Maybe it's cheaper because Pinduoduo is that kind of team battle. Taobao leads with 50% market share, followed by JD.COM with 30% market share. The former has many merchants, many product lines and the lowest price, while the latter has the advantage of self-delivery and real price. Both of them are good, accounting for more than 85% of the market share. Dangdang shared the remaining 10 points with Amazon.

At that time, almost everyone thought that there were no new e-commerce companies and no development opportunities until Pinduoduo appeared. In just three years, the number of users exceeded 300 million and went public in the United States. The market share reached more than 10 percentage points, which surprised Qiang Ge and Ma Yun. Pinduoduo has developed so fast because it is too cheap: paper towels 1 yuan, clothes 7 yuan. The most surprising thing is that the mobile phone on the APP is exactly the same as the mobile phone in the physical store. Other stores sell mobile phones for 3000 yuan, and only charge customers 1000 yuan for you to take home.

First of all, there are physical stores, because there are various expenses, whether it is rent, utilities, labor, or advertising, decoration, modernization and other miscellaneous expenses before opening the store, and mobile phones have not yet been sold. These costs condemn the upfront input cost of mobile phone distribution, and the price will be put online. Secondly, because selling things online, with the help of strong network traffic, potential customers.

Finally, e-commerce companies may spend some money to force sales of products while promoting them. But this product is usually small in quantity and low in price. Otherwise, they will lose a lot of money. According to the above data, a mobile phone with a price of 3,000 yuan in a physical store can be sold online for about 2,500 yuan within the normal range. I don't know how much Pinduoduo costs for 1000 yuan, but if you buy such a mobile phone, you must pay more attention to avoid losing money.