The underlying logic of the business The traffic  model is different.

For the platform? Douyin mainly wants to make money from merchants’ advertising. It is estimated that the revenue generated by Douyin’s e-commerce advertising platform “Juliang Qianchuan” accounts for 50% of the platform’s total advertising revenue.

It is a consensus among many businesses that the cost of Douyin traffic is getting higher and higher. If you invest 1 yuan in promotion fees? you may earn 2-3 yuan on Douyin? and 4-5 yuan on Taobao or JD.com.

Small and medium-sized brands The traffic

And merchants have low gross profit leverage existing customers margins? and their advertising only accounts for about 20% of the total advertising revenue. Therefore? the main contributors to Douyin’s advertising revenue are still big brand merchants. Douyin is unlikely to hurt big brand sellers for low prices? thereby hurting its own advertising revenue.

But it is different for Moduo? its main revenue cube they had to either use growth comes from commission income.

 The core distribution logic of

Douyin’s e-commerce traffic is still UV value? so GPM (sales per thousand impressions) is still the most important indicator.

Unlike Douyin’s many concerns? the traffic the agb directory first distribution method of Moduo is much simpler and more crude. As long as the price of a single product is low enough and there are enough placements? it can get more traffic support.

If you are a seller? after you put the product on the shelf? the system will give you a recommended price. If the price is lower than that? you can sell dozens of orders a day with the traffic. If the price is higher than the recommended price? I’m sorry that you can’t sell a single order.

Moduo has no concept of stores? and sellers cannot accumulate fans or obtain store bonuses from product sales. Every product has to enter a new round of low-price competition or high-price launch.