Advertising revenue will become the main source of profit for C2C website

      2006 China online shopping research data show that in 2006 China’s total turnover of 23 billion yuan C2C, which Taobao ranked first in the market share of 65.2%. With the emergence of the third party payment platform and the establishment of credit evaluation system, C2C more flexible and free shopping model has also been recognized by more and more users, trading volume has also been rapid growth.

although the trading volume of C2C mode, but at this stage of the domestic C2C e-commerce website is no clear profit model, from the perspective of long-term development of C2C e-commerce, trading volume is not profitable again also cannot maintain sustained and healthy development of C2C e-commerce.

Taiwan auction site profit three

From the

Institute (MIC) latest 2007 "netizens online shopping behavior and the development trend of" data show that in 2006 Taiwan C2C online auction market size of NT $51 billion 600 million (13 billion yuan), including YAHOO’s PCHOME and were ranked one or two. Ari analysis found behind a huge volume of transactions, Taiwan auction site has formed a healthy and mature profit model: advertising + membership fees (slotting fees, trading commissions etc.) + value-added income, which is the main advertising advertising revenue for the enterprise or brand, and membership service fee is mainly for buyers and sellers, value-added income for the users in the senior segment of users. It is with a diverse and rich profit model, the auction market in Taiwan, the annual growth rate is maintained at more than 60%.

profit model in the future where?

C2C shopping website, there are three main profit model: advertising revenue, membership and commission income and value-added services revenue, the above three types of iResearch on profit model, analysis of the domestic C2C shopping website in the next 2-3 years the most likely mode.

(1) member and commission income

iResearch believes that at this stage, C2C is not suitable for shopping market launch for both the transaction commission charges, because many users especially sellers is the value of the causes of the network shops operating low cost and low price before trading activity, if the charges will likely take a knife to put on the market the most users cut to competitors and other forms of shopping website, the three parties are unfavorable.

(2) added value

value-added revenue is based on the basic services, services for the introduction of user segments. In May 2006, taobao.com launched the "typical service model is such a felicitous wish of making money" for sellers, but due to various reasons, in June 2006 March 2007, Taobao felicitous wish of making money "abortion; learn from experience, the Taobao store is divided into three categories, according to different categories of services, launch shop two level domain name service and reputation guarantee and other value-added services, and the corresponding charge service fee, spent the early launch.

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