Is the e-commerce industry too competitive to survive? 3 harsh truths you must know before switching tracks.

E-commerceWith fierce industry competition, is switching tracks really the solution?

With profit margins getting thinner and thinner, the first thought that comes to many people's minds is: should I switch to another industry?

Switching to a seemingly more upscale sector with higher average order value, higher gross profit margin, and higher repurchase rate makes logical sense.

But reality often delivers a harsh blow.

Can changing industries really solve the problem?

I've seen many e-commerce entrepreneurs who, feeling the industry is failing, immediately turn around and look for "hot sectors".

The results of it?

New industries have higher barriers to entry and fiercer competition, which can lead to faster losses in the end.

why?

The problem isn't with the industry, but with the team and their capabilities.

The truth behind low profits: lack of capability.

Many companies have low profit margins not because the industry is bad, but because their business strategy is too simplistic.

They only engage in price wars and lack product premium.

There is no organized sales team, live streaming team, or influencer team.

Even if they switch to a high-barrier industry, they still can't survive.

This is the harsh reality.

Only by excelling in a less competitive market can new opportunities arise.

I later discovered a pattern:

If you can hone your business to perfection in so-called "bad sectors," new opportunities will often emerge on their own.

This isn't just motivational fluff; it's practical experience.

Personal experience: The cost of blindly switching projects

I have also experienced business downturns.

At the time, we tried new projects everywhere, but as a result, our energy was scattered and the old business declined even faster.

The core issue remains unresolved.

Later, I refocused my energy and concentrated on polishing.Web Promotion,SEOAnd operational capabilities.

precipitationAISystem capabilities.

With these foundations in place, the success rate of exploring new product opportunities increases significantly.

Case Study: A Comeback Resulting in Millions in Profits

I know an entrepreneur whose profits dropped from tens of millions to two or three million.

He felt the industry was failing, so he kept switching tracks, only to lose more and more money with each change.

I suggested that he make the best of the last remaining, poorly performing project he had.

Six months later, he used AI tools to successfully implement the operational capabilities across the entire business flow.

The results of it?

That old project, which originally had no prospects, has regained tens of millions in profits.

He then applied this capability to new products, which tripled the overall size.

That is the power of ability.

A poor industry isn't a dead end; competence is key.

If you encounter a situation where the industry is not performing well, it doesn't mean you can't switch to another industry.

Instead, blindly changing industries fails to address the lack of fundamental skills.

My approach is:

Don't rush to change it.

Take the time to refine the business at hand and solidify the team's capabilities.

Then look for new opportunities.

Confirmation of authoritative viewpoints

The Harvard Business Review once pointed out that "a company's long-term competitiveness often lies not in the choice of industry, but in the accumulation of organizational capabilities."

McKinsey's research also emphasizes that "even in low-growth industries, there are still companies that achieve excess profits through outstanding execution and team capabilities."

These viewpoints align perfectly with my practical experience.

Conclusion: Ability is the strongest moat.

The industry is just a stage; ability is the actor's foundation.

If you can't survive in a bad industry, switching to a good industry is just changing the battlefield and continuing to fail.

The real strategy is to hone top-notch team and system capabilities in any field.

When you have accumulated enough skills, opportunities will naturally come knocking on your door.

So don't rush to change industries.

First, ensure that you and your team have the foundation to survive in any market.

This is the key to long-term growth.

Industry is the wind, ability is the sail.

No matter how the wind changes, only a strong enough sail can carry you to the distance.

Starting today, stop fantasizing that changing tracks will solve the problem.

Focus your energy on honing the team's capabilities.

When you can excel in a less competitive field, future opportunities will inevitably belong to you.