As is well known, the fundamental logic of e-commerce is: traffic + conversion + profit margin = making money. For newcomers to the industry, the operational logic is straightforward and closely follows this formula.
Newcomers focus on traffic, conversion rates, product pricing, and profits, ultimately aiming to maximize their revenue. However, over time, novice operators often find that if they only focus on the basic logic, certain aspects of their operations can become overwhelming. The most common question that arises is: why aren't orders being placed? Why am I not making money?
The root cause of this problem is often the singularity of operational thinking due to insufficient refinement. How can this be addressed? By breaking down operational ideas into smaller, more manageable factors, one can solve problems more effectively. In other words, the success of large companies and sellers is often due to their precise grasp of these details, which helps maintain a high success rate in their operations.
To systematically break down these factors, I have summarized five key areas: operational mode, operational goals, operational direction, operational rhythm, and operational nodes.
1. Operational Mode (Company Decision)
The highest priority is the operational mode, which can be seen as the identity framework. It is the logical foundation for a product's journey from inception to market. It also serves as the pivot point for all future operational methods. Currently, there are four main operational modes: premium, fine-laying, distribution, and self-delivery.
Premium Mode: Focuses on quantity and weight.
Fine-Laying Mode: Emphasizes conversion rates and profit margins.
Distribution Mode/Self-Delivery Mode: Prioritizes transaction trends.
2. Operational Goals (Subjective Qualitative)
Once the company's operational mode is determined, the operational goals for each stage rarely change. However, the emergence of natural bestsellers or the decline of category leaders might necessitate adjustments in product operational goals. Operational goals, as a concrete manifestation of the operational mode, are generally categorized into three types:
Popular Products: Typically found in the premium mode.
Profit-Oriented Products: Usually associated with the fine-laying mode.
Testing Products: Often used for stocking and self-shipping.
Different operational goals require varying degrees of emphasis on different factors, and it is crucial to avoid using the same techniques and logic for products with different goals.
3. Operational Direction (Playing Style Tendency)
In theory, once the product model and goals are set, the subsequent operational methods become more standardized. This is the basis for the standardized operational processes of many large companies. The key is to systematically categorize the factors and adjust only the necessary ones when issues arise.
Advertising-Led Approach: Can be template-based (refer to my previous article on standard product styles) or customized (based on personal experience).
Review-Led Approach: Multiple methods, with the core focus on driving traffic, using advertising as a supplement to secure top positions.
Listing-Led Approach: Emphasizes the product and subjective visual effects.
4. Operational Rhythm
With the operational mode, goals, and strategies determined, the next step is to introduce the operational rhythm, which involves more detailed factors. Controlling the rhythm of an operation often requires a combination of various details. I have identified four common types of operational rhythms:
Second Peak: Rapid spikes in activity.
7-Day Curve: Weekly cycles.
4-Week Spiral: Gradual increases over a month.
Natural Accumulation: Organic growth over time.
5. Operational Nodes
After setting the promotion plan, the journey towards the established goals begins. Along the way, numerous nodes and potential choices and operations will arise, and short-term goals may need to be adjusted to align with the final plan. These moments of decision are what I call operational nodes.
For example, my current goal for a profit-oriented product under the fine-laying advertising model is to drive sales through on-site advertising. The planned pace is a 4-week spiral, but after the fourth week, my product's traffic and order volume are severely insufficient. Due to advertising costs, my product is currently operating at a loss. If I stick to my initial profit-oriented goal, I can only marginally reduce the advertising budget or increase the unit price, which would likely lead to a vicious cycle. At this point, to achieve my ultimate goal, I must shift the product's target to either order or traffic-oriented to ensure I have enough data to support subsequent operational adjustments. Once all other details are optimized, I can then refocus on maximizing profits.
Appendix
You may have noticed that when breaking down operational thinking, I did not list all the specific factors or details for each keyword. This is to avoid misleading or incorrect information. Everyone may have different conclusions regarding the attention and modification of specific key details. Below, I will briefly summarize all possible details and factor ranges for reference:
Market Research: Category traffic, keyword traffic, market capacity, competition situation, seasonality, competitor pricing and profit margins, competitor product attributes, seasonality, top long-tail keywords, lifecycle, selling point analysis, demand segmentation, pain and itch points, sample analysis, user profiles, product profiles, style design, simulated listing and trial operation results.
Promotion Plan: Advertising plan, off-site plan, review plan, discount plan.
Operational Advertising: Click-through rate, conversion rate, ACOS, ACOAS, advertising report analysis results, no-word plan, advertising space.
Off-Site Discount and Review: Single volume, discount ratio, traffic, competitor comparison, market trend, growth point analysis.
Monitoring Center: Sales data monitoring, store data monitoring, customer service, inventory monitoring, keyword monitoring.
Listing Optimization: Main image, A+, video, QA, reviews, buyer show, price, flagship store.