mind.
Just because you think it’s good doesn’t mean it’s good.

The product design is wrong, the volume is too large, the logistics is too expensive, and the price is not attractive.
It's all in vain.

In the e-commerce world, even the appearance of the product, whether the packaging is pleasant to unpack, and the shipping cost are all very important.
You have to be careful with your calculations.

In a fit of rage, do you just move goods directly from the supermarket?
Congratulations, you’ve lost all your money!

What is the secret of operation?

When many traditional bosses hear the word "operation", their heads are immediately filled with question marks.

Internet marketingWhat exactly does operations do?
Simply put, generate traffic + conversion.

drainageVolume = exposure x click-through rate.
Sales = traffic x conversion rate x average order value.

Does it sound a bit confusing?
In fact, it is:
Let more people see it, more people who see it will click in, and more people who click in will place orders.

But here is the problem.

If the product is rotten,
No matter how advanced the technology is or how hard you work at operations, you can only engage in price wars, which will only make things worse.

What is the charm of e-commerce?
The traffic cost is lower than that of traditional stores, and much lower than the trick of treating people to dinner and drinking Moutai.

Spend less, earn more.
Does it sound exciting?
The premise is that you have to have good products!

Are traffic fees and advertising fees essentially the same?

E-commerce buys traffic just like traditional businesses spend money on advertising.

The difference is that e-commerce traffic is purchased accurately.
Spend one dollar and know how much exposure and transactions it can bring.

And traditional advertising?
A headline in a newspaper, a one-minute ad on TV,
All the money spent was wasted and I don’t even know who saw it.

So in the e-commerce world,
Money is spent clearly.
People are convinced by the cutting.

Good products can save lives, but bad products can only be sold at bargain prices

There is an old saying in the e-commerce circle:
“Good products speak for themselves.”

A good product can become popular without spending much money.
Bad product?
No matter how much money you spend, it can't save you!

Many bosses came to me and asked, "Why are my products not selling well?"

I gritted my teeth and told them:
Brother, even if I give you this thing for free, I still think it takes up too much space!

Finally, there was only one way left:
Lower the price, drop it below the floor, and make it extremely cheap.

Does it sound a bit heartbreaking?
The reality is even more cruel than this!

The real responsibility of operations

Really great operation.
It’s not about packaging crappy stuff as hot-selling products.

But -
Help good products find the right people!

The world of e-commerce is so transparent that it makes you question your life.

If your product explodes,
The neighbor can copy it in minutes and the price is cheaper than yours.

No brand?
No innovation?
Good luck, don't expect to win easily!

Shelf e-commerce? Content e-commerce? Can’t tell the difference?

Don’t think that you’re done once you’ve learned how to open a store and put products on shelves.

That's just elementary school level!

We have now entered the era of content e-commerce.
What is the content?
Short videos, live broadcasts, pictures and texts,XiaoHongShu(小红书)Notes, Zhihu answers...
All of them!

Good content can get traffic at 0 cost.
It’s even better than winning the lottery!

However, content e-commerce does not rely on luck.
Instead, study systematically and practice hard.

Want to rely on talent?
Most people don’t have that luck!

How to play content e-commerce?

First, familiarize yourself with the platform rules.
Each platform has its own little temper, such asVibratoI like the completion rate, and I like in-depth answers on Zhihu.

Second, understand the traffic distribution mechanism.
Your content must either stimulate the eye or touch the heart, otherwise no one will read it.

Third, build a personal image.
Personal IP should be either interesting, professional, or have a story.

You can’t become a great writer just by shooting two videos or writing a few articles.

You have to persist and keep outputting.
You have to keep trying and making corrections.

When building a personal IP, don’t start by thinking about cutting leeks

Now many bosses want to create IP.
When I think about IP, my mind wanders:
"If you have fans, you can take their money!"

Haha, you wish!

Really popular IP,
Relying on selfless sharing,
It depends on the sincere output of value.

The moment he opened his mouth, he revealed his fox tail that said "I want to make money".
Who cares about you?

Mixed in e-commerce, mixed in the content circle,
Being a good person comes first, making money comes second!

What should traditional bosses do when transforming into e-commerce?

Want me to say,
the most important is--Learn it yourself first!

Lay a solid foundation of basic knowledge.
Only then can you understand the undercurrents in the e-commerce world.

Otherwise, what is the point of buying traffic, placing advertisements, operating a team, and shooting videos?
Someone just says a few words to you and you foolishly pay money.

I have seen too many local bosses.
I was fooled around.
He cheated one family after another.

The results of it?
I lost my money, my business went bankrupt,
There is no way to protect rights!

From the perspective of business nature,
Whether it is traditional business or e-commerce,
The core is always:Provide value, gain trust, and continue to grow.

E-commerce has just changed the battlefield.
Changed a set of weapons,
But the nature of war has never changed.

Only by continuous learning and adaptation,
Only in this rapidly changing era can we remain invincible.

People with rigid thinking are destined to be eliminated by the times.
Those who constantly break the boundaries of cognition,
Only then can you ride the wind and waves in the new world!

Summary: Traditional VS e-commerce, the key to transformation

• Traditional business relies on connections, while e-commerce relies on products + data.
• Traditional business relies on relationships, while e-commerce relies on traffic and conversions.
• Tradition prefers to work behind closed doors, but e-commerce must adapt to the market.
• In e-commerce, products are king, operations are queen, and content is general.

Want to transform?
Change your mind first, then act!

Stop living your life by the old calendar.
Only by embracing change can we have a future!

Don't forget, great master,
Always on the road of continuous learning and iteration.

Do you want me to give you a "Ultimate Self-help Checklist for Traditional Bosses Transforming into E-commerce"? If you want, nod your head and I'll arrange it right away! 😎